Buy Your First Car
Credit: photo credit: afsheen via photo pin ccBuying your first car can be an exciting time. In today’s economy there are so many different makes and models to choose from. Just about anything you can imagine in vehicles are just waiting for you to come and purchase them. Being new to automobile ownership there are several things you need to know. This information will help make your car buying experience less stressful and ensure that you get the car you want with the terms that you deserve.
Buying Your First Car Tip #1 - Do a Credit Check
Credit: photo credit: madmolecule via photo pinThe first thing you should do before you go car shopping is to do a credit check. By reviewing your credit first; you will have a good idea what type of terms you should be able to get. If you find negative information on your credit report or inaccurate information, clear those issues up before seeking financing. By improving your credit score; you improve your financing options.
Buying Your First Car Tip #2 - Applying for a Loan
Once you have reviewed and corrected your credit, go ahead and apply for your automobile loan. Go to your bank or credit union to seek financing. This way you will already know how much you have been approved for, your monthly payments, and your interest rate. This gives you much more power when you get to the dealership if those items are already in place. Now, just go and pick out the car you want; the rest has already been done.
NCredit: photo credit: Kaptain Kobold via photo pin ccever go to the dealership without financing and answer this famous question “How much can you afford to pay each month?” Whatever amount you tell them, they will make it fit into one of their financing plans. You could end up with the three hundred dollar payment you desire but instead of forty eight months of payments; you now have eighty four months. If for any reason you would need to trade the vehicle in, the negative equity would push that new car payment even higher than it already is. Instead of saying how much you can pay each month, give an amount you want to spend. This puts the odds of you getting a better deal in your favor.
Buying Your First Car Tip #3 - Get a Checkup
If your first car is going to be a used car, have a mechanic check it out before you sign anything. Many people have bought a vehicle only to find out a few days later that there is a serious oil leak or something worse. Some dealerships are good at making a car look great on the outside, but under the hood, it’s a wreck. There may be a small cost to have the car inspected yet imagine the cost if there are additional problems. If the car does have problems, move on to the next car and perhaps the next dealership. You may think that Lemon Laws protect you if you purchase a used car; not true, only new cars are protected in that way.
Buying Your First Car Tip #4 - New Car Warranties
Warranties are used as protection from possible issues with the vehicle. In a new car you will have a warranty of three or more years. With used cars, you sometimes have what is left of the warranty when the car was new or no warranty at all. If the car is sold “AS-IS” you may want to purchase an extended warranty. Should you decide on this type of warranty, make sure it covers everything or at least the major parts of the vehicle i.e., the engine and transmission.
Buying Your First Car Tip #5 - Read the Contract
Finally, make sure that you read your contract carefully. Whatever you and the finance manager have discussed as the terms, is exactly what should be conveyed in the contract. Many people have signed a contract without realizing that the contract stated something different than what they thought it would be. This could cause some serious problems, especially if your original interest rate was supposed to be six percent and then on the contract it’s sixteen percent; there will be a big difference in your monthly payment. Read, Read, and Read to protect yourself and your wallet.
Buying your first car can be a great experience if you do your homework. Making sure that you have covered all of your bases will have you leaving the car dealership with the car of your dreams and a smile on your face. So read this article once more and get out there and GET THAT CAR!!