Plan precisely to buy first car

If you have no established credit history, there are a number of barriers in the way to your entry into car ownership.

If you have no established credit history, there are a number of barriers in the way to your entry into car ownership.

When you are young and invincible, you have all these starry-eyed dreams about the car you are going to get.

Then reality sets in, as concepts you never had to deal with before suddenly leap out of nowhere to crush your dream and knock you back down to earth.

How are you going to pay for your new car? Have you got insurance quotes? Who will finance you? Now you have to pay for petrol, and there are oil changes, new batteries to buy, and other unexpected expenses.

We advise all car buyers to purchase a car you can afford to pay off in 48 months. You must also put down 20percent on the car to keep you from getting upside down, where you owe more on the car than it is worth.

If you cannot put down 20percent on the car, then do not buy that car. You must buy a car on which you can afford to put down 20percent. There is no room for arrogance or indignant responses here, it's a mathematical fact of life.

Every single person who breaks this rule runs into trouble when they trade in their car later. You never ever want to be in the position of owing more than your car is worth.

If you determine that you can afford a new car, then make sure you enter new car dealers with The Folder of competitive new car price quotes, or you'll overpay by thousands.

If you cannot squeeze that car loan into 48 months, do not buy that car, you are heading down a path of destruction.

You don't want to spend the next six years paying off a car. Go and buy a cheaper car instead. Remember, your car loan is but one of many cost items contributing to your overall cost of vehicle ownership.

Most people overlook all the other cost items and get into trouble really quickly, not realising insurance goes up on a new car.

You should create a budget that accounts for all your yearly costs to own that car, such as loan repayments, tyres, insurance, maintenance, and so on.

Then, from your budget, you should determine if you can handle that much of a yearly drain on your finances.

If you cannot afford a new car, we suggest buying a quality dependable used car such as a Honda Accord or Toyota Camry, which typically run years without costly repair issues.

That is what is most important with your first car, safety and dependability, especially once you head off to college and cannot afford a single thing to go wrong. - carbuyingtips