6 Common Mistakes To Avoid As A First-Time Car Buyer
Buying your first car is a big step in life. It signifies a significant shift towards a greater degree of freedom and independence. However, buying a vehicle for the first time isn’t always as straightforward as some people would like to think it is. Thus, many people end up making mistakes. Today, we’ll go over some of the most frequent traps beginner car buyers often fall into.
Buying An Overly Expensive Car
The benefits offered by a vehicle can be stripped away fairly quickly if the monthly payments are so high you can barely afford them. When shopping around, it’s important to determine how much you can comfortably afford. It’s even more crucial that you stay within that figure.
Is your dream vehicle slightly out of budget? Financing may help. However, keep in mind that first-time buyer auto loans can carry high interest if you don't have an established credit history. Moreover, you may consider looking at a 1st-time car buyer program to get the best deal possible.
Settling For The First And The Best
You may find yourself so eager to purchase the first car that you end up choosing one before shopping around. It’s important to visit several dealers in your area and look online to build a list of possible vehicles that fit your budget and needs. A first-time auto loan is a long term commitment, and there’s no guarantee you’ll be able to sell the vehicle if you decide that you don’t like it a year or two down the road.
Letting The Dealerships Trick You
Although most used-vehicle salespeople are good and decent, their reputation for not always being entirely honest isn’t always undeserved. First-time buyers are often vulnerable and may be easily convinced by a pushy salesman to purchase a vehicle they don’t like or can't afford. In addition, taking out an auto loan you can’t afford is easily one of the most common car loan mistakes.
Not Reading The Fine Print In The Contract
Understanding the dealer's financing agreement is an integral part of purchasing a vehicle. Failure to do so can result in surprise fees you may not have anticipated and is one of the most common car loan mistakes committed by first-time buyers.
Not Considering Buying A Used Car
Buying a brand new vehicle is usually not the most financially prudent decision. When you buy a new car, its value drops quickly, meaning you’ll be paying top dollar for a rapidly depreciating asset.
When deciding what cars are good for first-time buyers, it’s smart to look at both new and used vehicles. In most cases, those who weigh the pros and cons of both will ultimately decide upon purchasing a used vehicle.
Furthermore, a new vehicle will typically require a larger down payment and come with higher monthly or bi-weekly payments, making them prohibitive from a financial perspective.
Buying A Car Based On Looks
Just because a vehicle looks flashy doesn’t mean it’s the best choice. There are several, arguably more important, factors to consider than looks, the most important of which include:
- Full efficiency: Although a slick looking sports model may be aesthetically appealing, it’s likely to result in a much higher monthly gas budget
- Reliability: Some fancy looking vehicles are known to require a high degree of maintenance to keep them on the road. First-time buyers should consider a car’s reliability based on make, model, brand, and year
- Safety: According to the Insurance Institute For Highway Safety, nearly 40,000 people die each year in auto accidents. When considering a vehicle for purchase, you should always take its safety profile into account
- Cost: A nice looking car can easily persuade first-time buyers to purchase out of their budget. Once you set a price, you must stick to it