You may currently be leasing a car and you’re ready to take the plunge and purchase your first vehicle, or perhaps this is your first car altogether. Whatever the case may be, buying your first car can be very exciting, but it’s also a decision that should be made carefully.
New vs. used
One of the first things to consider when you’re buying your first car is whether you want new or used. They both have their advantages and disadvantages, with the biggest advantage of a used car being its price. Depending on your budget, you may be able to afford your dream car if you buy it used, but in the end, you may be better off purchasing a new vehicle. It really depends on your transportation needs, the type of car you want, the features that are most important to you, and what you can afford.
Private seller or dealership
If you decide to buy a used car, you’ll have the option of purchasing one from a dealership or a private seller. Although a private seller may be able to offer you a better deal, purchasing from a dealership will often come with other benefits that a private seller cannot offer.
Go for a test drive
Before deciding on a vehicle, be sure to go for a test drive first—or several. This can really help you get a feel for the car and help you determine what’s the right fit for you. Some dealerships will even let you take a vehicle with you for the day if you need extra time to think things over.
Check your credit score
If you’ll need an auto loan, be sure to check your credit score first to see where you stand. You may need a bigger down payment and/or a co-signer in order to get approved.
Because you’re a first time car buyer, you won’t be trading in a vehicle to put towards your purchase. As such, you’ll need to save up the money for your down payment. Alternatively, you may want to consider saving up enough cash so that you can just purchase your first car upfront and without taking out a loan. This may be the only option depending on your credit, but even if you are eligible for a car loan, buying your first car in cash if you can, will set you free from monthly car payments and potentially high interest rates. Instead of having that debt hanging over your head for the next few years, you can potentially own your first car free and clear by saving up what you need.
Pick something practical
It can be easy to get caught up in the excitement of buying your first car. Don’t make an impulse purchase that you’ll soon end up resenting. For example, if the car you’re considering frequently needs maintenance and/or expensive parts, or if you drive a lot and the car you’re thinking about is a gas guzzler, you may want to reconsider.
Whether you need money for a down payment or you’re looking to purchase your first car with cash, Peachtree Financial Solutions may be able to help. If you’re receiving long-term structured settlement or annuity payments, we can buy some or all of them from you and provide you with a lump sum of cash. For more information and for your free quote, contact Peachtree Financial Solutions today.
Nothing above is meant to provide financial or tax advice. You should meet with appropriate professionals for such services.