Are you looking for an affordable first-time car buyer program? Most people can agree that buying their first vehicle is a challenge. It is especially true if you are just starting out. Aside from not having a credit rating yet, you are probably worried about the upfront payment and other expenses. We offer car loans for bad credit. All credit and financial situations are accepted.
People who do not have a credit rating normally worry the most because they know the importance of a good credit score. With a good credit rating, you can shop for great deals and negotiate better rates allowing you to get a car.
Having a good credit rating also gives you the accumulation effect. Because you might not be able to afford the upfront and monthly payments, you’ll be sure to pay on time. This means you’ll instantly get a good rep in the lending world. It can help you quickly build your credibility and credit rating. As a result, you can get better deals and your credit score will continue to improve.
But, how do you build up your credit rating in the first place? Everyone has to start somewhere. For most, a vehicle is not only a necessity but, a great way to get a credit rating. However, as a first-time car buyer, you may be asking yourself: where do I start?
Read More: New or Used: Which Car is Right for Me?
This is where this guide comes in. At Car Loan Cash Now, our goal is to make it easier for you to choose a first-time car buyer program and acquire your first vehicles. Let’s have a look at some useful tips that could help you with your search.
First Time Car Buyer Program – How Auto Loans Work
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For most first-time car buyers, a loan is the only way to get finance on their first car. It spreads the risks and payments throughout a longer period of time. Often, getting a vehicle loan is better than saving up the money.
Many people need a car for work, business, or school. It is a necessity, not just a luxury. You need a vehicle that is reliable. You want it as soon as possible because you will be using it every day. If you save up the money, it will take a long time before you can purchase a new car. In this case, it is more practical to get a car loan that is applicable to a first-time car buyer.
However, looking for a first-time car buyer program can be challenging. You have to deal with paperwork, shop for good deals, compare the interest rates, take care of your finances, and the list goes on. It’s made more complicated and stressful by the expenses that keep on adding up over time.
Most people think they should do research and build a good credit rating before they can get a car loan with reasonable interest rates. Many lenders look at the person’s finance and credit history before confirming a loan. They want to reduce the risks as much as possible. This is one of the main reasons interest rates and monthly payments are high for a first-time car buyer, regardless of the vehicles chosen.
You Can Still Get Affordable Monthly Payments
But, don’t worry, there is still hope. There are loads of programs out there for first-time car buyers at reasonable prices. Also, many first-time car buyer programs offer lower interest rates and affordable monthly payments. You just need to know where to find them!
Before we discuss the best way to get your first-time car buyer program, let’s have a look at the best car options for you. This way you’ll avoid the common mistake most first-time car buyers make which is to choose a car that they can’t afford.
Read More: Can You Buy a New Car With a Credit Card?
How To Buy Your First Car
If you are a first-time car buyer and want to know how to save money for a car, check out some of the suggestions we’ve made below. These will also help you avoid the common mistakes many first-time car buyers make.
Firstly, work out your budget and stick to it! buying your first car is really exciting. The feeling of having your own car and being able to claim your independence is great. You can use it for work, family holidays, date nights… skies the limit.
With all the excitement it’s easy to forget about that boring thing we call a budget. Yes, a first-time car buyer can take out a loan but, you still have to think about the down payments, monthly payments, and interest rates that come with it. These are just some of the costs you’ll incur.
There is another set of figures that will creep up along the way such as, taxes, fuel, insurance, maintenance, and repairs. As a first-time car buyer, you will be burdened with more monetary responsibility but, it will be worth it!
Aside from knowing your budget, you should also prepare your financial information and credit history details. This makes it easier for lenders to assess your financial capabilities. If you have all the financial information available for them, they may give you lower interest rates. Make sure to fill in the loan application form in full.
Budgeting as a First Time car buyer
Previously, we discussed how auto loans work. We also discussed the things you should consider and the research you should carry out as a first-time car buyer. Here, we are going to shed a bit of light on budgeting. We will discuss some of the most common first-time car buyers concerns such as upfront and monthly payments.
The Down Payment
Let’s start with the down payments. Financial experts recommend paying at least 20% of the total amount of the car loan or financing agreement. One reason for this is that a bigger down payment can translate to lower interest rates and more affordable monthly payments.
Lenders prefer a bigger down payment. Keep in mind that it is your first loan. There are risks, especially for the lender. They still want to make a profit based on fair transactions.
If you make a down payment of at least 20%, the risk for the lender decreases. Not only have they collected a sizable amount of money but it also shows that you are committed to paying the loan in full. This is because you have already invested a large amount of money into buying your car. As far as they are concerned, there is no other option but to continue making your monthly payments.
As a result, the lender may be willing to give you more favorable interest rates. You have gained their trust and you will actually save more money in the long term- another reason to pay at least 20% of the sticker price.
Read More: Should I Buy or Lease a New Car?
Monthly Payments and Other Expenses
Aside from the down payment, you should also keep in mind the monthly payments and other expenses. A good way to make sure you can afford the monthly payments is to choose a first-time car buying program that is less than 20% of your income. For example, if you earn $5,000 a month, you should only choose a program that requires a $1,000 payment or less.
That amount you pay is arbitrary. You can still go for a higher amount if you feel you can live comfortably with the remainder of your salary. Take note: emergencies do occur. Remember, life is unpredictable so make sure you have enough to one side for a rainy day, and keep in mind your daily travel expenses.
Earlier, we mentioned fuel. Consider this when you are you are putting aside your monthly budget. You should also consider the insurance rates. First-time car buyers often overlook insurance when they are working out their budget. To reduce your insurance rates, check out the tips below:
- Add security devices so that your car is automatically tracked if someone steals it
- Only purchase the coverage you need
- If you can, keep your car in a garage when not in use
Regular Maintenance and Repair Fees
Aside from fuel and insurance, don’t forget about regular maintenance and repair fees. Whether it is a new or pre-owned car, repairs and maintenance are inevitable. It can be stressful if your car breaks down and you have no money saved up to fix it. Regular maintenance will help you keep your car in good condition and reduce your expenses in the long run.
Now you have some idea on how to budget for your first-time car buyer program. Next, we’ll have a look at ways to save money and avoid the common pitfalls first-time car buyers make.
Tips for First Time Car Buyers
Buying your first car can be stressful. But don’t worry, Car Loan Cash Now is here to help. Yes, it can get emotional especially as you really want to buy your first car quickly. This will push you to make choices quickly so beware, don’t make any quick decisions.
Take Your Time
Salespeople recognize when someone wants a car quickly. They can sense it when customers are in a rush. The next thing you know, you’ve already signed up for an in-house loan. Yes, you’ve got your car, but the interest rates and monthly payments are higher.
Avoid making that mistake. Do not fill out an application form on the spot. Take extra time to think the deal through and have a think about whether or not it really suits you. With that extra time, you’ll save yourself money and heartache in the long run.
You might be worried because you are a first time car buyer with no history or, you might have some outstanding debts, a poor financial history, or a bad credit rating. The best piece of advice we can give you is: don’t take the first offer that comes your way. Some unscrupulous companies are fast to take advantage of the fact you are not 100% sure you know what you’re doing.
Overcome temptation. Take time to find a first-time car buyer program that suits your needs and budget. Remember, there is a car out there that is perfect for you and you might be surprised at how easy it is to get a first-time car buyer program regardless of your credit rating.
Are you a college student? Read this post on Buying a Car for a College Student
The Car Loan Cash Now Application Form
At Car Loan Cash Now we’ve put all your needs in one simple application form. By filling in our form you can find the best first car buyer program for you that fits your budget. It only takes a few minutes to fill out and results are as quick as 60 seconds. The service is convenient, easy and can find you a first-time car buyer lender with low-interest rates. Get started now from the comfort of your sofa.
Car Loan Cash Now makes it easy for customers to find a first-time car buyer program. We work with customers with both bad and no credit history. We understand that customers need a car quickly so we have made our services as quick and stress-free as possible. Other services we offer include zero down car loans or financing agreements and first-time car buyers who have no credit history e.g. students.
First Time Car Buyer Program – Conclusion
If you are a first-time car buyer, we can help you find the solution to all your problems. At Car Loan Cash Now we will help you avoid the common mistakes first-time car buyers make. Avoiding common mistakes will help you save money and avoid unnecessary headaches in the future.
Remember to put 20% of the sticker cost of the car to one side for your down payment. This will help you lower your monthly payments and interest rates. When it comes to your monthly payment, you should consider your home budget. Consider other expenses such as fuel, insurance, repairs, and maintenance. It can become stressful in the future if you forget to factor in these additional expenses.
If you want convenience and speed, Car Loan Cash Now is the right place for you. We can help you find a suitable first-time car buyer program with low-interest rates within minutes. Our network of lenders is backed with years of experience dealing with customers who have both bad and no credit rating. If you are a first-time car buyer, let us help you today.