Should First Time Buyers Finance a New Car or a Used Car?

Getting your first car is an exciting milestone in your life, whether you are a young buyer or a first time buyer. At first, you may be tempted to get the most exciting vehicle you see on the lot. However, your finances may really not be able to support your wild auto driven dreams. Our team at Auto Credit Express wants to share with you some good financial tips to keep in mind when you decide on your first vehicle’s make, model and age.

Pro’s and Con’s of Buying New

 

Walking out onto the lot can be a bit dazzling with all the latest model cars, trucks and SUVs laid out expertly to entice you. That’s why you should do some research before you get to the lot and focus on what you need in a vehicle as well as what you can actually afford.

On the plus side, a new vehicle will get you the latest available technology and safety features built into the newest sleek design. The downside of course is the price tag. You should also consider that your vehicle will depreciate greatly in the first year alone. This can cause some precarious situations in which you may even become upside down in your loan.

Why Buying Used First is Logical

It may be seen as less glamorous to some, but in the end, buying a used car as your first vehicle is a wiser and more logical choice. This is for several reasons:

  • More than likely, your credit isn’t well established; Or you may need a dealer that works with subprime credit.
  • For a young first time buyer, you probably only need a reliable means of transportation at this time.
  • You’ll be purchasing your vehicle for its actual face value and not the markup price most new cars have.

The best thing to do is buy an inexpensive used car for now. As you pay your monthly payments on time, you will be building your credit standing into something that lenders will be more eager to work with, just be sure you buy it from a local in house financing car lot that will report your good payments and not just pocket your monkey.

Also, it gives you time to save up more money and have a larger down payment as well as allowing you to be able to handle expenses like gas, taxes, and insurance. Whether you choose new or used let Auto Credit Express help you find the best dealers in the US to work with. Complete our quick and hassle-free application and we’ll direct you to a local dealer in your area that has the expertise to get you into the vehicle you’ll love.

Posted on March 6, 2014 by in New Cars, Used Cars
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