Create a reasonable budget. This number is generally determined by your monthly budget. Consider your living expenses, including your mortgage or rent, food, insurance, and social activities. After these costs are deducted, the remaining funds could be used for a car payment, gas, insurance, and maintenance.
Visit your credit union to get financing pre-approved. Visit your local credit union prior to falling in love with a vehicle you may not be able to afford. Their lenders can get you pre-approved for financing at an affordable rate that complements your lifestyle. In addition, you'll know exactly how much you can spend, giving you more negotiating power at the dealership.
Do your homework. Gather some information before you begin shopping, as well-informed consumers make wiser decisions. Consumer Reports, Edmunds, and Kelley Blue Book provide valuable vehicle reviews and pricing information that can assist you in determining a fair price for the automobile you desire.
Perform a test drive. Nothing influences your decision-making process more than how you feel behind the wheel. Spend at least a half-hour performing stop-and-go, freeway merging, and freeway speeds during your test drive. Take the time to locate a different dealership if the salesperson is unavailable.
Bring a companion with you to the dealership. Always prefer working with a partner. They can help you decide which vehicle to purchase and how much to pay.
Discuss your price. Price negotiation is likely the most intimidating aspect of purchasing a vehicle, but you must adhere to your strategy. If you have conducted sufficient research, you will have a good idea of whether the dealer's offer is reasonable. Remember that the dealer's initial offer is rarely their best price, so do not be afraid to reject it. If the dealer cannot meet your desired price, you should leave. Buying a car is a significant decision, and the transaction must suit your needs.
Buyer beware. Before signing the final contract, request an explanation of each item from the dealer. Dealers have been known to add unnecessary extra fees for services such as ""fabric protection,"" ""paint sealant,"" and ""rust proofing."" If you are uncomfortable with certain charges, do not be afraid to point them out.
Additionally, first-time buyers should avoid financing offers that sound too good to be true. As a first-time buyer, you may not be eligible for promotions such as """"0% dealer financing""""
Above all else, enjoy the process. We recognize that the aforementioned tips can make purchasing a car appear daunting, but with low financing rates and hundreds of vehicles to choose from, you have incredible options (especially in the first-time buyer category). Take your time as you move through the process, and you will be amazed by the result.
Buying a car for the first time can be a fun and stress-free experience with a little forethought, a solid negotiating strategy, and the right financing."""