Buying your first car can be a substantial purchase for many individuals, especially young people. If you are uninformed about financing and credit matters, then we suggest you have a look at these tips before purchasing your first wheels.
Table of Contents
Avoiding A Car Lease
When you visit a dealership, the salesman is going to show you some models which fall out of your price range. It is in the nature of their profession to try and upsell customers and will try to convince you why a lease makes more financial sense than purchasing the car. Leasing can be highly tempting, particularly if you have your heart set on a vehicle, and the monthly cost seems lower than a purchase. However, it can be more costly in the long run since you’ll have to pay for periodic maintenance on a leased car in addition to the dealership charging you for excess mileage or any damages to the car. When the lease has come to its full term, you will have not an asset to show against the thousands of dollars you have spent.
Opting For A Used Vehicle
Nothing compares to the smell of a new car with a sparkling paint job and brand-new seats, but the value of the car will decrease as soon as you start driving it. New vehicles depreciate substantially during the first five years of ownership. To find the best deal when viewing cars for sale, it pays to look at cars that are older than five years since it will still have the safety features and tech that you are necessitating, and it will be the more economical choice as opposed to a new car.
Considering Alternate Financing
Most graduates prefer taking out an auto loan on their vehicle, with many opting for a dealer’s lender. However, many third-party financing companies offer a more affordable choice. If you have pre-existing savings or cheque account at your bank, ask them about auto loan options on offer. It’s always a good suggestion to do some research on at least two or three different lenders before signing the paperwork.
Reading The Contract Thoroughly
Any time you buy a vehicle, you are entering a binding and legal agreement with the seller, irrespective of where you purchased it. That’s why it is crucial to read through the terms of the sale and familiarize yourself with the details in the contract before signing anything. Be vigilant about additional features added into the car purchase like tire insurance or an extended warranty that you don’t necessarily want to be included.
Getting The Vehicle Inspected
It’s worthwhile to have the car inspected by a trusted mechanic. When a dealership refuses an impartial inspection, it is a definite red flag. Even if the vehicle appears to be in top shape, you don’t know what is hiding underneath the hood.
Negotiating The Best Price
Irrespective of who you are purchasing the car from, whether a friend or dealership, it is worth negotiating the best possible price since it can shave off a few thousands of dollars of the initial price, and in most cases, you’ll be saved from overpaying.