How To Buy a First Car: Everything You Need To Know
How To Buy a First Car: Everything You Need To Know
Posted on February 19, 2021
If you’re student or young person ready to buy a first car, it’s a time of excitement and nervousness. It’s a big step in life and something every Canadian faces at some point. If can also be a nervous time, especially if you’re also getting your first Campbellville auto loan.
Auto loans might seem complex but they are very straightforward and are nothing to be afraid of. That’s especially true if you work with Campbellville auto loan experts like us!
If you’re planning to buy a first car, here are some tips to help.
Step 1. Set a Budget
The very first thing you need to do before even starting to look for a new car is set a budget. Do this before you go shopping because it’s very easy to get carried away and spend too much.
Knowing your budget ahead of time will help you keep spending under control and keep everything affordable.
Factor in your down payment too. The more you can put down on a car, the better the car you can afford or the lower the loan you’ll need.
Step 2. Get Preapproved for an Auto Loan
If you’re using a loan to help pay for the vehicle, it will help if you get preapproved first. It’s like a dry run that tells you how much you can afford to borrow and how much it will cost per month. You should also see what kinds of interest rates you’ll get too.
Preapproval is not a guarantee of an auto loan. It’s a quick assessment of the average loan amounts someone in your position might get and what rates they might pay.
Preapproval does not impact your credit score as it uses a soft inquiry. Only auto loan applications impact your credit score, which is why we recommend only applying for a loan when you’re ready to commit.
Step. Choose your First Car
Now you have a budget and an idea of how much you could borrow, it’s time to go car shopping. It might help to create a need and want list for your car. List all the things the car must have and a list of things you would like it to have.
This can help with car selection and focus the mind on what the car delivers rather than getting tied up with looks, colour, performance and other less important factors.
Step 4. New or Used When you Buy A First Car?
You can get Campbellville auto loans for both new and used. Which you buy depends on your personal circumstances.
We recommend buying a used car as your first daily driver. If you haven’t driven much before, you’ll likely scratch or dent the car on occasion. Doing that to a used car will hurt a lot less than if you do it to a new car!
Plus, you could get a lot more of your wants with a used model as you can buy a premium car for the same cost as a low end new car.
Step 5. Get your paperwork in order
Once you find the perfect choice, you need to prepare your application. Get together your bank statements, proof of income and employment, proof of address and ID and proof of any savings you might have.
The more organized you are and the more you can prove you can afford to repay the auto loan, the more likely you are to get one.
When you’re ready to proceed, contact Unique Chrysler. Our Campbellville auto loan team will be happy to help, offer advice and help you access competitive car finance.
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