Buying your first car is an exciting step, but it can also be overwhelming and stressful, and it is never as fraught with uncertainty as the first time. If you take the time to do a little research before visiting dealerships, your first car buying experience can be a lot less stressful and a lot more fun! Being a good first-time buyer won’t be easy, but if it’s worth doing, and it is, it’s worth doing well. We have created some tips to help with the process.
Set a realistic budget. This figure is generally based on what you can afford per month. Look at your cost of living: mortgage or rent payments, food, insurance, social activities. Once they are calculated, the rest could be spent on a car payment, fuel, insurance, and car maintenance.
Visit your credit union to get pre-approved for financing. Before falling in love with a car that you may not be able to afford, go to your local credit union. Your lenders can get pre-approved for financing at a great rate that suits your lifestyle and budget. You’ll also know exactly how much you can afford, giving you more bargaining power at the dealership.
Do your research. Informed shoppers are smart shoppers, so you need to gather information before you start shopping. Resources like Consumer Reports, Edmunds, and Kelley Blue Book offer helpful vehicle reviews and pricing information that can help you determine a fair price for the car you want.
Take a test drive. Nothing is more important in your decision process than how you feel behind the wheel. Give yourself at least half an hour on your test drive, as you try to stop and go, merging onto freeways and freeway speeds. If the seller doesn’t have time, take the time to find another dealer.
Take a partner or a woman to the dealership. It is always better to work with a partner. They can help you decide which car to buy and what to pay for.
Negotiate your price. Price negotiation is probably the most overwhelming part of the car buying process, but it is important that you stick to your strategy. If you’ve done your research, you’ll have a good idea whether the dealer’s offer is fair. Keep in mind that the first dealer price is rarely the best price, so don’t be afraid to decline the initial offer. If the dealer can’t meet your target price, walk away. Buying a car is a big step and the transaction should be right for you.
Buyer beware. Before signing the final contract, ask the dealer to explain each item to you. Distributors are known to include additional charges for items such as “fabric protection”, “paint sealer” or “rust protection” that may not be necessary. If there are charges you are not comfortable with, don’t be afraid to point them out.
First-time buyers should also be wary of financing deals that sound too good to be true. Offers such as “0% dealer financing” may sound Okay, but as a first time buyer, you may not qualify for these attractive specials.
The most important thing is to enjoy the process. We know the tips mentioned above can make buying a car seem overwhelming, but with low financing rates and hundreds of cars and trucks to choose from, your options are incredible (especially in the first-time buyer category). So take your time as you go through the process and you will be amazed at the result.
With a little advanced planning, a solid negotiation strategy, and proper financing, buying your first car can be a fun, stress-free experience!