There are a lot of things to pay attention to when purchasing your first car. Most first-time car buyers are teenagers or college aged adults with little or no credit under their belt. This may sometimes be a problem, but generally should not cause major problems.
The first thing to do is look at your budget before you even start shopping around for your dream car. A good rule of thumb is to try and pay off your car loan in 48 months. Otherwise the loan time is too long and paying it off may not be achievable. Cars depreciate in value and if you want to sell it, you dont want to have to sell it for less than you have left on your loan. Also put into your budget gasoline prices, oil changes and other mild and random repairs that will be common and frequent. If you cannot afford these little extra expenses, do not buy a car. Make sure that you understand all of these things before purchasing a car.
Also when you start looking for a car, find out your credit score ahead of time. Car dealers are known for being dishonest for a reason. If you are unaware of your credit score, how will you know if they are telling you the truth or being honest with you? If you know your credit score than it is less likely that you will get scammed.
Dont forget that you can shop around a bit too. You do not have to purchase the first car that you see is for sale. There are many different ways to shop for a car that it is important to find what fits best for you. It could be a newspaper ad, online, or going to a dealership. By shopping around you will avoid purchasing a car for one price and then seeing an ad for the exact same car at a lower price the next week. Take your time and do your research. Find out what cars run better or have better performances than others.
Another important thing to find out is if you need to have a co-signer. If you are under 18 or have little or no credit history, than you will most likely need to have a co-signer. This is not a bad thing and it will actually help you establish credit in the long run. Make sure that the loan officer still puts you down as the first person and that the other person is just a co-signer.
Also, when you are discussing things with financial managers, make sure you know all the terms and new words that they use. If they talk about APR, leasing, financing or warranties, know the difference and the definitions. Educate yourself on all the terms beforehand so you will not be tricked into something you didnt understand. There are many important details to look into when purchasing a car for the first time. Just make sure you are covering all the issues and not rushing into anything.
