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Buying your first car is an exciting time. Owning a car means truly having freedom to travel. You can go where you want when you want to. However, owning a car is also a significant responsibility. It’s a big investment. You don’t want to make any serious mistakes. With that in mind, here are a few things first time car buyers should keep in mind.
You Shouldn’t Pay the Sticker Price
One huge mistake many people unfortunately make is actually paying the price listed on the sticker placed on a car in the dealer’s lot. That sticker price actually includes a significant markup. Nearly anyone who is educated on the process negotiates with the dealer to bring the price down before choosing to buy. To find what price you should actually pay, look up the model you are considering on a site like Edmunds or TrueCar. Those sites can tell you what the average person actually pays for the vehicle you want. That way, you’ll have more intel when negotiating on price.
Your Credit Score Matters a Lot
Unless you have a pile of cash sitting around, chances are you will need a loan to buy a car. The terms of that loan may be very negative if your credit check produces poor results. In fact, you may be rejected for a loan entirely by the dealer or even a bank. You need to make sure your credit score is healthy. According to Markosian Auto, the best you can hope for is a credit score of 680 or above. That will give you the most options. Overall, attempt to improve your credit score well before you try to take out a loan on a new car.
Different Factors Can Affect Your Car Insurance Premiums
Beyond the financing plan you choose to purchase the car, another significant expense will be car insurance. In all 50 states, you must have insurance to own a car. However, what you may not know are all the factors that can determine what you are forced to pay for insurance. This can include the type of vehicle. A sports car will certainly cost more. It can also include things like your age, marital status, gender, driving record and the kind of coverage purchased. Your credit score and credit history will also be a huge factor.
Purchasing a new car can certainly be exciting. However, make sure to first educate yourself on the process and all factors involved. If you are more knowledgeable, you will be far less likely to make mistakes or encounter problems.