Student guide: Buying Your First Car
- Sep 23, 2020
Buying your first car is not an easy decision to handle, as it requires a lot of research and struggles to find the right choice, especially for the first time. But if you have valid information, then it is not a difficult job to buy your first car.
If you are finding a new or a used car, you can follow the same rules according to the selected budget you have. Here are some important points that you must consider while buying your first car:
Searching for the right car
Well, buying the right car for yourself needs a lot of research and struggle to make your car buying decision worth it. There are a lot of online websites that give you information about the cars that you need to buy. You can search them according to your desired requirements and they will provide you the best results according to your allocated budget.
Your car buying decision should depend upon your requirements and its use. If you have to travel just a few miles for a job, then a simple car is enough to meet your requirement. But you must consider the safety features before buying a car, as it is the most important thing for your safety.
You must remember that a car is a necessity, not an investment. Its value is depreciated as you drive away from the car after purchasing it. So, your choice matters a lot in this case. Cars like Toyota Corolla and Honda City are reliable cars even in the used condition. So buying these cars is not a bad decision at all if they are well maintained.
How about practicing the driving theory test? This will be a healthy practice to examine your driving knowledge and capabilities.
The most important thing is you must check the history records of the car that you want to purchase through online websites available on the internet. They will provide you the statistics of the car records regarding its theft records, outstanding finances, major repairs, etc. This can save you from any scam related to the car that you are going to purchase.
Examine your car-buying budget
Before buying a car you must analyze the budget that you have to bear after buying the car. If you are rich enough then it is not a big deal for you. However, if you are a student and earning an average income then you must think about the budget that you have to face after purchasing a car. So you must have a clear picture of what you are earning and can you afford the requirements of the car or not.
A car needs fuel to run on the roads and its price fluctuates which can disturb your monthly budget. Moreover, it requires an oil change, engine maintenance, tires replacements, etc. These costs are essential to endure while purchasing a car. If your income is not enough to bear these expenses, then you should save some income or try to get a better job to afford these expenses.
Credit is needed
It depends upon your choice whether you are paying 100 percent cash for the car or you will buy the car on finance. The most important thing that counts in the finance options is your credit score. Your credit must be clean before you apply for car finance.
If you don’t have the credit history, then it is not a problem to create it. You just need a credit card and start paying your bills through it to make a good credit score.
As a first time buyer, you must acknowledge that the finance company will demand an employment certificate from you to confirm that you are employed and can pay the finance amount. Some of the financial institutions offer special discounts for fresh college graduates. Remember, anything that will turn out to be negative on your credit score can eliminate you from the finance program.
Buying or leasing a car?
The option for leasing a car can be beneficial for the students having a tight budget. However, it cannot offer you total freedom of driving at your own will. If you have a leased car, then you cannot switch to another place to live. Moreover, there are limited miles associated with the leased car so you have to follow the limitations.
If you still think that a leasing car is a good option, then you can go for it. If it is not the case, then finance the car. You can get favorable rates of finance by the bank and can enjoy the freedom of drive.
Take your car to home
After going through these basic steps and finding the best-suited car for you, buy it through direct payment or finance it. There will be plenty of cars available when you start your research but your desired car that fits your requirements and allocated budget will be hard to find and needs struggle.