October 1st, 2009
Buying Your First New Car
You’ve been dreaming about it for years and you finally have the funds to make it come true—buying your first brand new car. But it’s going to take a couple steps of financial planning before you retire your old clunker from college and sit in the driver’s seat of your perfect car. Use this easy guide to the car-buying process so you know how to prepare, what to expect, and best of all, know how to get a fair deal on the car of your dreams.
First stop, the Internet: The more information you can gather before you get to the dealer, the more informed you’ll be when you purchase your fancy new car. Focus on educating yourself in three areas: how much you can afford, what vehicle you want with which options, and what a fair price range would be.
How much you can afford will depend on what car and what kind of loan you can get. Since you can’t estimate what kind of APR a lender will offer based on your credit score, you can at least check out car loan APR trends to help you discern what a reasonable rate would be. Also, calculate the monthly loan payments that is within your budget so you know what you are comfortable paying month-to-month.
Research online what kind of car options are available to you so you know what to look for when you get to the dealer and can expect how much it will cost. Go to TrueCar and select the make and model of your car and check off the options you want, down to the color and tinted windows. TrueCar will provide local data on the average price consumers are actually paying for your exact car, so you know the reasonable and accurate price to negotiate with once you get into the gauntlet with the dealer.
Second stop, the car dealership: You’ve got all the information you need, and now it’s time to go to the dealership and drive off with your car. The typical car-buying process goes like this: you’ll take the car you want on a test drive to be sure it’s what you want, put your TrueCar price report to work haggling with the salesman over what you think is a fair deal, the dealer will run your credit report and use your credit score to determine what financing options are available to you, you’ll haggle more over pricing, and then the final blow—you either sign the paperwork and drive away, or you walk away. Be warned, the dealer will still try and sell you warranty packages and car accessories right up until you drive off the lot.
Third stop, the comfort of your driveway: Congratulations! Not only have you navigated the chaotic process of buying a new car, but you made it home safely in your dream car. Now it’s all about maintenance and proper upkeep. Don’t forget to get car insurance on your vehicle right away, change the oil every 3000 miles, get a car wash every now and then, and pay your loan payments on-time, and you’ll avoid any speed bumps along the ever-winding road of car-owning freedom.
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Carmax is always having great deals! they also have a great warranty deal. Plus the people there are super helpful! Just an idea
I think a lot of the time you can get better deals at a used car lot. It would save a lot of money and still get you a good car!
just give me the carfax – lol
its better to buy outright for your first car – learn the resp of having a car first then grad to car pymnts
Instead off buying a new car. Buying a used car would be a better deal if you are buying your first car. As usually, the first time car buyers either have started building the credit or have bad credit and thus they end up getting higher rates on high priced new car.