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Buying a car for the first time is an activity that is accompanied by a mixed bag of emotions. On one hand, it is an exciting prospect as you begin to imagine how you are going to drive it around town and show your friends what you have got. On the other hand, you are anxious because you are not very sure of how to go about it and especially when you are yet to decide the particular spec you should go for.
You however don’t have anything to be worried about because this article will enable you to have a good grasp of vital information that every first time car buyer needs in order to be able to make quality decisions in their bid to lay hands on credible and worthwhile first time car buyer deals as well as first time car buyer credit.
Tips for a first time car buyer
In order for you to be able to have a hassle free process in buying your first car, there are some things that are very important that you really need to consider. They are discussed below in details:
Leasing vs. Owning
Another issue that first time car buyer face is whether they should go for leasing or they should go for owning the car once and for all. They both have their advantages and disadvantages.
Advantages of leasing a car
Below are some of the benefits of leasing a car:
- Access to latest model: Leasing a car enables you have access to any car of your choice and enjoy the latest technological advancement that comes with the car.
- Tax savings: You will pay much lesser in tax when leasing a car in comparison with how much you would have paid when you buy the car.
- More savings: In contrast to buying a car, leasing a car enables you to spend lesser than you will have paid when buying a car. The resultant effect of this is that you will be able to spend money on some other things that are of priority at the moment.
Disadvantages of leasing a car
Below are the downsides of leasing a car:
- Excess wear charges: It is virtually impossible to return the car without some degree of wears, you will have to pay for this and this will accumulate into a significant amount of money in the long run.
- An excellent credit score is required: Not so many people qualify for a car loan because an excellent credit score is a requirement.
Advantages of owning a car
Below are the advantages of owning a car:
Once and for all payment: Once you are done with paying for the car, you don’t have to worry about monthly installments again.
No wear charges: You own the car and does not have to worry about incurring extra wear charges, it is your car after all.
No credit score issue: Unlike leasing a car, owning a car does not require an excellent credit score.
Disadvantages of owning a car
Below are some of the downsides of owning a car:
Expensive: In comparison with leasing a car, owning a car is definitely more expensive.
Tax: Owning a car attracts higher tax unlike leasing a car.
Unpredictable depreciation: Owning a car means you are at risk of your car suffering an unpredictable depreciation especially when you have the intention of selling it later.
Negotiating like a pro
A very important skill you need to acquire as a first time car buyer is the ability to negotiate as a pro. When some salesmen finds out that you are buying a car for the first time, they tend to exploit that and make more money than they ought to make from your ignorance. You need to be deliberate about acquiring the ability to negotiate like a pro.
A very key part of acquiring that skill is to ensure that you are not ignorant about anything involved in getting the car from the negotiation process down to the current price of the car as well as what is generally obtainable in the market. Hence, ensure you do some researches before going ahead to buy the car.
Ensure you also get your car from a credible dealer. Find out about the dealer before you trust them with your money because failure to do this may result in frustration in the long run because you may be ripped off of your hard earned money by a dishonest dealer.
First Time car buyer deals
When you are ready to buy a car for the first time, don’t act like a lot of first time car buyers who think all there is to buying a car is to look for the best model, spec or color. Those are not the only things you should be concerned about. There are some other important things you also need to consider which will decide if you will end up regretting or proud of yourself in the long run.
Being on the lookout for the car that perfectly suits is important, also equally important is being on the lookout for nice deals or better still, nice car loan. You need to get an auto loan that will be of good interest rate that will not be difficult to pay back especially in case you don’t have enough fund to buy the car out rightly.
This is not as difficult as many people think at all. As a matter of fact, you can get a car loan from your local bank or credit union. This avenues are better than the ones available with dealer financing. When you don’t go through dealer financing, you will have a higher negotiating power and will be able to reduce the cost at which you would have bought the car if you do it otherwise.