Buying Your First Car: 9 Essential Tips

A recent study suggests that there were approximately 289.5 million registered cars in the United States by the end of 2021. America loves its cars and the independence that comes with traveling wherever you want, whenever you want.

Buying your first car seems like a rite of passage for some Americans, especially in areas where public transportation is limited. It is just the beginning of a lifetime of journeys. However, buying a new car is a big decision, and there is a lot to consider.

Do not make any final decisions about buying your first car until you finish reading this article. Here are the nine things you need to know.

1. Determine Your Budget

This comes first because the last thing you want to do is find a car you love but cannot afford. Your finances will determine a lot about which kinds of cars you can shop for with your first car, including the year and mileage.

While a brand-new car is nice, when it is your first car, a used one may suit you just fine.

For a rough guideline, the cost of the car you buy should not be over 20% of your annual income, pre-tax.

It is more than just the price tag of the vehicle, too. You must consider additional expenses such as gas, insurance, and maintenance.

2. Determine Your Needs

Buying a new car is a tremendous decision, so take your time. No need to rush because you could end up with buyer’s remorse. Think carefully about what you need.

When it is your first car, it is possible that you may need something to take to work, school, and even a college dorm. You may need to haul some belongings back and forth, or trips to the laundry mat.

Where will you go in your car? Do you want something small with good gas mileage, or big and sturdy for carrying hefty loads? When you buy a car, it is important to be practical and realistic about what your needs are.

3. Research Loans

Once you settle on the car you want and understand what the cost will be, shop around for a loan. You do not have to take a loan from the first institution you get rates from. It is important to put as much down as possible, too, and finance only what you must.

This doesn’t rule out dealer financing, though. They may give you the best deal. Click for more information on the best loan auto rates.

4. Create a Shopping List

Whether you are considering a used car, a new car, or both, start a list. Carfax car listings are a wonderful resource to determine what types of cars are in your price range. Get to know the brands and models so you can compare them as you shop.

5. Shop For Insurance

Once you have a shopping list of cars, you can gather a shopping list for insurance. Get quotes. The cost of insurance is based on many factors.

If you are looking at a type of car that is coming up as high in terms of insurance, that could be a red flag, and take that model off your shopping list.

6. Take a Test Drive

If you do not drive much, this could be overwhelming. It can also be overwhelming if you must test drive a lot of cars. For the specific cars, you want to test drive, make appointments.

While you test drive, be comfortable with the mirrors, seat adjustments, and technology features. Envision what it would be like to drive it every day.

Make sure everything in the vehicle works and take notes about each test drive, including likes and dislikes.

7. Get the Car Inspected

One of the best car-buying tips you can get is to have the car you want to purchase inspected by a professional. Especially if this is your first car, it is vital to take this advice. If you do not have a long-standing history of driving, it’s challenging to spot problems on a test drive or just by looking at the vehicles.

All you need to do is tell the seller you want an independent mechanic to inspect it, and have it inspected before you buy it.

8. What to Bring When You are Ready to Buy

Once you have decided, you will want to arrive at the table with the proper preparations. This includes a driver’s license, insurance information, and financing information. Also, you will want copies of the state’s sales and registration documents.

When choosing to buy a car from a private seller, proceed with caution. You should choose a public place when potentially closing a deal.

9. Don’t Rush

A new car or a used car is a big purchase. It is an investment into something that will bring you joy, provide you comfort, and should keep you safe during your travels.

You do not want to walk away with regrets. You want something that will suit your lifestyle. Therefore, there is no need to rush a decision, but take your time. Get it right.