Finance Your First Vehicle
Buying your first car can be an exciting time. Regardless of age, having a vehicle grants a person freedom and mobility, creating opportunities for new places to live, work, and visit. Unfortunately, not everyone has enough money to buy a new car outright — especially young adults riddled with student debt. In fact, purchasing a reliable used car can even be an expensive cost to bare. So how does one get around this financial obstacle?
First-Car Purchasing Options
There are three common ways people breakdown new and used vehicle expenses into affordable monthly installments:
- Car Loans: Through major financial institutions, you may apply for an auto loan, which essentially covers the full amount of the vehicle split over an extended period of time. Loan payments are compounded with interest, so this approach costs more in the long-run.
- Dealer Financing: Licensed motor vehicle dealers offer in-house financing plans that serve as convenient alternatives for those who cannot obtain a car loan.
- Leasing: Instead of paying monthly to own the vehicle, you pay as you would a rental. For this reason, drivers are restricted by mileage and other usage policies. At the end of the term, drivers trade-in the vehicle. Some dealerships offer the chance to buy at this point.
What to Look for in a Used Vehicle
Always do your research before signing a contract. Know everything there is to know about your choice of car. You may feel tempted to buy based on looks, features, and other aesthetics, but think about your own driving habits, budget, and needs first. For budget in particular, first-time car buyers must be aware of all ownership costs, including insurance, maintenance, interest, parking, fuel, and many others.
Financing can help reduce the burden of buying a vehicle, but credit often poses a problem for young shoppers. Car loans and leasing require established credit, and young adults have neither a strong credit score nor substantial employment history. This is where the dealership comes in: Companies like Trillium Auto Group offer guaranteed-financing, meaning those with bad or non-existent credit still have the chance to secure an auto loan.
Private Market Concerns
Purchasing through an authorized dealership is safest. On the private market, so many more concerns arise surrounding trustworthiness. Buyers must ask to see vehicle identification numbers, registration certifications, proof of purchase receipts, as well as any vehicle inspection reports. Even with these documents, transactions are never 100% secure.
Trillium Auto Group offers buyers peace-of-mind with detailed vehicle reports and factory warranties. Just because a vehicle is not new does not mean drivers should settle for anything less. Again, this comes down to knowing the market, shopping around, and speaking with various industry experts. Visit Trillium Auto Group today and ask us any questions about financing your first vehicle or improving your state of credit.