What I Wish I Knew When Buying A Car
Buying a car or any big purchase is a BIG deal. Don’t let anyone tell you otherwise, especially when its your first big purchase on your own. I went through the car buying experience and was both prepared and unprepared when it came time. I want to share the things I went into my car buying experience with and also the things I wish I knew now looking back. Remember everyone’s situation, finances and dealerships are unique and different.
Do Your Financing Research
This is huge! Unless you’re buying your car in full which isn’t very common it’s important to know what your credit score qualifies for when it comes to financing, what the car you’re wanting to buy financing looks like and what you will be paying at the end of the day in interest. Keep in mind every car will likely have a different percent which is up to the dealer, model and bank you’re taking a loan from. If you are buying a car that is HIGH in demand then you likely will not be able to find 0% or a lower percent (my car for example). Be aware of what the percent you’re walking into looks like, you’re not only buying a car but also paying the percent on top of the car purchase at the end of the day with the interest which can add anywhere from $1,000 to $10,000+ on top of the car depending the loan percent and duration of the loan and when it will be paid off.
Look At Your Options
When buying a car you don’t want to settle. This is a big purchase and whether you’re buying your dream car or just a car to get you to and from work it’s important to know the cars history and the competitors out there. Do your research, talk to family and friends that understand the lifespan of a car and test drive, research and compare prices.
Go In With A Good Credit Score
A good credit score will be HUGE when going to buy a new car. This is what the banks will be looking at when deciding to lend you the loan and approve you for the purchase. Depending on your credit score it will make the process very seamless. A little tidbit I learned when doing my car buying was my credit score was in the top 10% of those approved and at one of the youngest ages (Near 795 at age 23). The dealership also recognized how important a good credit score is and how seamless it made my process.