Buying your First Car: Guide for Students

Buying your first car can be a very exciting experience. You’re never quite sure about what factors are more important and it’s very easy to get distracted and tempted by big words thrown at you from various car salesmen. If you’re buying your very first car chances are you are in University or just graduated high school. Buying a car for the first time is one of the most important milestones of a person’s life. In my book; it’s right up there with graduation and marriage. Make sure that you make the right decisions and don’t end up with a gas guzzler that makes you pay for it for the rest of its life. Shop around on Carsales and get an idea of the sort of car you want.. Whether you’re buying a new car or a used one, there are some factors that must be taken into consideration.

Establish a Budget

It may be tempting to get the newest model of your dream car, but keep your monthly budget in mind. How much can you afford to pay monthly and still pay off your bills comfortably? Some necessities are more important. Prioritize your spending. Opt for a cheaper car if your budget can’t stand the strain. The best way to begin is to begin with the math. Account for deductibles such as food, health insurance, bills and rent. Assign the remainder for costs that you will incur monthly on the car such as the payment, fuel and car insurance.

Credit is the golden ticket

The jury is still out on whether college students should get credit or not, in this case it might not be such a great idea. If you already have a credit history, it’ll probably be a very short one. In any case however, building credit is not a very difficult task. Make sure that you stay away from the temptations of reaching the upper limit. If you’re interested in building credit, start with a credit card from the bank or a local gas card. Make sure to stay away from store credit cards which generally have a very high interest rate. Although surprising, your student loan will actually come in handy at this point. If you have been punctual in your payments then your credit history will contribute positively towards your credit standing. Your credit history and score will basically determine how reliable for an investment you are.

Be informed

Information is your most important weapon when it comes to purchasing a car look for consumer reviews online and read up on the specifics of the cars that you’re interested in look for reliable places online which help connect the buyer and the seller of the car. Try to start off with low maintenance and low cost cars which are dependable. Sometimes a car can be much more than what you expected.

If you’re skeptical about the car that you’re looking to buy, go for a test drive and see for yourself. A car purchase is large expense which needs t be considered extensively. Take your time and don’t be hasty.

Student-Finance.com.au is not a credit provider and does not act as a intermediary between any credit providers. This website does not provide Financial Product Advice or deal in the sale of any financial product. If you require this service it is recommended to seek the help of a professional. You should consider your own specific circumstances before making any Financial decision.