The Complete Guide To Buying Your First Car

| February 16, 2016 | 0 Comments

Everyone has to make some important financial decisions in their life. They’re unavoidable; there’s no way around them. One of the biggest financial decisions will be buying your first car. For many people, this is the most expensive thing they’ve bought in their life at that moment. Lots of money goes into buying, and running, a car, so you better be prepared. To help anyone out, I’ve come up with a short guide to buying your first car:

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Finding Your First Car

The first thing on your mind will be the car itself. What will your first car be? As we all know, there are tonnes of different cars out there for people to buy. These cars come in various shapes and sizes and differ in price. To narrow down your search, you should create a budget. Decide how much money you’re willing to pay for the car, and then look for ones in your price range. This immediately gets rid of any higher priced vehicles, making your job easier. If you’re wondering where you can find cars, there are loads of sites online for you to use. These sites are so easy to navigate, and you can see a range of cars in an instant. It’s much easier than going out and walking around a handful of car dealers. By doing it online, you get more choice and are allowed to sit back and have a cup of coffee as you browse.

New Or Used?

Should you buy a new or used car? This is a question that everyone will ask when they’re looking for their first vehicle. There is no right or wrong answer; it depends on the person. But, your answer to this question will help narrow down your search even further. There are some advantages/disadvantages for both car options. Buying new means, you get a brand new car, with new technology, and there’s no worry about previous owners treating it wrong. But, buying used means you can get cheaper cars and can negotiate the price. For some, the savings you can make by buying used will be more important that driving a new car. Then again, others like buying new because you know you’re getting a vehicle that won’t break down and have any past issues.

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Financing The Car

Now, we move onto the financial side of things. Many people think that buying a car is easy, you just hand over the cash and everything is completed. And this is how a lot of car deals go down, especially online ones with used cars involved. You find a used car, travel to the person who owns it and agree on a price. After a bit of negotiating, you hand over the cash and drive away with your first car. It’s a simple way of doing things, but it’s not the only way. Some dealerships will offer multiple finance options to help you afford a car. If you don’t have enough to pay for the car in cash, you can get a car loan. You’ll pay a small deposit and then the loan will make up the rest of the cost. Then, you drive away with your car and pay off the loan via a payment schedule. Other dealers will offer car leasing options too. This is where you essentially rent the car for a set amount of time. You pay monthly, then when your time is up, you give the car back and get a new one. Figure out which finance option suits you, and then buy your first car!

Insurance

You might think that your work is done once you’ve bought the car, but you’re wrong. Even after you’ve purchased it, there’s still more money that needs to be spent. All drivers must buy car insurance before they can drive their car. If you drive an uninsured vehicle, then you’re breaking the law. Get pulled over by the police, and you’ll be in very big trouble. So, to avoid that, go out and buy your insurance. Prices will vary depending on certain factors. The car you drive will be a defining factor, so will your age and gender. Then, you have different providers offering different prices. Your best bet is to reach out to various providers and get some car insurance quotes, then see which one is the best for you. Once you’ve decided what one you’ll choose, you’re ready to buy your insurance and get it out of the way.

Vehicle Registrations

After you’ve bought car insurance, you’re one step closer to driving your new car. The final hurdle comes in the form of vehicle registration. All vehicles must be registered to the owner, and you need a certificate to prove this. The cost of registration will differ depending on the state you’re in. Sometimes, the fee is fixed, other times it depends on your car. Some states will charge you more to register a bigger, heavier, vehicle. This registration fee must be paid annually if you want to continue driving your car legally. Now, you’re finally ready to get on the roads.

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Fuel Costs

Sadly, the money spending doesn’t end after vehicle registration. You still have to spend a lot of cash on your new car. The main thing you’ll be splashing out on is the ongoing fuel costs. Your car needs to be filled with fuel for it to run. The more you drive, the quicker it runs out, meaning you need to top it up. Spending money on fuel can be very costly, which is why it’s a good idea to drive economically. Driving economically can help you save fuel, and not have to top it up as often. Of course, you could buy eco-friendly hybrid cars that use electric power as well as petrol engines. This will also limit fuel consumption and help you save money.

As you can see, there’s a lot that goes into buying a car. It may not be as simple as you first thought. However, with this guide, hopefully, you understand how to do everything and will be driving around in your first car very soon!

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Category: Car Loan

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