Your First Car.....Private Or Dealer

Your First Car

When the time comes for you to buy your first car you will have to take a few things into consideration.  Do you have the cash to pay for the whole amount of your first car or do you have to finance the car. If you have the cash then you have several options.

After this the next thing you need to look at is your budget. How much of a first car can you afford to buy? You must consider the cost of insurance and general up-keep and the yearly licensing of your vehicle. The cost of fuel is something that you must keep in mind as well.

If you do your homework well and be honest with yourself, you will save yourself a lot of headaches down the road.

Once you are clear on what you can afford according to your budget, it is time to look for the car that fits in your budget. There is no better place to start looking than the Internet. I'm not saying you should buy from the Internet. Just look at your local dealer websites. Most of these sites have a search engine somewhere on their page.  These search engines allow you to sometimes enter the amount you can afford.

If you need to have your first car financed you will need a down payment. Now this is very important.  If you make too small of a down payment two things will happen.  Your monthly payment will be high and you might be upside down in your loan amount.  That means that once you drive your first car of the lot you will owe more than the car is worth. If this happens you risk never having equity in your vehicle until it is completely paid for.

Interest rates will play a big part in the amount you pay each month. Getting a good interest rate is based on many factors. The term of the loan, your credit report, and your age are just a few factors.

If you have enough money to pay cash then you have another choice to make.  That is to by from a dealer car lot or from a private owner.  If you know the private owner it is a safe bet that you know a little bit about your first car.  You probably can get a good deal from them.  If you don't know the private owner you are really taking a risk on your purchase.  If you know a little bit about cars or you have a mechanic that you trust with you when you buy your first car, then you should be alright.  If not, stay away from private owners.

Dealers are little more secure because you generally get some type of warranty if you don't buy as-is.  But dealers mark up the price of the vehicle much more than the private owner would.  This mark up can make the difference in your budget.

Which ever way you decide it is a very good idea to have a mechanic give your first car a look.  Most good mechanic can spot a problem pretty quick.  Just remember that the mechanic has to be on your side to protect you from a sure lemon. Don't take the word of a mechanic that work for the dealer.

Tests drive the auto with your mechanic if possible.  Take the auto on the freeway if possible. Remember you must like your first car in all ways for it to be a good deal.

Well, you have done your homework, your first car fits in your budget, and the mechanic gave the thumbs up so what is next. Just make sure you can get a good clean title.