Here are some words of wisdom for buyers who are actually paying for a car for the first time:
For a first buy, choose a car within your means. A good indicator of whether that car is within your means or not is the percentage you can pay as down payment. If you can pay 20 percent of the car down, then you avoid getting upside down on the car value. Upside down means that the debt you owe on the car is more than the car is worth.
As a first time buyer, you should also be on the lookout for competitive new car price quotes. Many web sites can help you in your research, and may save you thousands.
If you can't pay off the car within 48 months, then that car is probably out of your reach. If you just finished college then there is a chance you are saddled with loans as well. You don't want to owe money on a car and loans for the next 6 years.
Safety and dependability matter more for a first car when every penny needs to be scraped together. If you're looking at used cars, be wary of scams. A vehicle history report on any used car you consider is an absolute necessity, even if it does cost you around $30. You should also probably have a mechanic check the car on a lift.
No such thing like a buyer's remorse grace period exists in reality. If you buy it, and then decide you don't want it, you can't return it.
Other common barriers to buying a first car include:
-Credit history, or the lack thereof
-Car salesman scenting fresh blood
-High insurance rates for younger people, particularly teens because they're so accident prone
-Insurance for males under 25 is also very costly
-Maintenance upkeep and overhead costs such as insurance, oil changes, new tires, brakes etc. will now snap at your savings
You can't avoid all of those things. However, waiting six months to a year to establish some credit can save you money in the long run if you can get a lower interest rate when taking out a loan. Remember that lenders will not approve any loan on a car that is over 5 years old.
Common sense should dictate that when buying a first car, even if it isn't your dream car, at least buy one that you like.
Ask plenty of questions before buying your first car. Ask people more experienced than yourself such as friends, family, teachers or coworkers. Learn the process. You will likely have to buy another car at some future date, so take the opportunity to learn.