Ten Tips for First-time Car Buyers
It doesn’t matter whether you’re a latest grad with your very first real job or someone other than the prototypical first-time car buyer, the car-buying process is never packed with as much uncertainty as it is the very first time. But no matter how much affection we develop for our high school hand-me-down or skateboard, at some point it’s time to stir on. Being a good first-time car buyer isn’t effortless, but if it’s worth doing — and it is — it’s worth doing well.
To that end, we’ve come up with some tips to help with the process. Very first, a little history: Car buying began in parallel with the very first car sold. And despite credit given to Karl Benz for the automobile’s invention, we’ve not been able to find its first-time buyer. We’re guessing, however, Karl (under a banner reading "Karl’s Very first Cars") unloaded it on an unaware first-timer, very likely a latest technical college grad with more short-term enthusiasm than long-term perspective.
We’ve compiled this list as a Top Ten, more than a little bit like Dave Letterman would compile it — if, of course, Letterman cared about what you drive. (Dave has a petite collection of titillating cars to stoke his fire — along with a racing team. ) Without further delay, a few tips on what to buy, how to buy it and where to buy it.
Ten. Establish a realistic budget
This figure is generally based on what you can afford per month. The ideal is to pay cash, but in most instances when considering a fresh (or just newer) car, the nature of the transaction price often requires the leverage of financing. So, look at your cost of living in all the more significant areas, like shelter, food, health insurance and Glad Hour. Once those are calculated, the remainder could be spent on a car payment, fuel, car insurance and — for cars without a warranty — mechanical maintenance.
9. Know what you can spend monthly
While this may look similar to #Ten, your level of indebtedness is different from your monthly commitment. Neither one — for a first-time buyer — should be out of balance in comparison to your other assets (at this point in your life those assets are most likely limited to your most latest purchase at H&M). If you’re financing, figure $25/month for every thousand dollars that you borrow for forty eight months, and $20/month on 60-month financing. It goes after that every $10K borrowed is $250/month for four years, and $200/month for five. Again, this is the base obligation; insurance, fuel and periodic maintenance are above and beyond this.
8. Establish your transportation needs
We know. Despite our cautionary note, you have short-term enthusiasm UP TO HERE. A MINI Convertible or Fiat Cabriolet may be the car of the moment, but is it going to work for you as a day-in/day-out chunk of transportation? Conversely, you may think you need a minivan or pickup for ALL OF YOUR STUFF, but on those occasions when you’re moving to a fresh apartment or, uh, moving home, you can rent a pickup. Given the cost of fuel, insurance and — in many cities — monthly parking, don’t buy what you don’t need. And perhaps consider renting what you need, only when you need it.
7. Identify and prioritize your wants
This runs a bit counter to the previous peak. The first-time purchase doesn’t need to be your be-all/end-all acquisition, but you should still pay attention to your want list, as this isn’t a process you need to repeat every eighteen months. Better to open up a bit for those things in a car that please you, than to be hit over the head — and pocketbook — with buyer’s regret before you’ve emptied the very first tank of gas. If getting what you want costs $40/month more, spend it — and skip a duo Glad Hours.
6. Do your research (it’s never been lighter)
In that you’re reading this at one of the foremost websites for car purchasers, online research is also intuitive. There is, at this point, an amazing amount of both information and perspective on fresh cars and their late-model alternatives. Once you’ve digested it all, balance it with your gut instincts — or those instincts of someone whose gut you trust. And be proactive; if you see someone with a car you have an interest in — and they’re not doing ninety miles per hour — stop and ask them about their ownership practice.
Five. Locate a convenient dealer
For most of car-selling history (we’re talking to you, Karl) the act of buying a car for the very first time has run akin to getting a colonoscopy for the very first time: Come in, lay down, you’re not gonna’ feel a thing. But despite our almost inherent misgivings, the salesman on the showroom is closer to a normal person than you might think. Most of the abnormal ones — we’ve heard from reliable sources — end up selling something less precious; let your parents worry about them. And while fresh and late-model cars have never been more reliable, they still need attention and that attention should be effortless to access. When weighing a duo of choices — let’s say Mazda3, Kia Soul and Honda Civic — compare dealer locations and, if all other things are equal, showroom environments. We tend to stay away from dealerships where two-thirds of the sales staff is sitting or standing at the front entrance.
With all of the online sources available for your basic research, we believe the importance of the test drive has been marginalized. Virtually nothing is more significant in your decision process than how you feel behind the wheel. And so many variables come into play — seat height, wheel adjustment, steering feel, throttle tip-in, outward visibility, control layout, etc. — that you simply must spend a reasonable amount of time driving the car. And that time should be more than five minutes on someone’s idea of a stop-and-go test route. Take at least half an hour, while attempting stop-and-go, freeway merging and freeway speeds. And if your sales rep — you know, the normal boy attempting to make a living — doesn’t have the thirty minutes, find a time when he or she does, or take the time to find another dealership.
Three. Determine the decent purchase price
Once you’ve determined what you like — and have already established what you can afford — it’s time to arrive at a purchase price. The Kelley Blue Book Fair Purchase Price gives you an accurate idea of what people have paid in your area for the car you have an interest in. A credit union should also be able to provide you with perspective, and may have a contact on the showroom floor. An significant note regarding referrals: Get the referral before taking another salesman’s time for a walkaround and demo. Most of these people work on commission, and commissions are notoriously petite. If you plan on working with a referral, commence with a referral. Ultimately, when discussing what you want to pay, don’t expose a "per month" number; that’s the oldest trick in the book. If you’re thinking you can budget $20K — and you’re looking at a $25K car — tell ’em $20K. You can always work up. while it’s much stiffer to back up.
Two. Secure financing, or know your options
Financing issues are somewhat like the purchase price; there has been an exponential growth in the number of resources. That, however, is mitigated by your lack of credit history or, in an enlargening number of instances, marginal credit history. The last thing you want, however, is to be in a room with an F&I (Finance and Insurance) rep, and he or she is holding all the cards; the deck — if you will — is stacked against you. Better to talk with your credit union, bank or insurance provider (many have the capability and desire to finance your purchase), and line up your financing in advance. You can always go with the dealer option if it’s competitive, but never treatment it as if the dealer is the only money game in town. This is an significant part to get right, so also see our Five Clever Steps to Financing Your Next Car.
We know, the above advice makes buying a car seem like an ordeal, but even those with no interest or passion in a car or truck can — if the process is given half a chance — be stimulated by the sheer multiplicity of options available, and the genuine creativity that goes into today’s automotive menu. With low financing rates and literally hundreds of good cars to choose from, your options have never been better (especially in the "entry-level" category) — and car ownership never more rewarding. Take your time in the process, and you’ll be delighted with the outcome for at least the very first forty eight (or 60) monthly payments.
If you’re looking for affordable joy, check out our list of ten Coolest Cars Under $Eighteen,000. If you skew a bit more toward practicality, see our latest list of ten Best Back-to-School Cars. And if you’re willing to spend a little more for something more substantial, explore our list of ten Best SUVs Under $25,000
Ten Tips for First-time Car Buyers – Kelley Blue Book
Ten Tips for First-time Car Buyers
It doesn’t matter whether you’re a latest grad with your very first real job or someone other than the prototypical first-time car buyer, the car-buying process is never packed with as much uncertainty as it is the very first time. But no matter how much affection we develop for our high school hand-me-down or skateboard, at some point it’s time to stir on. Being a good first-time car buyer isn’t effortless, but if it’s worth doing — and it is — it’s worth doing well.
To that end, we’ve come up with some tips to help with the process. Very first, a little history: Car buying began in parallel with the very first car sold. And despite credit given to Karl Benz for the automobile’s invention, we’ve not been able to find its first-time buyer. We’re guessing, however, Karl (under a banner reading "Karl’s Very first Cars") unloaded it on an unsuspicious first-timer, very likely a latest technical college grad with more short-term enthusiasm than long-term perspective.
We’ve compiled this list as a Top Ten, more than a little bit like Dave Letterman would compile it — if, of course, Letterman cared about what you drive. (Dave has a petite collection of titillating cars to stoke his fire — along with a racing team. ) Without further delay, a few tips on what to buy, how to buy it and where to buy it.
Ten. Establish a realistic budget
This figure is generally based on what you can afford per month. The ideal is to pay cash, but in most instances when considering a fresh (or just newer) car, the nature of the transaction price often requires the leverage of financing. So, look at your cost of living in all the more significant areas, like shelter, food, health insurance and Glad Hour. Once those are calculated, the remainder could be spent on a car payment, fuel, car insurance and — for cars without a warranty — mechanical maintenance.
9. Know what you can spend monthly
While this may look similar to #Ten, your level of indebtedness is different from your monthly commitment. Neither one — for a first-time buyer — should be out of balance in comparison to your other assets (at this point in your life those assets are most likely limited to your most latest purchase at H&M). If you’re financing, figure $25/month for every thousand dollars that you borrow for forty eight months, and $20/month on 60-month financing. It goes after that every $10K borrowed is $250/month for four years, and $200/month for five. Again, this is the base obligation; insurance, fuel and periodic maintenance are above and beyond this.
8. Establish your transportation needs
We know. Despite our cautionary note, you have short-term enthusiasm UP TO HERE. A MINI Convertible or Fiat Cabriolet may be the car of the moment, but is it going to work for you as a day-in/day-out lump of transportation? Conversely, you may think you need a minivan or pickup for ALL OF YOUR STUFF, but on those occasions when you’re moving to a fresh apartment or, uh, moving home, you can rent a pickup. Given the cost of fuel, insurance and — in many cities — monthly parking, don’t buy what you don’t need. And perhaps consider renting what you need, only when you need it.
7. Identify and prioritize your wants
This runs a bit counter to the previous peak. The first-time purchase doesn’t need to be your be-all/end-all acquisition, but you should still pay attention to your want list, as this isn’t a process you need to repeat every eighteen months. Better to open up a bit for those things in a car that please you, than to be hit over the head — and pocketbook — with buyer’s regret before you’ve emptied the very first tank of gas. If getting what you want costs $40/month more, spend it — and skip a duo Blessed Hours.
6. Do your research (it’s never been lighter)
In that you’re reading this at one of the foremost websites for car purchasers, online research is also intuitive. There is, at this point, an amazing amount of both information and perspective on fresh cars and their late-model alternatives. Once you’ve digested it all, balance it with your gut instincts — or those instincts of someone whose gut you trust. And be proactive; if you see someone with a car you have an interest in — and they’re not doing ninety miles per hour — stop and ask them about their ownership practice.
Five. Locate a convenient dealer
For most of car-selling history (we’re talking to you, Karl) the act of buying a car for the very first time has run akin to getting a colonoscopy for the very first time: Come in, lay down, you’re not gonna’ feel a thing. But despite our almost inherent misgivings, the salesman on the showroom is closer to a normal person than you might think. Most of the abnormal ones — we’ve heard from reliable sources — end up selling something less precious; let your parents worry about them. And while fresh and late-model cars have never been more reliable, they still need attention and that attention should be effortless to access. When weighing a duo of choices — let’s say Mazda3, Kia Soul and Honda Civic — compare dealer locations and, if all other things are equal, showroom environments. We tend to stay away from dealerships where two-thirds of the sales staff is sitting or standing at the front entrance.
With all of the online sources available for your basic research, we believe the importance of the test drive has been marginalized. Virtually nothing is more significant in your decision process than how you feel behind the wheel. And so many variables come into play — seat height, wheel adjustment, steering feel, throttle tip-in, outward visibility, control layout, etc. — that you simply must spend a reasonable amount of time driving the car. And that time should be more than five minutes on someone’s idea of a stop-and-go test route. Take at least half an hour, while attempting stop-and-go, freeway merging and freeway speeds. And if your sales rep — you know, the normal boy attempting to make a living — doesn’t have the thirty minutes, find a time when he or she does, or take the time to find another dealership.
Three. Determine the decent purchase price
Once you’ve determined what you like — and have already established what you can afford — it’s time to arrive at a purchase price. The Kelley Blue Book Fair Purchase Price gives you an accurate idea of what people have paid in your area for the car you have an interest in. A credit union should also be able to provide you with perspective, and may have a contact on the showroom floor. An significant note regarding referrals: Get the referral before taking another salesman’s time for a walkaround and demo. Most of these people work on commission, and commissions are notoriously puny. If you plan on working with a referral, begin with a referral. Ultimately, when discussing what you want to pay, don’t expose a "per month" number; that’s the oldest trick in the book. If you’re thinking you can budget $20K — and you’re looking at a $25K car — tell ’em $20K. You can always work up. while it’s much firmer to back up.
Two. Secure financing, or know your options
Financing issues are somewhat like the purchase price; there has been an exponential growth in the number of resources. That, however, is mitigated by your lack of credit history or, in an enhancing number of instances, marginal credit history. The last thing you want, however, is to be in a room with an F&I (Finance and Insurance) rep, and he or she is holding all the cards; the deck — if you will — is stacked against you. Better to talk with your credit union, bank or insurance provider (many have the capability and desire to finance your purchase), and line up your financing in advance. You can always go with the dealer option if it’s competitive, but never treatment it as if the dealer is the only money game in town. This is an significant part to get right, so also see our Five Wise Steps to Financing Your Next Car.
We know, the above advice makes buying a car seem like an ordeal, but even those with no interest or passion in a car or truck can — if the process is given half a chance — be stimulated by the sheer multitude of options available, and the genuine creativity that goes into today’s automotive menu. With low financing rates and literally hundreds of superb cars to choose from, your options have never been better (especially in the "entry-level" category) — and car ownership never more rewarding. Take your time in the process, and you’ll be delighted with the outcome for at least the very first forty eight (or 60) monthly payments.
If you’re looking for affordable joy, check out our list of ten Coolest Cars Under $Eighteen,000. If you skew a bit more toward practicality, see our latest list of ten Best Back-to-School Cars. And if you’re willing to spend a little more for something more substantial, explore our list of ten Best SUVs Under $25,000