Car-buying can be daunting, but with proper preparation you can feel at ease making that big first purchase. From saving for a down payment to budgeting, this guide can help ease you through the process and prevent buyer’s remorse.
Make a list of must-haves and nice-to-haves before entering a lot. This will help keep you focused and counter salesperson pressure.
1. Know Your Budget
Purchase of a vehicle can be an intimidating task, and salespersons may tempt you into purchasing something beyond your means. To help make sure the process runs smoothly and you make informed decisions, follow these tips when buying your next car!
Utilising an online calculator or car affordability guide, create your monthly car budget. Many experts advise keeping car payments and insurance costs below 20% of take-home pay; having this number in mind helps prevent financial overextension when purchasing vehicles outside your budget.
2. Know Your Needs
Preliminarily identifying your needs when purchasing a car will make the experience much less daunting. Take note of your lifestyle, prioritize features, and be open-minded when comparing vehicles in search of one that best matches them.
This step will help narrow your choices, and can prove useful when negotiating at a dealership. Doing side-by-side comparisons allows you to gauge horsepower, fuel economy, seating capacity and other features to find which best meet your needs – it is also important that you understand any state requirements for purchasing your vehicle.
3. Know Your Wants
Purchase of your first vehicle can be an exciting adventure, but be wary of letting emotion cloud your judgment and end up with something beyond your budget or does not meet your needs.
Create a list of all of your car needs and desires. This should include everything from upgraded safety features, luxurious design features and fuel efficiency requirements to budgetary constraints for finding your ideal vehicle. Online tools can even help determine your budgetary limits when looking at various models – then start shopping! Be wary of salespeople trying to convince you otherwise – be wary!
4. Know Your Options
Acquiring your first car can be both thrilling and nerve-wracking, yet preparation is key to avoid the financial mistakes many first-time buyers make daily.
These include purchasing an overpriced vehicle, stretching out loan payments beyond what’s feasible or failing to read contracts thoroughly. When considering buying new or used cars, be aware of all your options – for instance whether resale value matters more or features and benefits are more advantageous; plus taking note of safety ratings.
5. Know Your Finances
Car buying can be an expensive venture. When setting your budget, be realistic about what is feasible or it could end up costing more than its worth.
Navy Federal’s Car Buying Service Powered by TrueCar is designed to assist you in finding a vehicle within your budget and needs. When setting a budget, remember to include costs like insurance, maintenance, fuel and taxes which could increase monthly payments.
6. Know Your Credit Score
Holding onto a healthy credit score is vital when purchasing a car. Your score will help determine your loan eligibility and interest rate.
Checking and improving your credit score are free services available 24/7, such as paying bills on time. Knowing your score also enables you to compare car insurance premiums, which is an integral component when buying a vehicle (check out The Zebra’s car insurance comparison tool for help here). Knowing this will give you all of the data necessary to make informed decisions suited for both your family’s needs and budget.
7. Know Your Options
Car purchasing can be an intimidating experience for new buyers, but being well-prepared will help ease the process and lead to purchases that meet both your needs and preferences.
As you shop for new or pre-owned cars, consider safety ratings, resale value and fuel efficiency when making your selection.
Consider your financing options, from getting preapproved with banks or credit unions to vehicle finance companies like Carvana that make the process more straightforward.
8. Know Your Finances
Car shopping can be both thrilling and daunting for first-time buyers. There are many factors to keep in mind, from setting a budget and researching vehicles to exploring financing options and considering financing solutions.
Without the appropriate knowledge, first-time car buyers can make costly financial mistakes every day. Don’t be one of them! Use our comprehensive car-buying checklist to make sure you find a vehicle that best meets your needs and preferences; additionally, it is vital to research market pricing of potential choices prior to visiting a dealership.
9. Know Your Options
Understanding your options when purchasing a car – be it online, at a dealership, or through platforms like Carvana – is vital in order to make an informed decision. Research should cover everything from safety ratings, resale value and maintenance costs before making your choice.
Prior to visiting a dealership, it’s also crucial to secure financing and obtain a vehicle history report. Check with banks, credit unions or auto finance companies like Capital One for financing options that offer first-time buyer programs with special incentives – and possibly preapproval before setting foot on the lot!
10. Know Your Finances
First-time car buyers can find it daunting. There’s much to consider from setting a budget to considering new or pre-owned options.
Be sure to factor in the costs associated with car insurance and any additional fees, and get preapproved for a loan beforehand to give yourself more negotiating power at dealerships.
Although it can be tempting to purchase your dream vehicle without considering its financial ramifications first, doing so could leave you cash-strapped and carless in no time at all. Follow these guidelines to enjoy a stress-free journey!
