There are moments in your life you don’t ever forget. Buying a home, your first child, and getting your hands on your own car are examples of those moments. However, there are many things to consider when buying a car. It’s not just about finding one that fits your budget. You also must ensure it’s safe, reliable, and fits into your lifestyle. As a first-time car buyer, you may wonder, “What should I consider when buying a car?” or “How do I get started?”.
Before these questions overwhelm you, read on to learn six mistakes to avoid before buying your first car. Avoiding these mistakes will help you make an informed decision.
1. Choosing the Wrong Car Type
When buying a car, it’s important to consider your lifestyle and needs. If you have children and plan on using your vehicle as their main mode of transportation, buying an SUV or minivan may be more suitable than an economy car. Also, if you frequently travel for work or pleasure, owning an SUV or truck might be a better option than a sedan. However, a sedan may be best if you don’t have children or travel often. If you’re unsure what type of car best suits your lifestyle, it might be worth researching before deciding.
2. Not Knowing Your Credit Score
A high credit score means you’re more likely to be approved for a loan and may even qualify for a lower interest rate. Conversely, a low credit score could result in being denied a loan or being approved with a higher interest rate. That’s why it’s important to know your credit score before applying for financing. You can also consider a credit union for your car loan. Learn more about the best credit unions for auto loans by clicking here.
3. Failing to Consider the Total Cost of Ownership
The total cost of ownership (TCO) is the sum of all the costs associated with owning and operating a vehicle over its lifetime. TCO includes fuel costs, insurance, depreciation, maintenance, and repairs. When considering which car to buy, it’s important to look at the TCO to better understand the true cost of ownership. You can use an online TCO calculator to help estimate the total cost of ownership for different vehicles.
4. Not Doing a Test Drive
You wouldn’t buy a pair of shoes without first trying them on, so why would you buy a car without test-driving it? A test drive is essential to see how the car feels and if it’s a good fit for you. When test driving, pay attention to how the car accelerates, brakes, and turns. Also, ensure the seats are comfortable and the car has all the features you want.
5. Forgetting to Budget for Taxes, Fees, and Insurance
Don’t forget to factor in taxes, fees, and insurance when budgeting for your new car. These costs can add up quickly and affect your monthly payments. In some states, sales tax on a new car can be as high as 10%. Additionally, registration and title fees can range from $100 to $400. And lastly, don’t forget about insurance. Insurance rates will vary depending on the make and model of your car, but they can be expensive – especially if you have a teenage driver.
6. Failing to Check For Deals and Offers
You might be surprised to find there are deals and offers available when buying a car. Many automakers offer cash-back incentives or low-interest financing. And some dealerships offer their special deals and discounts. Be sure to ask about any deals or specials that might be available.
Final Word
Purchasing a car is a big decision, but it doesn’t have to be daunting. You can shop for your first car confidently by avoiding these mistakes. Do your research, know your budget, and don’t be afraid to negotiate to get the best deal possible. Good luck!
