Buying your first car? Congratulations! Before you plan your first road trip, though, there are several important factors to consider as you ready yourself to buy this big- ticket item. It’s more than simply finding the right car for your needs. You also need to plan for your purchase that can put you in the driver’s seat to make a more informed decision.
Furthermore, you need to examine your finances since the average new car payment is $740 a month for new cars and $527 for used cars1. And, if you need to finance your purchase with a loan, then understanding what credit score is needed to buy a car is useful for first-time car buyers. Making sure you have healthy credit can help you pay less by getting better terms on a car loan for your target car.
Before you hit the gas, read these seven tips for buying a new car that can help you to prepare your finances and credit to manage the purchase process.
1. Find a car that fits your lifestyle
Matching your car choice with your lifestyle can help create a blend of functionality and your personal preferences. Start by prioritizing factors that resonate with your day-to-day routines.
To find the right car, consider aspects such as:
- Specific needs: Are you a city commuter? A weekend warrior seeking an off-road ready SUV? A family driver who needs spacious cargo room? Identify the must-have’s up front.
- Make and Model: Research online car comparison sites to understand various vehicle strengths and weaknesses.
- Features: Whether it’s an advanced driver-assistance system, a specific interior color or a top-notch sound system, identify which features align with your unique preferences. Car and Driver and Edmunds are examples of resources for detailed information on the latest car features and technological advancements.
- Vehicle options: Explore pros and cons of new vs. used cars and consider traditional gas-powered, hybrid and electric car possibilities.
- Fuel efficiency: According to the U.S. Department of Energy, the annual fuel cost is influenced by a car’s miles per gallon (MPG) and the average fuel price in your area2. Choosing a vehicle with a higher MPG can lead to significant long-term savings.
- Safety ratings: Organizations like the National Highway Traffic Safety Administration (NHTSA) and the Insurance Institute for Highway Safety (IIHS) evaluate vehicles to measure their safety. They can provide insights into crashworthiness and accident prevention features.
- Reliability: Platforms like Consumer Reports and Kelly Blue Book (KBB) offer insights into the dependability of various makes and models. Knowing your target car’s average longevity and maintenance costs can help ensure the car you purchase is more likely to be functional when you need it.
You should consider car shopping online first before visiting a dealership. Doing so can help you get an idea of what cars cost in your area, and you can request quotes to get specific pricing.
TransUnion conducted a survey in October 2023 of 400 consumers who purchased a vehicle in the last 12 months. The survey showed that nearly 80% of consumers used websites during the vehicle search process, with the top ones being local dealerships and vehicle listing sites.
