Financial Advisor

Published on March 23rd, 2021 | by David Jackson


5 Things to Consider for Your First Car Loan

So, you have decided that you are going to get your own car? This is usually an exciting experience, but it can also be a bit intimidating. There are many decisions, and often a big commitment. Some people take on a little more than they can handle with their first big loan, and it is possible to pay too much, and to feel pressured into buying more car than you need. The best advice is to take your time, do a lot of research, and don’t let anyone pressure you into something you don’t want. There are millions of cars out there and good deals pop-up every day. Here are a few things that you should be thinking about when you start making choices.

  1. Understand Your Financial Situation. Work out how many fixed costs you have every month and how much you spend in a normal month on food and entertainment. Is there much left? That is where your car payment is going to come from. Check out that has information to help you work out payment, term lengths and financing options.


  1. Weigh Your Needs Over Your Desires: Unless you are doing specialty driving, every vehicle does essentially the same thing, it takes you from point A to point B. The rest of it is mostly for show. The advertisers and the car industry would like you to think differently, but the truth is an economy car is just as good at getting you to work in the morning as a luxury car. It is up to you how much that image is worth.


  1. Get the Car Checked Out: if you are getting the car from a private seller, it is a very good idea to have a mechanic check it out for you. This will cost you a little, but it has the potential to save you from a big mistake.


  1. Do Good Research: Don’t just go to a couple of dealerships or follow up on one or two ads. Make it a mission to find out how much the type of car is likely to cost. The more you know about a particular model, the better you will be able to spot the good deal when it comes. Next, you want to research financing options. Don’t be afraid to phone around and ask lots of questions. There are good deals to be had, but you must seek them out.


  1. Check Insurance Rates: before you pull the trigger and sign some papers, make sure you also know what you will be paying for insurance. Just like with the financing, there are a lot of options, and there is money to be saved if you do your research.

Buying your first car is a lot of fun, but there is some work to go with it too. It would be an excellent idea to bring along someone who has had some experience to help you make your decision. But make sure you get the car that is right for you. Until it is time to sell, that car will be your wingman through a lot of life experiences.


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