How to finance your first car after you have passed your driving test
Have you just passed your driving tests and thinking about buying your own car?
Not sure what car to go for new or old?
Or just want some straight forward adivce about purchasing your very first vehicle?
Buying your first car is a wonderful feeling. You will now have the ability to cruise the open road whenever you want. At the very least, you will be able to cruise the open road when you are not required to show up for work or school! If you are having trouble deciding ona first car to purchase have a look at Carbuyer’s article on the top ten best first cars. If you are looking for your first car, how should you go about financing the purchase?
Pay cash if at all possible
Your first car doesn’t have to be fancy. It should merely be something that is reasonably safe and can get you where you want to go. But you should base your decision on your location and how often you will be diving and the distances you will travel If you are thinking about going to university or buying a home in the near future, you are going to be saddled with enough debt. Therefore, you should do yourself a favour by paying for your first car in cash regardless of how little you have to spend. I bought my first car on ebay. I based my decision on lowest mileage, petrol because I live in London and also I was looking for the smallest car with the biggest boot space, as I play a lot of cricket and go fishing quite alot. So lots of stuff to carry in the back.
Borrow from family members if need be
If you really feel the need to borrow money to buy a car, you should borrow that money from a family member. In many cases, your parents will be willing to sell you their old car for a low price or pitch in enough money to help you buy an inexpensive used car. When you owe your parents money instead of a bank, you will surely get a lower interest rate as well as more time to make loan payments when you are short on cash.
What to look for if you do get a loan from a bank
Those who buy their first car with a loan from a dealer or another lender such as Clydesdale Bank should know what they are getting before they sign any loan or purchase agreement. If you are financing your car, you should:
1) Check your credit ahead of time
2) Get pre-approved before you start shopping
3) Know what you want before you go to the dealer
If you are already pre-approved
for a loan and/or have a good idea about your credit score, a salesman isn’t going to be able to pressure you into buying something you cannot afford. In addition, you won’t feel pressured to accept a loan with a high interest rate.
Owning a car should be a fun experience. Those who are getting ready to buy their first car should know what they can spend, where to look for the best deal and know what to avoid when dealing with an car dealer for the first time. When you prepare ahead of time, you avoid getting stuck with a bad deal for the next several years.
Just passed my driving test so what car should I buy?
What is the best car for a a newly qualified driver? Most people like the car they have passed their driving test in. And this generally is a good choice for a first car because driving instructors purchase their vehicles mainly on running costs including fuel, miles per gallon, reliability, replacement parts costs, mechanic and garage charges. And becuase hey are in their cars for often long periods of time comfort is a big factor. Here is an interesting article by the AA about car running cost and how to choose your first car.