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!
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