Buying a car for the first time is such an exciting and rewarding experience is a young person’s life. A landmark on their journey to adulthood. Comparable to purchasing a house or getting married. Such an event is a big decision and requires careful thought and planning in order for the process to run smoothly as possible. Often, young adults are so eager to make the purchase that they forget to carefully analyze the pros and cons of each vital decision. Insurance, financing and maintenance are the three largest considerations. The car itself is also important; some may prefer a used vehicle over a new one and visa versa. This article will break down some important considerations for buying a new car, as well as suggest some first time models.
What Specs Are You Looking For: Ideally, your first car should satisfy all of your current vehicle-based needs. Consider fuel consumption if you will be driving a lot in the city, and fuel efficiency if you’ll be driving longer distances. Identify whether you will be carrying several passengers often, or if you will be mostly driving solo. If driving solo, internal space may not be an issue. If you prefer a more practical car, aesthetics may not be a major concern. Research your options for features like cruise control, 4WD, seat heaters, automatic transmission and sunroofs among others.
How Will You Pay: Bank financing and dealership loans are common ways to finance a new car purchase. Such financing requires you to have a reputable history of steady employment, credit history and low amount of existing debt. Credit risk profile will determine your interest rate on the bank loan. Good credit is often rewarded with zero percent financing promotions for a set amount of months and a manufacturer’s warranty.Buying a certified pre-owned retains the benefits of buying new. There will still be a dealership guarantee and extended warranties with lower interest rate.
Insurance: The most common and most lucrative option for first time buyers, is to add themselves on to an existing insurance policy. Such policies may be come from parents or relatives. By adding yourself to an existing insurance policy, you will gain several advantages, including a proof of prior, more discounts, and a low to no down payment. Car insurance companies see first time buyers as high risk, and so you will pay a higher premium. Another option is to purchase insurance alone. When going with this option, ensure to do your research and seek out the best deals available.
Maintenance: Maintenance is the most important characteristic that will determine the lifespan of your car. Ultimately, great vehicle maintenance can be the greatest investment you can make for your car. On a regular basis, you should rotate the tires every5000-8000 km, check the coolant level, check the tire pressure, check the tread depth, check belts and check the oil level. These are the basics that you should learn how to do properly. Also, get all the necessary equipment you will need.