So you've just finished college and now you're thinking about having your first car. There are countless brand options and models out there, but considering that you're just starting your career, how would you find the car that's best for you? Here are important things to consider when buying your first vehicle:
Credit Rating
A shorter credit history usually means having to pay higher interest and bigger down payment. As a fresh grad, lenders would see you as a bigger risk compared to more financially capable adults. For a more solid credit score, create at least a six-month credit history first and make sure it's all clean when you start shopping for a car. Paying your student loan monthly? This actually has a positive effect on your credit score because this means that you're faithful when it comes to settling your bills; this makes you look more reliable than other graduates without loan histories.
Budgeting
What percentage of your income are you comfortable shaving off for your auto loan? Plan your monthly budget carefully to avoid falling behind your bills. Note that failing to pay your loan on time gives the lender and/or the dealer the right to seize the car back. And even if you're given the chance to reclaim it, you may have to pay some penalty fees. If you consider a 2016 model Subaru from Baton Rogue dealerships, for instance, try asking for a quote or learn about possible fresh graduate loan programs so your math can be more accurate. However, if your lifestyle requires plenty of traveling, consider leasing instead.
New vs. Used
Before, new cars were usually seen as a great deal better than preceding models, but times have changed. Nowadays, even older cars don't differ much from newer models when it comes to functionality and reliability. Pre-owned means that the car is inspected and certified by an authorized entity such as the manufacturer itself so you can be certain that it works just as fine as newer models. You can look for pre-owned cars from reliable Baton Rouge Subaru dealerships and those in surrounding areas like Baldwin Subaru.
Shop Around
Take your time. Seek advice from friends or family members who are good with cars. Read industry reports and credible reviews. Explore your loan options and learn how to negotiate. If you're not comfortable with bargaining, some dealerships allows buyers to correspond online. Most importantly, read the fine print carefully before you sign.
Sources:
Car shopping tips for new grads, NewGradLife.BlogSpot.com
How to Buy Your First Car, CollegeExpress.com
