Whether you are 16 or 40, the experience of buying your first car is one filled with anticipation, excitement and even confusion. There are so many different models of cars on the market you may find you feel lost in the sea of makes and models. The good news is you do not have to be a car expert or mechanic to learn as much as you can about cars. Here are some important things to think about when buying your first car:
1. How much do you have to spend?
2. How many people will drive your car?
3. Are you looking for a compact or larger model car?
4. How much are you willing to pay for gas?
5. Do you need a new car, or will a used car do?
Answering these five questions will help you set the foundation for buying a new car while armed with knowledge. Aside from deciding the make and model car you want, you will have to calculate how much car you can afford on a monthly basis. The biggest mistake first time car buyers make is failing to calculate gas expenditures and expenses they will incur getting routine oil checks or car maintenance.
The best way to calculate the overall expense of owning a vehicle is to:
1. Figure out the base price of the car.
2. Find out what your monthly payment is if financed.
3. Calculate the amount you will spend in gas each month.
4. Calculate your maintenance costs each year.
5. Find out how much insurance will cost you each year.
By calculating these five figures, you will have a better idea about how much to spend on a car. When you buy a new car one of the first steps you will take is securing insurance for your vehicle. Car insurance is a must for anyone with a car, whether a new or used car. Most financed vehicles will require comprehensive coverage. Comprehensive coverage will cover the total cost for replacing a vehicle in the event of an accident. If you do not have to finance a car and can buy it outright, you may be able to reduce the amount you pay in insurance.
Most people however, will have to finance their car, thus you will likely buy a policy offering the maximum amount of coverage. Shop around with various insurance companies when looking for a car to see who can offer you the best price. Just as you would search for the best price when buying a car, you should also shop around for the best deal you can get on insurance.
You may find you can also lower your insurance premiums by buying one model of car over another. Keep this in mind when selecting the model car you want to buy. You may opt to buy a different model based on how much it costs to insure your car.