15 Things to Consider When Buying Your First Car

1. Take Your Time

Maybe if I defile it... (#35/365)

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One of the most common mistakes that consumers make when buying their first car is getting in a rush. Whether buying a new auto at the local car dealer or finding a great deal on Craig’s List, getting into a rush can result in making a bad business decision that one will have to live with for years. Taking a deliberate approach when it comes to shopping around for that first ride can pay off in big ways down the road. Once one finds that perfect ride, take some time to research comparable makes and models of vehicles that are available for sale in the local area to ensure that you are getting the best deal possible. This information can also be used to negotiate a lower sales price or better interest rate depending on if one is buying a new or used automobile.

2. Don’t Rely on the Auto Dealer to Educate

When buying your first car, do not rely on the auto dealer or another third party to educate you about the car buying business. Although these efforts can appear “well-intentioned,” they are typically motivated by the seller trying to close the deal with your auto purchase. Before initiating a dialogue with a car dealership or third party for a car purchase, one should research the makes and models of automobile under consideration for purchase. Similarly, conducting financial research into auto loans to include your current bank and credit unions can pay big dividends when it comes to minimizing the monthly payment for one’s first car. These steps will also help keep the consumer from making a poor decision when it comes to that first auto purchase.

3. Don’t Break the Budget on Your First Car

A big consideration to take into account when buying one’s first car is to watch the budget. Unless you have grown up in a big city like New York or London and are just getting around to buying your first automobile at the age of 30, the odds of damaging the first auto are higher when in one’s late teens or early 20’s. Keeping room in the budget for insurance, filling up the gas tank, and repairs is often overlooked by first time auto buyers, but can be a key to long-term financial success. Similarly, avoid purchasing a $500 or $1000 auto since you will likely end up spending much more than that in repairs over the life of your ownership of the vehicle is another key to success. If going on the cheap, purchasing a less expensive used car from a third party seller will have better odds of long-term success for the consumer.

4. Know How Much Insurance will Cost

Before making your first car purchase, research the potential insurance cost. Many first time buyers do not realize that the difference in buying an inexpensive sports car versus a sedan can result in the monthly insurance bill being almost double. The time to find out about a big insurance bill hit is before making the purchase since these funds can be better used to contribute to the monthly budget or upkeep of the new automobile. Similarly, researching potential insurance breaks such as taking a driver’s education course or getting good grades can provide a needed break in the overall cost of driving one’s first automobile. Every dollar counts when making a life change of operating an automobile for the first time.

5. Make the Most of Your First Big Credit Experience

Many times, buying one’s first car is also the first major experience with obtaining credit. Making a smart decision on this first purchase can have repercussions for years to come for most first time car buyers. As a result, taking the time to do the process right is key on the first automobile purchase. One should always take the time to shop around with both their current bank and others to get the best interest possible on the auto purchase. For many young people, getting a parent to co-sign the first auto loan can pay off in a big way when it comes to seeing a lower interest rate and monthly payment. This also puts the parent’s credit at risk; however, so ensuring the cost of the automobile is affordable becomes even more important in these cases.

6. Avoid Buying the Car on the First Visit

A common tactic with car dealers is to try their best to sell a car on one’s first visit to the dealership. Not only does the salesperson work on commission, but dealerships know that they can make more money if the shopper does not have time to shop around for a better deal. One the dealer knows that this your first car purchase, the pressure to make the purchase will only increase. Even if you have had time to do your due diligence for purchasing the vehicle, at least threatening to walk off of the car lot can result in getting a much better deal than taking the salesperson at their word and not negotiating the purchase price at all.

7. Watch Out for the Spot Delivery Scam

Unfortunately, there are a number of dealerships who make money off of the “Spot Delivery” scam. In these cases, the dealer will send the consumer home with their automobile on the same day thinking the deal has been closed. After several days have passed by, the dealership will contact the purchaser stating that they need to return to the dealership to sign additional paperwork. In many cases, this will consist of resigning loan paperwork at a higher interest rate or a demand for paying additional “up front” monies to close the deal. Many consumers will fall for these tactics. Common methods to help guard against the tactic are to always have another adult with you when purchasing the vehicle and keeping copies of all of the financing and sales paperwork when leaving the dealership with the vehicle.

8. Always have a Used Car Checked by a Mechanic

If your first car purchase is going to be a used car, always have it checked by a mechanic before closing the deal. Unless you are buying the car from a parent or sibling, this will not only help protect against undeclared issues with the vehicle, but it will also help find potentially big problems with the automobile that the current owner may not know about. Even if you decide to complete the purchase of the automobile, knowing what is wrong with the vehicle ahead of time will help consumers make smart decisions with knowing how to budget for upcoming repairs or maintenance tasks that might go unknown until they become big issues.

9. Avoid Automatically Financing with the Car Dealer

For one’s first time car purchase, one of the biggest mistakes that you can make is to simply settle for the car dealer’s financing options. Although it is possible to get a great rate through larger auto financing companies, the lesser-known ones make their money on the backs of consumers. Don’t let your new car purchase be the source of profit for the smaller companies. Most reputable dealers will provide you with a copy of the financing details before you sign the papers. This gives you an opportunity to take the paperwork in to your local bank or credit union and see if you can get a better deal. Not only will you be able to see a better monthly payment, but taking the time to find the best deal will also help you avoid getting scammed by the auto dealer.

10. Watch Out for Add-On Charges

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Most auto dealers do not rely on the sale of your car for their profit. Instead, car dealers rely on the sale of add-ons to maximize the profit that they make on your first auto purchase. In many cases, these add-ons do not provide the true value that car salesmen promise you. For example, buying addition “under coating” for your car used to be a great idea. For today’s automobiles, advancements in technology have made the application of additional undercoating almost un-needed for car and truck owners. One way to combat the high-pressured sales techniques that many auto detailers will employ for new car owners is to do your research before showing up to the dealership. If there is an additional package or option that you would like to include on the auto, then ask for it up-front. If you have issues with saying no, then bring a friend or family member with you for the car purchase to help you say no.

11. Plan Your Auto Purchase Ahead of Time

Before you even thing about showing up at the car dealership, take some time to plan out the purchase. Many a first-time auto buyer has made this mistake and paid a much higher interest rate or agreed to additional add-on packages for a vehicle by failing to properly plan ahead of time. Whether it is shopping for a better interest rate or taking a hard look at the various options available on the make and model of auto you are looking at, taking time to plan will pay big benefits down the road for your new car purchase. Do not let the auto dealers make their profit on your first car purchase by failing to plan out the transaction ahead of time.

12. Make a Deal with Your Salesperson

Most car salespeople have a significant amount of room to negotiate with customers when it comes to the final sales price of your new automobile. The amount of the commission that your salesperson will see does not vary significantly with giving you a break on the final price of the car at many dealerships. As a result, many salespeople will be more than willing to make a deal with you on your first time purchase of an automobile in order to close the deal. Unless you are related to the person selling the automobile to you, always try to make a deal with the person selling you the automobile.

13. Pick Your Automobile Based on Your Lifestyle

If you are not living the “Country Club Life” when it comes time to purchase your first car, then that is likely not the time to attempt to live beyond your means. Many first-time auto buyers make this mistake and do not pick a make or model of automobile grounded in reality. If you are living a middle class lifestyle, then pick an automobile that will not break your budget in the first year of ownership. Not only will this ensure that you have sufficient funds to take care of your new auto, but it will also ensure that you do not over-extend yourself with the first automobile purchase.

14. Always Get a Pre-Approved Loan

Many first-time car buyers fail to look ahead when it comes to the financing of their first auto purchase. By taking the time to shop around and find the best car loan for your money, you will not only save big money on the monthly payments, but you will also find yourself paying less money over the life of the auto loan. Most consumers make the fatal mistake of not looking in to alternative financing options before sitting down with the car dealer. Not only does working out your financing ahead of time save money at the dealership, but it is not uncommon for consumers to be able to play one bank off of another to enjoy the best rate possible.

15. Don’t Buy Your First Car when Desperate

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Many a car dealer has made a nice profit off of a consumer who is desperate to buy their first automobile. Do not let this be yourself when it’s time for that first car purchase. When one feels like they are rushed or have to buy a car, the tendency to not pay a lot of attention to the interest rate or cost of the vehicle is low. If you find yourself finding that you have to buy the vehicle, then it might just be time to walk away for the night. If the deal still seems like a good idea the next day, then go ahead with the car purchase. This technique will help ensure you always make a sound decision when it comes to buying a new car.

Source : www.carophile.com

See Also : How cars could cause data traffic jams

 How to Find and Fix Air Leaks in your Tubeless Tires

 How to wash your car without Water and Scratch

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