Buying your first car is a major rite of passage. It may not be the first car you’ve driven, but it could be the first time you’ve been able to consider a vehicle that is tailored to your personal desires and tastes, rather than one chosen by a concerned parent or guardian. Instead of focusing solely on affordability, practicality, and safety, first-time buyers can also explore aesthetics that appeal to them and features they desire.
While the prospect of a new car is exciting for most first-time buyers, it’s important to be realistic about budgets, needs, and wants. Sure, a new Aston Martin may be more enticing than a Ford or Toyota, but it’s important to be realistic about what we can afford.
Our advice to first-time car buyers is essentially the same as for any car shopper: Before setting foot on a dealer’s lot, thoroughly research and gather all the information you can. Here are a few things to consider as you embark on your first car-buying journey.
Should You Buy New or Used?
Who wouldn’t want a brand new car? New cars come equipped with a plethora of fancy new technologies and a full warranty. However, used cars have their advantages as well. You can find used cars in great shape, often at a much lower price than new ones. If you want extra peace of mind, you may even consider a certified pre-owned (CPO) car that comes with a manufacturer’s warranty and other benefits.
If you can find a low-mileage, well-maintained used car, it could really work to your advantage. Not only is the car more affordable, but you also don’t take as much of a hit from depreciation when you decide to part ways with it.
Ways to Buy a Car: Lease Versus Buy
When you lease a new car, you’re paying for something in the moment, but not building equity. Most people don’t like this, but we’ve got a slightly different perspective. When you graduate from college, especially in these tumultuous times, it’s hard to say where you’ll be a few years down the road. You may end up moving to a different state, or even another country, where you won’t need your car.
Leasing may be a better option than buying if you only plan to stay in your current city for a couple of years. You’ll also be able to afford a nicer, newer car at a lower price. On the other hand, you’ll be restricted to an annual mileage limit, and leases are notoriously diffucult ot get out of.
If you don’t fall into this group, we recommend buying rather than leasing. Buying allows you to build equity long term and gives you more control over what happens to the vehicle.
Visit our Leasing Information Center for more
Buying a Used Car
If you decide to go the used-car route, a prepurchase inspection should be an absolute top priority. Look for a reputable dealership or independent garage that specializes in the brand you’re interested in, and ask a mechanic to give the car a thorough look. These inspections can help save you from losing money on unnoticed issues. If some notable problems are uncovered, you’ll have more negotiating leverage with the seller. Don’t forget that walking away is always an option if there are too many issues with the car.
If you don’t have access to a trusted mechanic, search for “car inspection companies” in your area. If you are buying out of state, there are nationwide inspection companies that will inspect a vehicle anywhere. Additionally, we also urge you to obtain a car history report before buying.
Editor’s Note: We have updated this article since its initial publication.
