There’s something that just can’t be beat about sliding behind the wheel of the first car that you ever own. It feels like a personal milestone. If it’s your first-time to buy a car, and you want to keep costs low, going for a second-hand model can be your best bet. However, make sure you don’t get tricked into paying for more than you should. Here are some rookie car buying mistakes to be wary of:
Not Doing Your Research
Going to the dealer before you even do any research can doom you to a bad deal. Explore other models and options for cars for sale. Shop around. You might find a better car model to suit your budget and needs instead of your initial choice.
Not Doing the Math
You’ll need to make sure you’re financially ready to take on the monthly payments as well as insurance costs on top of your living expenses. If this is going to bleed your bank account dry, you could consider putting it off or going for a lower-priced model.
Going Over Your Budget
It might sound great to own a great ride, but not if it means you’ll go over your budget. Bankrate says it’s best to have no more than 25 percent of your monthly income for your cars. Going beyond that can put a serious dent on your finances, which is the last thing you want.
Not Having Financing Before You Go to a Dealer
Dealers love to give you car loans because they get a kickback or commission if you get one. That means higher interest rates for you, though. If you want to keep costs low, then make arrangements for your own loan. That’s one way to get the best interest rate on your loan, too.
Avoid these shopping mistakes and you should be fine. Good luck with the search!
