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First time car buying tips!

What an exciting time this is for you! Whether it is your first set of four wheels or your first car where you are involved in the process. either way here are a few tips to ensure your success in this momentous occasion. First things first, a short backstory on me and why you may find this helpful. Truth be told I personally have only purchased a handful of vehicles for myself but I have personally facilitated hundreds of vehicle purchasing transactions. With that being said it's safe to assume that I have a bit of experience in that realm. While I can guarantee the aforementioned experience when you purchase a vehicle with me. If that is not feasible then here are a few tips to help you along the way!

Know your budget

Reliable transportation is essential and important when it comes to our daily life. Vehicles enable us to reach our given destinations in an efficient and safe manner. As you probably know have your own vehicle is better than asking for rides to destinations, or walking places. With that being said there are many options to choose from. Your vehicle should ENHANCE your life and not be a financial BURDEN. Even though this should be common knowledge it is often overlooked when you walk on the lot and see all of those shiny vehicles. If you keep your budget in mind it helps narrow your options and focus on the prize of vehicle ownership! When financing a vehicle a good rule of thumb is your monthly car payment should not exceed more 10% of your monthly income and in rare cases (due to interest.etc) your payment should not exceed 15%. EXAMPLE:(if you make $4000 a mos a comfortable payment maybe around $450/mos)

Get some skin in the game!

Let's talk about down payments

For first time car buyers down payments do two things

  • Show the bank that you are serious about getting a car(skin in the game)

  • Help lower the amount financed( lower balance equal lower payment)

  • EXAMPLE: ($5,000 downpayment on a $20,000 vehicle = $15,000 financed) that $20,000 car is now $15,000

Down payments are essential to first time car buying success. Whether it is from trading in a car with positive equity or putting cash down. Cars are DEPRECIATING "assets" the lower the amount financed the better!


My least favorite part of purchasing a vehicle

When purchasing a vehicle always keep in mind that you will have to pay and additional amount in taxes(unless you are leasing) but we will touch on that at a later time. Tax rates vary from state to state but it is important to account for them in your budget.The good thing is that in most instances your sales tax is only calculated on the difference of the vehicle you are purchasing vs your trade in equity. EXAMPLE:( $2,000 of trade in equity vs a $20,000 vehicle = $18,000 difference, lets say your tax rate is 10% that would be $1,800 in taxes) If you were unable to come up with tat $1,800 you maybe able to get that Financed in the deal which would be reflected in your monthly payment.


  • For every $10,000 your monthly payment generally increases or decreases by $210

  • Aim for a 20% down payment

  • Most car loans don't carry prepayment penalties( don't be afraid to go extended terms)

This is a super exciting time, these are just a few of the tips that first time car buyers should consider. The number 1 tip is to have fun and enjoy the process If you would like more info please feel free to contact us via chat or via email at Have a wonderful day!

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