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As a first-time car buyer, you're in for an exciting experience, but the process can be
intimidating as well. Do your research. Be prepared. When you're well-informed, you
are more likely to make the best decision for yourself. There's nothing quite as sweet
as getting a driver's license as a teenager. But there's also nothing quite as
disappointing as learning how difficult and costly buying a car can be.
You have to feel for teenagers, they can't wait to be an adult. But if they only knew the
costs and responsibilities that will arise, they may never transition into the adult world.
Teenagers and college graduates looking to buy their first cars have plenty of
obstacles to conquer. Here's are just a few of what the average young adult can
expect when they try to buy their first auto.
Sticker shock
After being watching car commercials all of their live most young adults can't wait to
get the vehicle of their dreams. But the average minor doesn't have the money saved
up to THE car, especially when the insurance was not calculated, or gas, or a down
payment which are all factors in the car buying equation. The best way to take a loan is
for no more than 48 months and with 20% as a down payment. If you take the loan for
longer than you are setting yourself up for problems down the road
Buy used, buy wisely
the logical choice for a young adult is a pre-owned vehicle. The vehicle being used
could have mechanical issues. So your best bet is to buy a extended service contract.
Buy the contract with premier coverage to over as close to the factory bumper to
bumper warranty as possible. Also make sure you get a Carfax* from your selling
dealer, know as much of the vehicle history as possible.
Establish credit
There are very few lenders willing to take a chance on a first time buyer who doesn't
have a credit score. If you do not have any bills that you pay on, say a credit card, you
are considered a ghost. Which means you do not have a credit score. If you want to
get a car loan, you will need to establish a credit history. Just simply get a credit card
with a small credit line (500 dollars). Pay it on time for 6 months and a favorable credit
score will be established.
By following these tips, you can steer clear of most financial trouble that can come
with buying a car. Good luck!
intimidating as well. Do your research. Be prepared. When you're well-informed, you
are more likely to make the best decision for yourself. There's nothing quite as sweet
as getting a driver's license as a teenager. But there's also nothing quite as
disappointing as learning how difficult and costly buying a car can be.
You have to feel for teenagers, they can't wait to be an adult. But if they only knew the
costs and responsibilities that will arise, they may never transition into the adult world.
Teenagers and college graduates looking to buy their first cars have plenty of
obstacles to conquer. Here's are just a few of what the average young adult can
expect when they try to buy their first auto.
Sticker shock
After being watching car commercials all of their live most young adults can't wait to
get the vehicle of their dreams. But the average minor doesn't have the money saved
up to THE car, especially when the insurance was not calculated, or gas, or a down
payment which are all factors in the car buying equation. The best way to take a loan is
for no more than 48 months and with 20% as a down payment. If you take the loan for
longer than you are setting yourself up for problems down the road
Buy used, buy wisely
the logical choice for a young adult is a pre-owned vehicle. The vehicle being used
could have mechanical issues. So your best bet is to buy a extended service contract.
Buy the contract with premier coverage to over as close to the factory bumper to
bumper warranty as possible. Also make sure you get a Carfax* from your selling
dealer, know as much of the vehicle history as possible.
Establish credit
There are very few lenders willing to take a chance on a first time buyer who doesn't
have a credit score. If you do not have any bills that you pay on, say a credit card, you
are considered a ghost. Which means you do not have a credit score. If you want to
get a car loan, you will need to establish a credit history. Just simply get a credit card
with a small credit line (500 dollars). Pay it on time for 6 months and a favorable credit
score will be established.
By following these tips, you can steer clear of most financial trouble that can come
with buying a car. Good luck!