 Buying Tips: First Time Car Buyers
Posted by carsandtrucks on Monday, November 05 @ 13:13:26 PST
Most first time car buyers are either high school or college students.
This means there are some challenges they will face when buying their first car. Due to the average age of first time car buyers credit, or the lack of, will be a major hurdle. There is no sense in even shopping for a car that you can not pay for unless you have established credit of have a co-signer. Co-signers are someone that will put their name on the loan application next to yours. You have a moral obligation to the co-signer to make sure your payments are made and are made on time.
Should you be late with payments or default on the loan, not only are adversely effecting your credit you are hurting theirs as well. If you are able to secure credit for a car purchase, do not sign on for a term longer the 48 months. Longer terms mean lower payments but they also mean you can quickly put you in a negative equity situation. In simple terms this means
you owe more on your car then it is worth because so much of your payment is for interest and not pricipal of the loan. My best advise for first time car buyers is buy something you can pay cash for. Naturally, you won't be buying a late model or new car but you won't be saddled with payments you have trouble making. Keep in mind there are other cost associated with owning a car. There is insurance, maintenance, repairs and fuel cost. These are not insignicicant amounts of money. Make sure you have researched the total cost of ownership before you get in over your head. Buying your first car is an exciting time. If you take the time to do smart, it won't turn into a nightmare.
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