Buying the first car is one of the most exhilarating experiences for most people. It’s one thing having that hand-me-down you got from your parents, and it’s an entirely new experience when buying your car. Even if the vehicle is not as flashy as your dream car, it’s still a stimulating and nerve-racking experience.
It’s one of the significant steps and investments as an adult. Therefore, you must do your due diligence before running to the car dealership. To help you do your research here are the six most important things you should understand before buying that car.
Determine what type of car suits your needs. Not every car on your dream board fits your current needs. So, the first step is to have a realistic look at your needs. Do you need a car to take you to your job daily? Do you need a car for weekend trips with your friends? Do you need a spacious car due to your daily needs? How big is your family?
The above questions will help you to start getting an idea of what vehicle would ideally fit your needs. Additionally, consider other factors such as the weather conditions, the conditions of the roads you’ll be using daily and such. By now, your list of preferred cars should be slimmer than it originally was.
What’s your budget?
The next step is to examine your cash flow and determine how much you can use to purchase the car. The major thing to consider is how much you use for your upkeep (food, rent, utilities, and takeouts). Once you know how much money you spend on your upkeep, calculate how much you’re willing to spend on fuel, insurance, and car maintenance. The remainder of the money should give you an idea of how much you are capable of paying for the auto loan.
Know what your options are
After understanding your needs and how much you’re willing to spend on the car, hop onto the internet. Get to know what your options are. Multiple vendors on the internet can help you identify vehicles that match your needs and are in your price range. This will aid you to narrow down your options and determine which vehicles are within your budget.
Determine between a new or used Car
After identifying what new car you qualify to purchase, you need to consider whether to proceed with shopping for a new car or find a second-hand one. A second-hand car will be cheaper to buy and would enable you to get a more exotic car at a relatively low price as compared to a new car.
Note, if you decide to go with a second-hand car, you will need to be keen on the wear and tear. So, make sure that you have a professional mechanic to inspect the car before you buy it thoroughly.
Get your credit score
If you haven’t already, get your credit score. It will determine the amount of rate you will have to pay on your auto loan. Note, it’s advisable to pay down as much money as possible to reduce to loan you will be given. This will also cut down the time you will have to repay the loan.
So, before approaching any auto loan provider, ensure that you have a loan credit report from all three credit bureaus. The bureaus are Transunion, Equifax, and Experian.
Identify the best lender
This step is possibly one of the most significant in the entire process. Do not just go with one lender only because you were referred to them by a friend. Ensure that you conduct extensive research to get the best deal. Visit all the lenders you can and get quotes from all of them. Next, visit the CarsDirect Auto Loans Review for 2019and identify all the lenders offering the best deals. From your list of lenders identify the one with the best services and the lowest interest rates.
The biggest worry to most people when shopping around is the fear that the many credit applications will affect their credit score. Note, FICO gives a 14- 45 days to shop around when applying for such big loans. If you do your shopping within 14 days, it will not significantly affect your score.
With the newly gained insights, you can go ahead and apply for a loan and go ahead and get your first car. Remember, you should always negotiate when buying the car. It will give you the last chance to get the car at a discount leaving you with more cash to pay for the insurance. Note, if you’re buying a second-hand car, you can negotiate with the seller to lower the price or have them take care of any repairs and inspection before you pay for the asking price.
All the very best as you research, purchase, and enjoy your first car.