How To Buy Your First Car

When you set out to learn how to buy your first car it's easy to become overwhelmed by the process. Don't settle for the first shiny piece of metal you see sitting on a lot. There are a few important details that you must take care of before you sign the dotted line.

1. Get a vehicle history report. The first step to take before you buy your first car is to sign up for an account with a vehicle history reporting service. This is only necessary for used cars. These reports show information about the background of the car, including the number of previous owners, mileage, and any serious damage to the car from accidents. If you can't bring a mechanic to come check out the car before you buy, a vehicle history report will at least give you some peace of mind about the transaction when you buy your first car.
2. Bring a friend to the dealership. Whenever you go to buy your first car, always bring a friend. This is a smart strategy for anyone buying a new car, because you need that other person to play "bad cop" in front of the salesman. You can show interest in the car, but your friend should give you plenty of reasons why it's probably not a good deal. Your friend may also see things that you don't because you're so in love with how the car looks. Salesmen are wise to this process, but they are motivated to make a deal. Bringing a buddy along could reduce your selling price by thousands when you buy your first car.
3. Choose financing. Consider the various options for financing when you buy your first car. The first and most preferable choice is to pay for it cash, because you won't have to worry about expensive interest payments over the years. If you must finance, at least have a couple thousand dollars in the bank for a down payment. You can choose from the dealership's financing company or get a loan from your own personal bank when you buy your first car. Inquire from both sources to see which has the best interest rate and terms. The interest rate on a car loan depends mostly on your credit rating.
4. Once you pick a car, settle on a price with the salesman, and sign the paperwork. You can drive your first new car right off the lot with temporary tags.
5. Make sure you get the car registered and properly insured in the coming days.

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Why Run a Vehicle History Report?