Tips on Buying Your First Vehicle
Don’t Let Buying Your First Vehicle Cause a Financial Hardship
If you are young and planning on buying your first vehicle, there are some important tips you should keep in mind. Buying your first vehicle can be a stress-inducing experience for some consumers, but it can also be so exciting for many young drivers that they forget to act conservatively both in their choice of car and their method of financing it. The following advice will help you when you are buying your first vehicle.
Put As Much Down as Possible
It is important to try to make a down payment when you are buying a car. You should aim to make at least a 20% down payment when buying your first vehicle. Without a down payment, it is all too easy to end up eventually owing more on your car than it is worth. If you can’t afford to put a down payment on a car and you absolutely need a new vehicle, then you will have to grin and bear it.
Evaluate Want vs. Need
You should definitely try to evaluate whether or not you need a new vehicle. Do you absolutely need a new car because you need reliable transportation to get to work, or do you simply want a new car because everyone you know is buying one? If you can delay the purchase of a new car until you have a down payment, do so. You can always take public transportation or carpool while you are saving money for buying your first vehicle.
Pay More To Pay it Off Faster
If you take a car loan to finance buying your first car, definitely try to keep your loan duration as low as possible. You will want a comfortable monthly payment, but you definitely don’t want to spend forever paying off your car loan. Try to limit the term of your car loan to about three years. You definitely don’t want to still be paying on your car when the novelty of it has long worn off and you are already excited to buy your second car.
Keep the above tips in mind if you are a new driver and are interesting in buying a car. You don’t want buying your first vehicle to turn into a financial disaster a few years down the road, and the above tips can help avert a potential disaster.