Graduating from college? First-time, car-buying tips
When you graduate from college, it usually signals the first time you're on your own, for housing arrangements, insurance and even transportation. It's not always easy to figure out how to manage adult independence right away. In fact, you're bound to encounter a few learning experiences along the way.
But when it comes to buying a first car on your own, you don't have to start the process completely in the dark. Here are a few tips for buying your first car:
* Can you afford to buy a used car or new? For many college grads, a steady income allowing you to purchase a car outright doesn't always happen immediately after college. And your savings might be nonexistent. But you may qualify for used car loans that would help you finance a purchase from a dealer or even a private seller. Used car prices are typically much lower than new, and may fit into your budget better.
* Factor in additional costs you will have to pay for the model you're interested in. Some items may include: Auto insurance; a parking space for your car, gasoline and even your state's licensing tags.
* Carefully review the car you're planning to purchase. If you're buying a used car, have a mechanic you trust review the vehicle to make sure all parts are in working order. And also do your online research. Read the reviews about the manufacturer, brand and model. You can also purchase a vehicle history report that will provide you with information like the number of previous owners, what states the car was located in and if the car was in an accident.
You'll likely run into many other questions along the way, so be sure to ask your family members about their previous car buying experiences. Your fellow graduates may also be looking for purchasing a first car themselves, so team up with them to share research resources and answers to questions.
Remember, rarely is a first car a dream car, but if it can get you to your planned destinations safely and not eat up too much of your income, you've probably found a great deal.
