Your First Car

davidsapper
Apr 5, 2014
2 min read

We frequently run into customers buying their very first car. They come in alone or with friends and family looking to make their very first vehicle purchase become a reality.

A customer that buys a car for the very first time encounters some unique situations that typically do not impact buyers that have purchased multiple cars. Budget concerns, vehicle choices, financing, insurance and negotiating are all new territory for this consumer.

The very first thing a first time buyer needs to do is to balance the vehicle they want with their budget limitations. Typically, a first time buyer needs a more inexpensive vehicle and interest rates are higher than a consumer that has purchased multiple vehicles. A common mistake is to buy too much car. Most first time buyers are younger and do not have the creditworthiness to justify a low interest rate and have to deal with higher insurance rates.

Once you have found a vehicle that meets your needs and falls into your budget, the next step is financing. For a first time buyer, getting a co-signer is your best option. It allows someone else to "vouch" for you and can get you a much more reasonable interest rate. If you cannot aquire a co-signer then the dealership is your best bet. Without some estabilished credit, getting your own financing can prove to be very difficult.

The next big issue is insurance. It's typically much more expensive for younger people and people that have never had insurance before. This is where you really have to take your time and shop around. Insurance rates vary drastically from company to company and the only way to insure the best deal is to get many different quotes.

The hardest part for the first time buyer will be the negotiation process for the car purchase. Without knowing how the system works, many first time buyers can fall victim to predatory dealerships. Make sure you do plenty of research on the prices you are willing to pay for the vehicle, the dealerships online reputation and your credit situation, BEFORE you visit the dealer of choice.

After all these things are met, your final step is to sign all the documents. Read everything carefully. Make sure that the terms are exactly what you agreed to. Be highly suspicious of any products that are "included" in your purchase, they may have been rolled into your purchase price without you even noticing. Pay special attention to the contract itself.

If you follow all these steps, you will be in an amazing position for your first car purchase.