12 Tips for First-Time Car Buyers
DCU's vision is that all members achieve financial well-being. We believe that unbiased, detailed consumer education is essential for you to achieve your financial goals. Why are we different? Read it here.
By Remar Sutton & Will from Holland
In the following article, you can find some help and useful tips you might want to read before you start buying a car. You don’t have to; you might want to do it though.
And what if you don’t?
Nothing really… You might blow a couple of thousand dollars, that’s all…
Basically, we’ve got some good news for you, but also some bad. And as you might have expected, there’s more bad news than good.
The good news:
There’s nothing better than getting your first vehicle! It’s a moment you’ll never forget!
The really bad news:
- As a first-time car buyer, you are probably going to pay a lot more for your vehicle, more for financing, and more for your insurance than anybody.
How much more?
During the undercover filming of a one-hour NBC television special, Dateline, we watched a 21-year-old college student pay $9,200 more than she needed to when she bought and financed a $23,000 car. Would that ruin your day?
- As a first-time car buyer, you’re probably going to get the wrong vehicle, or a bad vehicle, or both, unless you’re careful and really smart.
- Finance your first car wrong – for instance, agree to pay more each month than you can really afford – and you can ruin your credit for many years, just as you’re starting to build it. First-time car buyers by the tens of thousands do this every year.
All these fun things may happen to you because you’re young and a first-time car buyer. That may not be fair, but it is the reality of the car business:
- The car dealer’s job is to sell you the car they need to sell at the highest possible price.
- The car dealer’s job is to worry about dealership profit.
- The dealer’s job is to make lots of money on you so that the dealership will prosper.
Which leads us to these handy Car Tips from Show Me. They work whether you join DCU or not!
Show Me: 12 Tips for First-Time Car Buyers:
1. Slow Down! Approach the car buying business like you approach a very appealing new date. You know how careful, even hesitant you can be when you see a fascinating stranger? That attitude works really well when it comes to the car business!
2. Visit the StreetWise website from DCU. StreetWise is our effort to keep you from being taken for a ride in any consumer transaction. StreetWise is our ‘Big Sister’ site, where you can find information on a lot of financially related consumer information. StreetWise also offers an inside look at how cars are really sold and provides you with the tools you’ll need to buy smart.
3. Don’t depend on the seller of a vehicle or vehicle financing to ‘educate’ you about their business. Lots of car people are going to want to spend time with you the moment they think you have money, or have a parent who will help you get your first car. But even the most honest seller can’t really help you. So what’s the message? Don’t even go near a car lot until you’ve done your homework!
