Despite our global car culture, buying an automobile is quite expensive. Even if you’re taking out a loan and financing the vehicle over a number of years, you will pay more in interest rates. Any way you look at it, you are in for an investment. But it’s also a fun time, when you get decide on what you will be driving for what is likely years to come.
Buying your first car is something you’ll never forget, so make sure it is worth the memory and the money. Whether you’re thinking about buying a new car or a used one, which is usually around 30-40 percent cheaper, you should take care to make the right decision. It doesn’t matter if you’re an established adult or a teen driving for the first time, taking the time to figure out a plan will make all the difference in the world. The following are some things you should know before you pull the trigger on your first car.
It’s Important to keep Safety in Mind
Safety is probably the biggest factor when buying any car, and yet many people don’t think about it at all. Most of the time first-time car purchasers are inexperience drivers, but this isn’t always the case. However long you’ve been driving, it is important to think about the safety of the car first. This, of course, has to do with other factors. For example, whether the car is new or used, what make and model it is, and how old it is all play a role in how safe the vehicle will end up being.
Your Budget
It is very important to figure out what your budget is before you do anything. You should calculate what you can afford and how you will pay for it. A rule of thumb is to find out how much you can easily spend over a period of three years and use it to buy the car. A pivotal question to ask yourself is if you will take out any loans to finance the car.
If you will, then it is imperative that you take into account interest costs and determine what you can spend based on the coast of the car and the interest you will incur. You should be realistic about how much you can afford. It will not only help you in the process of buying the car, it will save you when you have to make payments.
What your Bank will Offer
When you know how much you can spend on a car and want to take out a loan to finance it, you should begin by seeing what your bank will offer. According to the experts at the site MoneyPug, which is used to find the best car finance deals, many lenders won’t agree until you sign the papers and are finishing the process. Still, you should be able to be pre-approved for a loan at the current rate.
Another option to check for loans are credit unions. Make sure to ask both about lowering the interest rate and setting up automatic payments. Most banks will lower your interest if they are taking it out every month. You shouldn’t go directly to a car dealer, it is likely that you will be able to find a better rate somewhere else.
The Conditions of the Car
Then, after you have figured out how you will pay for the car, you will finally begin looking. It is important to be aware of the conditions of a used car. You should always take it to a mechanic you trust before buying it. Knowing specifics on the make and model can also help determine if there was something wrong with that particular car. How old is it? You want to try to buy the most current model of car you can. Not only is it a better investment, it is the safer option.
Finally, when you have determined your budget and method of payment, and have found a reasonably priced and safe car, you will fill out all the necessary paperwork. You will need insurance, a title, and a vehicle identification number. Once you have all the pieces in place, the car will be yours. It is an exciting moment. Don’t let it become stressful. Do your research, take your time, and find the right car for you and your situation.