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Buying your first car is so exciting, but it’s also a huge investment that takes some careful consideration. While you’re no doubt already checking out local dealerships and dreaming of the moment you drive off the lot in your new vehicle, be sure to also plan ahead and learn more about the costs of car ownership. To help you settle on the right time to buy your first vehicle, we’ve written this helpful guide to cover the most important considerations.
Table of Contents
Check Your Credit Score
You’ll need good credit to get approved to buy a car unless you plan on paying for it entirely in cash. A good credit score for first-time car buyers is between 670 and 850. The three major bureaus in the USA are: Equifax, Experian, and Trans Union. For expert tips and advice on making smart decisions when buying your first vehicle, visit Decorator Advice, for guidance and recommendations.
These agencies provide free credit reports to Americans, and you can also call one of these three bureaus to request a free report directly and check your FICO credit score. If you find that your credit is below 670, consider working on raising it before you buy a car.
Consider the 20/3/8 Rule
Use the 20/3/8 car buying rule to consider if you’re in the right position to make a purchase. Can you afford to put 20% of the car’s cost down, pay it off in three years, and spend no more than 8% of your gross annual income on it? If so, then you may be ready. If not, then consider either waiting, buying a more affordable vehicle, or lowering other expenses to give yourself as much financial security as possible.
Consider the Total Cost of Ownership
The average vehicle owner spends $2,299 on auto maintenance each year. Are you financially prepared to pay for car insurance, maintenance, fuel, and any necessary repairs your vehicle may need? Are you financially prepared for a sudden breakdown or emergency repair? Keep these costs in mind as you decide when to buy your first vehicle.
Explore Different Vehicle Models
There are many options available on the market, and it’s important to consider price, cost of ownership, insurance rates, and more when deciding on the right car. Think about factors like fuel efficiency and safety ratings to make sure you buy a model that’s good for your lifestyle and budget.
While you may be drawn to a specific type of vehicle as your first model, it could make more sense to go with a more practical option. Don’t let appearance alone be the determining factor; talk with a salesperson at a reputable dealership to learn more about different models and find out what each one has to offer for the price.
Read Reviews
Before buying any vehicle, make sure you read reviews from reputable sites. You can also look for reviews by actual drivers who own the vehicle. You may be surprised to learn about different features or common issues with the vehicle that you’d like to avoid. Likewise, comparing vehicles through reviews can help you get a better idea of what type of vehicle is right for your lifestyle.
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