3 Car Buying Mistakes To Avoid at All Cost.

Buying a car can be both an exciting and stressful experience depending on how you’re able to handle the process itself. Cars are one of the first significant purchases in your life. It’s a milestone that marks your ability to not only earn significant amounts of money but to be truly capable of managing your finances.

But the path to buying your first car is one that has a steep learning curve. And because of this, there are many who end up making a purchase that does them more harm than good. Mistakes can be costly because in the long run, you can end up dumping more into maintenance than you spent on the car, and sometimes that not enough to save it.

Well, don’t fret, friend. This article is intended to help you traverse that steep learning curve without incident. So, read on and find out what not to do when you’re buying your first car.

Buying a Brand New Car

That’s right. For now, stick to used and you’ll thank yourself later The allure of being first owner is superficial at best and it has no true advantage other than being able to make the most use of the warranty included, but even then, you’ll probably need a warranty. New drivers grind gears, they abuse brakes and misjudge their clearances. This happens to everyone, making these mistakes is the only way to learn the feel of driving.

But it’s going to cost you a lot more. The newer the vehicle, the more value is stripped from it each time you make the mistakes you need to make. Remember that a vehicle is not an investment. It depreciates by up to 40% during the first two years of ownership.

And well, why should you be on the wrong end of the stick on this one? You could score a relatively recent model by buying a used car instead. What’s more is that most modern vehicles come with longer warranties so you’re more than likely to be covered even if you buy your car a few years late.

Failing to Factor in Other Costs

There’s more to buying a car than buying the actual car. You need to take several indirect expenses into consideration. Fuel, maintenance, and insurance fees should all be taken into account. One way to help you mitigate the financial impact of buying a car is to opt instead to apply for installment loans. Installment loans allow you to pay for your vehicle on a fixed period over the course of several months.

These plans often vary from 24 months to 48 months. Naturally, lenders are going to charge different interest rates for varying payment periods, thereby making expenses such as fuel, maintenance, and insurance fees more manageable.

After all, you shouldn’t put all your eggs in one basket.

Financing the Full Price of The Vehicle

While it’s bad to spend all of your money in order to purchase your car of choice, it’s just as bad, if not worse, to spend none of your cash for your vehicle. It may be a nice feeling to drive that car out of the dealership without having to spend any cash, but the moment you do, you’re already behind on your debt.

Taxes and other processing fees are going to get included in your debt and you’re going to owe your lenders more money than what the vehicle is worth. And that’s without factoring in how quickly a car depreciates.

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