Buying your first car can be a very exciting phase of your life, for sure, but you’ll also want to consider what’s involved so you don’t make any costly mistakes. In this brief first car buyers guide, you’ll discover some handy tips to consider before making a purchase.
#1 – Should You Buy a New Or Used Car?
Chances are high that you might decide to buy a used car as your very first car. This decision will likely depend on your budget. There are obvious advantages to buying a brand new car, as you get a warranty. You also get to experience the pleasure of being the first person to own and drive that new car. On the downside, a new car is going to cost more, and as soon as you take possession of it, the value of the car will drop.
Used cars can certainly save you a ton of money, but the main negative to used cars is you never quite know what you’re going to get. Unless the previous owner or owners have diligently kept detailed logbooks, the history of the car is completely unknown. What you don’t want to do is end up buying a lemon that just keeps sucking up money in car repairs.
#2 – Private Sale Or Buy Through a Dealer?
The main distinction between purchasing a used car privately as compared to going through a dealer is the price tag. For a particular model of car, generally, the price from a private sale will be cheaper than what a dealer sells it for.
The advantage of paying a little more through a dealer is they’ll often offer some form of warranty on a used car. You won’t get this with a private sale. Dealers can also help you secure finance for the purchase if you require it.
If you want to buy a new car, then a car dealership will likely be your only option.
#3 – Do a PPSR Check On a Used Car
This won’t be necessary if you’re purchasing a brand new car from a dealer, but if you’re going to buy a secondhand car, you’ll want to perform a PPSR check (previously known as a REVS check). What a PPSR check does is determine if any money is still owing on that car. If there is, steer clear of doing a deal and find a used car that’s free and clear from finance, or you could end up acquiring that debt along with the price you paid to buy the car.
Always be wise when car hunting, especially with used cars from private sellers.
#4 – Have Someone With Experience Go Shopping With You
Whether you’re lining up appointments to view cars through private sales, or you want to roam around the local dealerships and see what’s available, as a first-time buyer, take someone with car buying and negotiating experience with you. If you have a friend who happens to be a motor mechanic, even better.
The reason you won’t want to go it alone is you could either end up spending too much on a car or buy a car that’s going to give you problems. Don’t be too proud to accept some help and advice from someone with more knowledge and experience than yourself.
#5 – Car Loans
Buying a car, especially when it’s your first car, is a major life purchase. Even if the plan is to buy a good quality used car, chances are you’ll need to borrow at least some of the money to do the deal.
Your first Car Loan shouldn’t be a scary experience. So long as the car you’re buying is a good one and you shop around for an excellent deal from a lender for a first-time Car Buyer Loan, you’ll have nothing to worry about. Just make sure you can cover the monthly repayments, have insurance, and you’ll be good to go.
If you want to learn more about Car Loans with very fair interest rates and terms, get in touch with the team at Cashify. Ask us anything you want to know. We’re always happy to answer all of your questions.
Disclaimer: Please note this content is of general nature only and does not take into account your personal objectives, financial situations or needs. For advice tailored to your financial situation, it is advised that you seek guidance from an accountant or financial advisor. The information contained in this article is correct at the date of publication.