Things to Consider in Buying your First Car

A car, either luxurious or average, is the dream many people crave to achieve sometime in their lives. But getting a first car can be a rite you will live to remember for long. It takes prior consideration to understand the whole process and what is expected of you before heading to your car dealer. Check your budget, weigh your financial ability and do a proper research on the subject.

Setting a Budget

The hardest part of buying a new car is reconciling the car you’ve always dreamed of with the reality of the cost. Cars are expensive in and of themselves, and there are many fees at the time of purchase to consider—not to mention the recurring cost of car insurance, general maintenance, parking, gas, etc.

Down Payment & Financing

You will need to determine how much cash you can put down when buying your first car, and how much you can afford on a monthly basis if you plan to get a loan. Interest rates favor large down payments and new cars over used cars—but regardless, your budget will be the primary driver in what you can buy.

Auto Insurance

Auto insurance is especially expensive for new drivers. If you have to pay for that yourself, be sure to get a quote from an insurance company or two before you buy the car.

Look into the possibility of being added to the policy of a current driver in your home—your parents, your spouse, etc. You may find that you’ll get a reduced rate, and your policyholder may even be eligible for bundling discounts.

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The process of buying a car can be quite complicated, especially if it is your first time. You may need to take a good look at the whole process and follow it in detail to make sure you do not miss out on any whose skipping may turn fatal eventually. Start from organizing everything on your end, to engaging your lenders, dealer, and any involved other third parties such as the insurance.

Know your dough

Resist the temptation to ride in style and instead stick with a realistic budget that won’t put you in a bind each month. As Money Talks News founder Stacy Johnson says, “Cars are for transportation, not status.”

Arrange financing

Never walk into a dealership without financing already preapproved by a lender. Compare rates you find online with those offered by local financial institutions. You may find that you’ll get the best rate from a credit union.

Do your homework

Assess your needs, not your wants. A two-passenger convertible may be more fun, but it won’t work if you’ll be traveling with a family of four.

Take your prospects for a spin

Head to the dealership or lot to test-drive your top picks. This is your opportunity to see if you and your family will be comfortable in the car, and whether its performance and handling meet your expectations.

Negotiate the sale price

As we said, a car salesman will focus on the monthly payment, rather than the total cost. Keep your price firmly in mind.

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Dilemma comes in when you are new in the automobile world, and you are caught between a luxurious high-end used car and a middle range brand new one. This is where most people who are buying a car for the first time go wrong and end up regretting a wrong move. It is always advisable to check on priorities or consult whoever can offer you substantial advice if you are not sure on which way to go.

Clearly, there are more cons for the used luxury vehicle than the new non-luxury one. But a decision like this one isn’t completely based on dollars and cents. If that were the case, you wouldn’t be looking at luxury cars at all. We’ve compared the costs of buying new, buying used and leasing, and found that a used non-luxury vehicle would make the most sense.

Take some time to prioritize what you want in a car and weigh the pros and cons. ultimately, you will be the one driving it and making the payments on it. Cars are also emotional purchases, so if the used luxury car makes you feel good, go for it. With your eyes wide open, buy the car that makes you the happiest &mash; even if it wouldn’t be the right choice for someone else.

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