Purchasing a car is an important long-term investment. If it is your first time buying a car, there are many things you will need to take into account before purchasing.
These five tips can help guide you in the process of preparing to buy a car.
Know your credit score
Your credit score will be a huge determining factor in if you are eligible to be approved for an auto loan. Know your score ahead of time to see what kind of loan you can qualify for.
Lenders will use your score to if you will be approved and what your interest rate will be set at. It is important to know what you score is before applying and knowing what to expect.
Set a budget
Before searching for your perfect car, make sure you set a budget for yourself for something you can afford. You do not want to agree to pay more than you can afford and risk hurting your credit but not paying or late payments.
Make sure you take the time to sit down and look at your income, bills, and expenses to determine what you can and cannot afford.
It is important to note that you will have other expenses like gas, car maintenance, and auto insurance. Make sure you budget for these expenses as well when deciding what your price range for a car will be.
Do your homework
Make sure you take the time to research the car you are wanting to buy. Check online to view reviews and reports from consumers that own the same car. You should also take some time to check which options and features you are looking for in your next car.
There is many sources you can use to find this information. To be safe, make sure you have a few cars in mind to compare.
Try to get pre-approved
Applying to be pre-approved with multiple lenders is an excellent way to prepare for buying your first car. This gives you the option of seeing what various lenders will offer and choosing the best deal for you.
Try to get pre-approved with your bank or credit union first. If this is unsuccessful, you may find that going to a large dealership could be beneficial. They are signed up with various f different lenders and may give you a better chance of getting approved.
Decide whether you want a dealership or private seller
When buying your first car, you have the option of either going to a dealership or through a private selling. There are pros and cons to both of these options, so make sure to do your research before deciding what is best for you.
Dealers can be beneficial when it comes to taking care of the paperwork. They will usually offer better financing since they are signed up with multiple lenders. They also have a good selection of cars for you to choose from. Although, a private sale may give you a better price.
A private sale requires you to have to take care of the paperwork and all the details. Although you may be able to get a better price with a private seller, you are at higher risk without the legal protection that usually accompanies dealerships.
First time car buyers may benefit more going to a dealership as they will be better protected. Dealers will typically go above and beyond for consumers and strictly follow all abiding laws accompanying purchasing a car.
Buying your first car can be a complicated process. If you are looking to buy a new car but have less than perfect credit, CrediReady can help.
Our nationwide network of trusted dealers and verified lenders work with buyers in all credit situations. Take a moment to fill out our free no-obligation loan inquiry form and start shopping for your dream car today!