Buying Your First Car: Tips & Tricks

Buying your first car is a huge deal! We are so excited for you. It can certainly be an intimidating experience, especially the first time around. It’s a big investment and hopefully the car will be part of your life for a good long time. We’ve collected some useful tips to help you navigate this major purchase.

1. Figure out what you can afford. The less you spend on your new ride, the more you have left over for everything else. Consider your overall paycheck or money you have to spend. Then subtract any other bills you have now or ones that a new car might bring. This is important because you have to consider things like maintenance, insurance, gas and repairs your car may need in the future.
   
   Once you’ve figured out your expenses and left some room for unexpected expenses, you should have a good idea of what you can spend on your first car. If you’re buying used or leasing, the salesperson may try to up-sell you or try to convince you to buy new. Stay firm with your allotted amount so you don’t overspend.
2. Consider what you actually need. When car shopping, it’s easy to be lured by the appeal of an amazing sound system, a sunroof, or other fancy features. You might want a specific color or the latest technology. But what do you really need? Do your research. Make a list of what’s a must and what’s more of a want. All of these factors can impact the car’s price, so keep that in mind.
3. Do your research. It’s 2020 and there’s so much information available online. You can review rankings in categories like auto type and safety, compare prices, and read reviews from owners on car forums. There’s an abundance of info out there! Research, digest and plan. There are also many places you can actually go to get your car — both online and in the real world. Talk to friends, parents or others you trust about their experience with local dealers or online car-buying sites.
4. Go for a test drive. Yes, online research is great, but nothing compares to actually being behind the wheel of the car.
5. Review financing options. There are tons of options out there, but you may want to stop by a local credit union or other financial institution before heading to the dealership. It can be helpful for avoiding a high-pressure scenario with a salesperson offering you a less-than-ideal loan. Many places also offer loans right at the dealership that are through a partner financial institution. Make sure you ask where the loan originates from, and include that consideration in how you choose to finance your new car. One final note, if you’re under 18, you’ll likely need to have a parent or guardian sign the loan agreement with you, so have that conversation before you start the process.
   
   Make sure you have your checking account set up before you start car shopping so you have access to your downpayment money quickly.

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6. Read the contract before driving off into the sunset. It sounds boring, but it’s extremely necessary. You’ll want to make sure you understand the terms and conditions before signing on the dotted line. You don’t want to accidentally sign for extra features you didn’t want, like tire insurance or an extended warranty. It can help to have a second set of eyes, so feel free to bring a parent or a trusted friend along to review the contract with you.

Good luck and drive safely! We hope you have many happy adventures in the very first car you bought with your own money.