Tips for First-Time Car Buyers
Buying a car for the first time is an exciting milestone for any driver, and it’s important to do a bit of research before you get behind the wheel. Where do you start, and what do you need to know to get an easier and more convenient shopping experience?
To help you work through buying your first car, Val-U-Line® is here to guide you through the process. Let’s get started!
How to Buy a Car for the First Time
When you’re shopping for a vehicle, you’ll have to go through a few essential steps before you’ll be able to drive home.
Start by taking some time to think about what to look for when buying your car. Think about what your budget is going to look like and consider what you need out of your first car. Do you want a high-performance machine, something with lots of space, or a tech-savvy ride? These days, there are lots of great options, including:
- SUVs
- Sedans
- Hybrids
- Trucks
- Luxury cars
Once you come up with a list of must-haves for your vehicle, do a bit of research to find out which one has everything you want and need. It’s easier than ever with so many great resources available online. You can find reviews and testimonials for just about any vehicle you have your eye on.
After that, you’ll want to check out the car you want for yourself. That’s most effectively done with a test drive. You’ll be able to see how it performs firsthand and get a closer look at its interior and features to see if it really is the best fit for you.
How to Finance a Car for the First Time
Financing is the next big step. This could be tricky for some first-time car buyers, especially if they are still working on establishing a good credit score. Still, there are plenty of great financial options out there for first-time buyers.
One way to help make a car loan more affordable is to put more money down. In an ideal world, you should put a 20% down payment on a new car and a 10% down payment on a used car. A larger down payment may also help open up your loan options.
Pro tip for first-time buyers: The temptation to opt for a longer loan term is high, as it could help make the monthly payments more manageable. It may be a better idea, however, to steer clear of 72- and 84-month loans and go for a loan term of 60 months or lower. A shorter loan term could help you build equity and possibly let you enjoy the car payment free for a couple years.
A cosigner could also help first-time car buyers secure more favorable loan terms. They are usually a family member or close friend with good credit. They’ll sign onto the loan with you and agree to take responsibility for the payments should you be unable to make them.
Additional First-Time Car-Buying Tips
Overall, the process of buying a vehicle for the first time is simple. However, there are ways to make things even easier. Here are a few tips that all first-time car buyers should know:
- Use the 20% Rule when budgeting.
- Work on boosting your credit before buying.
- Consider buying used.
- Always check the CARFAX® Vehicle History Report™ before buying used.
- Be realistic when determining your needs.
Check out our Tips for First-Time Car Buyers for more helpful vehicle-shopping tips.
1. Use the 20% Rule When Budgeting
Creating a budget is key whenever you’re buying a car, and it’s especially important for first-time buyers. A realistic budget will help you figure out exactly how much car you can afford. Remember to include regular automotive expenses, like gas, maintenance, insurance, and any loan payments.
The best strategy for creating a realistic budget is to follow the 20% Rule, in which you’ll spend 20% of your income on transportation. If you really want to save money, you could also make it 10%.
2. Work on Boosting Your Credit Before Buying
If you’re far enough ahead of the curve, you may be thinking about buying a car before you actually need it. Great idea! This will give you time to work on your credit before entering the financial process.
If you have low credit or no credit, here are a few tips to help you improve it:
- Pay all credit bills in full and on time.
- Keep balances on credit accounts low.
- Avoid opening too many new credit accounts.
3. Consider Buying Used
Buying used is a great idea for just about every first-time car buyer. They have several benefits over buying new. Some of them could include:
- A lower initial cost
- Lower insurance rates
- A larger selection
- Superior long-term value
A car is an investment, and you’ll be able to get the most out of it when you choose to buy used. When well-cared for, a pre-owned car can hold its value for years to come, so when the time comes to sell, you may be able to get a nice return.
4. Check the CARFAX® Vehicle History Report™ Before Buying Used
When buying used, it’s important to remember to check the CARFAX® Vehicle History Report™. It will give you more information on service records, reported accidents, and title history, so you can ensure you’re getting an experienced and well-cared-for car.
What’s the best part? Most reputable used car dealers will provide a vehicle history report for any vehicle you have your eye on, making this tip easy to employ.
5. Be Realistic When Determining Your Needs
Buying your first car is exciting, and while you may be tempted to splurge on your dream car right away, it may be a better idea to be more realistic with your transportation needs.
Consider what your daily drive looks like. If it’s a long ride, you may want to consider a more efficient option. If you’re always taking road trips or going camping, an SUV with plenty of cargo space could be the best choice. It’s all about fulfilling those needs and then looking to satisfy a few of those wants.
If you’re far enough ahead of the curve, you may be thinking about buying a car before you actually need it. Great idea! This will give you time to work on your credit before entering the financial process.
If you have low credit or no credit, here are a few tips to help you improve it:
- Pay all credit bills in full and on time.
- Keep balances on credit accounts low.
- Avoid opening too many new credit accounts.
Drive Home in Your Perfect First Car
If you're a first-time car buyer, be sure to keep these tips in mind as you move through the buying process. You’ll be behind the wheel of your very first car before you know it. The greatest tip of all is: Remember to have fun—you’re buying your first car.
For more information and car-buying tips, contact Val-U-Line® today!
