Tips for First Time Auto Financing
Buying your first car is a thrill you only get to experience once. However, you want to be smart about it too. However much high horsepower or ultra-luxury features might tempt you, you want to make sure you finance a vehicle well within your means. Long-term financial success is key. Here are our tips for your first time financing:
- Buy Pre-owned: we recommend financing a used vehicle your first time around. You can get a lot more car for the price when you buy used, and you can get something proven reliable. Certified pre-owned vehicles are always good, as they combined used pricing with manufacturer warranties.
- Get a Cosigner: if you can, secure a cosigner. A lot of people don’t have this option — take advantage of the privilege if you can. A cosigned loan will come at a lower interest rate, meaning you pay less in the end.
- Don’t be Oversold: be wary of all the add-ons the dealer salesperson may try to sell you: extended warranties, theft deterrents, etc. While many of these items are worth the price, some are not. Just keep your wits about you and make sure you don’t end up spending more money than you budgeted to spend.
- Have Fun: while all of our talk about financial matters might get you stressed, remember that this is the one and only time you get to buy your first car. We recommend taking a road-trip with one or two friends as soon as you can — there is nothing so memorable as a good old American road trip.