Things to Consider when Buying a Car

Long before most people turn sixteen, they are dreaming of their first car. How to decide which to purchase can be a challenge and there are many factors to consider.

The first thing that needs to be considered when purchasing a car is the cost. A car is usually the first major purchase that a young person will make and should be carefully considered. If someone is able to save prior to shopping, they may be able to pay cash for their car. However, if it is not possible to pay cash for the car, they may need to pursue financing.

Financing may be available at the dealership, however, it may be a cheaper option to pursue their financing at a financial institution. Interest rates at a financial institution is usually less than 5%, while at a dealership, the interest rate is likely closer to 10%. When securing financing, the buyer should make sure that the fine print is what was discussed with the financing agent.

Once financing has been pre-approved, it is time to decide how much room will be needed. If the person buying the car is young and has no children, then a small economy car may be more than enough room. However if they are a little older and thinking of starting a family in the near future, then it may be more economical for them to purchase a car that will hold a small family. This small step will save them time and money once they begin adding to their family.

Insurance is something you need to remember. What will you monthly payment be? Well you should add that on top of your loan payment to calculate a total monthly cost for the car. I’ve used companies like Cheap Car Insurance or Esurance to find the cheapest car insurance even for more costly vehicles.

Now that size has been considered, the next step is to decide what features they are looking for. When considering features, it is important to know what is required and what would simply “be nice to have”. During this time, the buyer will also want to decide if they are looking for a brand new car or if they can purchase a used car. Everyone is different in this area because some people will drive a used car without any hesitation, while others will absolutely not drive a new car, no matter what the cost.

The final decision for a car buyer to make is what color to buy. While car shopping, the buyer should remember to enjoy the process, but also to pay close attention to what is said so they make sure that they understand everything that they are getting.

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