First-time car buyers often find themselves in some sort of a bind - they don't know what steps to take. Making such a major purchase is most likely the first step in your financial life, so it is very important to take it seriously.
Word from the cognoscenti - and there is more than a grain of truth in this advice.
Pop quiz, hotshot - time to answer some questions that will indicate whether you are ready or not as a first-time auto buyer. Have a budget ready for your car? You should have one, so create one if you don't. You want to have an idea of what type of vehicle your budget can afford. There are also incidental costs to consider, such as insurance payments which are part and parcel of the typical car purchase. Sometimes, the insurance premiums might cost as much as the monthly payment for the vehicle. Maintenance for the vehicle, gas costs and taxes also should be figured in to your budget.
Have you had a credit report pulled recently? Before transacting with your dealer, it's always prudent to have a copy of your credit report requested for free to see where exactly you would stand.
Have you shopped around? Of course you may have another make in mind, but the point is, you have to do some research, probably the most important thing you have to do overall. Talk options with your credit union or bank. Compare dealerships. Print out all quotes and keep them in a folder that you bring with you when you shop for the car. Whether you finance through your dealer or elsewhere, there are typically no penalties to refinance if you're not satisfied.
Do you have an idea how finance charges work, and how they are computed? To put it briefly, auto financiers take several things into consideration when determining your finance rate, and these would include your credit score, the price of the vehicle you are interested in buying, your options for repayment and the overall length of the contract signed thereof. In most cases, you would be presented with a negotiable rate.
If you may need a co-signer, do you know of anybody who can be of help? A co-signer would be mandated in the following circumstances - if you are below 18 years old, if you currently do not have any employment, do not have existing credit history or if your credit history has a lot of negative blemishes on it.
Can you differentiate leasing and financing? Is APR the fourth calendar month or some other strange acronym? Credit insurance a foreign word to you? Is the only GAP you know the brand of clothing? You need to educate yourself on these terms and understand the value and price of aftermarket products. Don't be coerced into signing a document you are not comfortable or familiar with.
We regret to inform you that if you answered in the negative to at least one of these questions, then it's back to the drawing board before buying your first car or truck. It's a harsh reality, but if you're just learning the ropes financially, you will need to be well-educated on what it takes to purchase a vehicle before you actually buy one.
Word from the cognoscenti - and there is more than a grain of truth in this advice.
Pop quiz, hotshot - time to answer some questions that will indicate whether you are ready or not as a first-time auto buyer. Have a budget ready for your car? You should have one, so create one if you don't. You want to have an idea of what type of vehicle your budget can afford. There are also incidental costs to consider, such as insurance payments which are part and parcel of the typical car purchase. Sometimes, the insurance premiums might cost as much as the monthly payment for the vehicle. Maintenance for the vehicle, gas costs and taxes also should be figured in to your budget.
Have you had a credit report pulled recently? Before transacting with your dealer, it's always prudent to have a copy of your credit report requested for free to see where exactly you would stand.
Have you shopped around? Of course you may have another make in mind, but the point is, you have to do some research, probably the most important thing you have to do overall. Talk options with your credit union or bank. Compare dealerships. Print out all quotes and keep them in a folder that you bring with you when you shop for the car. Whether you finance through your dealer or elsewhere, there are typically no penalties to refinance if you're not satisfied.
Do you have an idea how finance charges work, and how they are computed? To put it briefly, auto financiers take several things into consideration when determining your finance rate, and these would include your credit score, the price of the vehicle you are interested in buying, your options for repayment and the overall length of the contract signed thereof. In most cases, you would be presented with a negotiable rate.
If you may need a co-signer, do you know of anybody who can be of help? A co-signer would be mandated in the following circumstances - if you are below 18 years old, if you currently do not have any employment, do not have existing credit history or if your credit history has a lot of negative blemishes on it.
Can you differentiate leasing and financing? Is APR the fourth calendar month or some other strange acronym? Credit insurance a foreign word to you? Is the only GAP you know the brand of clothing? You need to educate yourself on these terms and understand the value and price of aftermarket products. Don't be coerced into signing a document you are not comfortable or familiar with.
We regret to inform you that if you answered in the negative to at least one of these questions, then it's back to the drawing board before buying your first car or truck. It's a harsh reality, but if you're just learning the ropes financially, you will need to be well-educated on what it takes to purchase a vehicle before you actually buy one.
About the Author:
When you're looking for cheap auto repair shops Apex, try Vital Automotive. We offer the best in automotive repair and diagnostics. Our rates are competitive, with no hidden fees.
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