Buying Your First Vehicle: 6 Things to Keep in Mind

Is it time to purchase your first car, truck, RV, boat, etc.? First-timers be advised—there are a few things that can keep you from over-spending or ending up with a vehicle you don’t truly love.

Here are six tips to get you started.

Identify your needs

What do you need your new vehicle for? Are you a daily-commuter type with little to know outside-of-town vehicular travel? Are you a big road-tripper who takes off on the weekends? These sorts of attributes will dictate which style of vehicle you should be looking for—one with solid interstate MPG, one with space for sporting equipment, one with conservative space for basic everyday use. List your true needs before you start looking at the “hot car of the moment.”

Know your finances

Your first time buying a car, you might not be aware of the funding needs that go with it. You’ll need a source of funds for a down payment, as well as available monthly budget to go toward loan payments and insurance payments. You also might consider setting aside some money for potential repair or maintenance costs. (And if it’s your first car, don’t forget you’ll need spending money for gas and regular oil changes!) Make sure you’ve accounted for what’s available in your budget before you start eyeing something out of your price range.

Talk to fellow owners

One of your best resources for car-buying is anecdotal—discuss the process with your friends and family who have bought vehicles before. Particularly when they’ve purchased in your city, they may know of sellers that are particularly good at securing you a reasonable price. They also may have tips and tricks for things to look out for when seeing a car on the lot—from under-the-hood checks to tire and aesthetic properties. Start the conversation!

Play “used vs. new”

It’s so tempting to immediately jump for the shiny, new model of vehicle that’s never even been touched before. But there’s something to weighing your options. Budget can play a huge role in deciding whether to buy new or used. Long-term use is also a factor—do you anticipate keeping this car for a lengthy amount of time, or are you in the market for something immediate and shorter-term? If it’s the latter, a resilient used car that has a few years (and a few miles) on it might be the most cost-effective option. Do your research on cars that hold up best over time, and examine your finances to determine what’s right for you.

Set yourself a limit

Buying a vehicle is about more than knowing your own finances. It’s about your credit score and—even more importantly—your borrowing limit. One great way to test your ability to buy is to talk to a credit union lender about how much you might be able to borrow for your purchase. This can give you a better idea of which vehicles are reasonably priced enough to fit your estimated borrowing bracket. It’s a good way to guide your buying process—take a look at what Levo Credit Union has to offer, or contact our lenders today.

Recognize flaws

Picking up on potential dings (both visibly and invisibly) in your future vehicle purchase can sometimes seem difficult to manage with the naked eye—particularly if you’re feeling the pressure to buy on a car lot. Do your homework ahead of time—look at reviews for vehicles you’re considering and make sure to address these on your test drive and in your conversations with the dealer. Consider bringing along a knowledgeable friend or relative—and always make sure used vehicles have been inspected by a mechanic before signing on the line.

Picking out your first car is exciting—just remember to set yourself up for success by keeping the above considerations in mind when you start the venture.