Car shopping can be as overwhelming as it is exciting, especially when it’s your first time. There is a lot to learn, to say the least. Taking a realistic look at the car buying process will inform you about how to narrow down what you’re looking for – and avoid an impulse purchase that won’t be pragmatic or affordable in the long run.
Would you rather buy through a private seller or an established dealership? Do you have a preference for new or used vehicles? The process will be slightly different depending on these and other factors. Take your time doing a proper search and you’re more likely to be happy with the results.
Determine How Much You Can Afford
Do you have a certain amount of money saved up for your new set of wheels? You’ll need to do a bit of math to see how much that dollar amount translates to the sticker price you can afford. For example, it’s necessary to consider the added financial cost of a few other things:
- Sales tax
- Auto insurance
- Updated title and registration
- Routine maintenance
- Gas
Not only do these expenses add up, but there may be unexpected items such as necessary repairs. To be on the safe side, set aside some of your funds so that you’re making a purchase you can realistically afford over time.
Figure Out What Type of Vehicle You Want
There are dozens of car models and brands to choose from. So how do you know which one is right for you? Since everyone has unique desires and expectations out of a vehicle, this is one area where each buyer must put in a little time and research to figure out which model will match their needs.
To get started, narrow down the type of vehicle you would consider:
- Compact
- Sedan
- Sports utility vehicle (SUV)
- Truck
- Hatchback
- Hybrid or electric vehicle (EV)
Do you transport equipment for work or prefer something smaller for better mileage and easier parking? Families with children often opt for something with a bit more space in back, but someone on a budget can save money by getting a fuel-efficient vehicle or an EV.
Apply for a Loan
Perhaps the most complex aspect of car shopping is determining how to finance the vehicle. Most people who buy a car must apply for a loan. This involves a financial contract that spells out the conditions for paying it back. There are several steps in the process, which often include:
- Determining your budget
- Prequalifying for loans
- Applying through multiple vendors
- Being accepted for a loan
- Selecting favorable loan terms
Take some time to figure out the process and you’ll become a pro in no time. Bankrate outlines auto loan rates for both new and used vehicles to help first-time buyers. Other online resources such as Investopedia break down the financing process in simple terms so that inexperienced buyers can make more informed decisions.
Read Contracts Carefully, Negotiate Prices & Take Your Time Making a Purchase
It’s important to test drive any car you’re considering buying, so shoppers should know what to look for while taking each vehicle out for a spin. And don’t ever sign a contract out of pressure. It’s crucial to understand the details of a given contract before making a commitment.
Finally, it’s common practice to negotiate a better deal. Be prepared to ask for a lower price, and know what you’re willing or not willing to pay. You can take an offer home with you and have a more experienced person help you look it over to ensure the terms are favorable to you.
Get Help with New Car Title, Registration and Other Needs at CFSC Auto Services
Once you’ve purchased your dream car, there are a few remaining tasks to take care of. Let CFSC Auto Services help you get it registered so that you don’t risk getting a ticket. We can help with a whole range of items:
- Get your license plates
- Replace stolen or lost stickers
- Transfer your plates
- Take care of other auto-related needs
Stop by your nearest CFSC location to find out more about our convenience financial services today!