{"id":73949,"date":"2022-08-18T10:38:26","date_gmt":"2022-08-18T10:38:26","guid":{"rendered":"https:\/\/www.gtopcars.com\/?p=73949"},"modified":"2024-03-31T17:44:42","modified_gmt":"2024-03-31T17:44:42","slug":"a-guide-on-how-to-buy-your-first-car","status":"publish","type":"post","link":"https:\/\/www.gtopcars.com\/blog\/a-guide-on-how-to-buy-your-first-car\/","title":{"rendered":"A Guide on How to Buy Your First Car"},"content":{"rendered":"

Who would have thought that buying your first car would be so daunting? Most people devote plenty of time and money to purchasing their first vehicle. It’s probably because they want to make sure they are buying the right car that will stay by their side for a long time.<\/p>\n

\"Steps<\/a>

Steps of Car Financing<\/p><\/div>\n

We believe that this process should be an exciting one because after all, this is a big financial decision and you shouldn\u2019t come to regret it later. So, let\u2019s start with a little research.<\/p>\n

Step #1 : Set Your Budget<\/h3>\n

When making such an expensive purchase, it\u2019s important to set a budget. Many people start searching for a car without knowing how much they can afford. Whether you will be leasing your car or getting a loan for it, which we will talk about later, you need to find out how much you can give in monthly payments. This will allow you to sustain your daily expenses from personal to professional without jeopardizing your financial health.<\/p>\n

Step #2 : Browse Vehicles<\/h4>\n

Now that you know how much you can afford to pay, it’s time to look at cars. Do not go above your set limit because this will destroy all the planning you did in step #1. If your dream is to own a luxurious car, consider things like gas and maintenance that run the overall cost of owning a car pretty high. This doesn’t mean that your search should include only small cars. Consider other factors such as your lifestyle and the car’s usage to determine whether a particular car will be worth buying or not. Buying a car is a big financial decision, and as a student, you may not have a lot of money to spend. However, there are ways to save money as a student. For example, you can save on online services by applying for\u00a0do my<\/a>\u00a0essay cheap<\/a> help. Or limit yourself to spending on entertainment. You should check online resources or guide like the Prestige Cars blog<\/a> to compare and know what car is on your budget before deciding.<\/p>\n

Step #3 : Take a Look at Your Credit Score and Credit History<\/strong><\/p>\n

Your credit score and credit history are two important pieces of information that lenders rely on when giving bad credit car loans<\/a>. Depending on what agency\u2019s score range the lender is looking at, the numbers will give you the following rating.<\/p>\n\n\n\n\n\n\n\n\n
Credit Rating<\/b><\/td>\nFICO Score Range<\/b><\/td>\n<\/tr>\n
Very Poor<\/b><\/td>\n300 –\u00a0 580<\/span><\/td>\n<\/tr>\n
Fair<\/b><\/td>\n580 – 669<\/span><\/td>\n<\/tr>\n
Good<\/b><\/td>\n670 – 739<\/span><\/td>\n<\/tr>\n
Very Good<\/b><\/td>\n740 – 799<\/span><\/td>\n<\/tr>\n
Exceptional<\/b><\/td>\n800+<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n\n\n\n\n\n
Credit Rating<\/b><\/td>\nVantage Score Range<\/b><\/td>\n<\/tr>\n
Very Poor<\/b><\/td>\n300 – 499<\/span><\/td>\n<\/tr>\n
Poor<\/b><\/td>\n500 – 600<\/span><\/td>\n<\/tr>\n
Fair<\/b><\/td>\n601 – 660<\/span><\/td>\n<\/tr>\n
Good<\/b><\/td>\n661 – 780<\/span><\/td>\n<\/tr>\n
Excellent<\/b><\/td>\n781 – 850<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

As you can see, there\u2019s not much difference between the two models. However, a few numbers up and down can change your credit rating and lower the interest rate.\u00a0While your credit score is a big deciding factor for the lender, it is not the only one. Your credit history also plays a big role. For example, your credit history shows that you have made a few late payments. This tells the lender that you are not good at handling car finance. The higher your debts, the more skeptical the lender will be of approving your loan application. Though we have mentioned that you can get a bad credit loan, this won’t get you favorable terms.<\/p>\n

Step #4 : Lease vs. Purchase<\/strong><\/p>\n

When it comes to owning a car, you have two options: Leasing and purchasing.<\/p>\n

Here\u2019s how the two differ:<\/strong><\/p>\n

Leasing is a cheap option that allows you to get a car for a limited amount of time. Mostly, the price range falls under your budget, which is its biggest benefit. However, with leasing comes the limitation of the maximum mileage allowance. If you go above the set mileage limit, you will have to pay more than you owe. Purchasing is an expensive option, but with a car loan, you can choose a more durable car and own it in just a couple of months. One of the biggest benefits of purchasing a car using a loan is that it gives you the freedom to do whatever you want with it. You can even sell it later on and on your terms.<\/p>\n

Step #5 : Understand Depreciating Value<\/strong><\/p>\n

Cars lose their value day after day. However, not all of them depreciate at such a fast rate. The rule of thumb is that the higher the car\u2019s demand, the less it will devalue over time. According to a survey, new vehicles depreciate 19% a few months after they are bought, while some depreciate 40%. In the second year, the value experiences a 15% drop. This doesn\u2019t make all cars a bad investment.
\nSince new cars don’t break down that easily and are fuel-efficient, you will still benefit from purchasing one rather than leasing it.<\/p>\n

Step #6 : Save for the Down Payment<\/strong><\/p>\n

Unlike personal loans, bad credit car loans<\/strong> require you to make a down payment. This will allow you to lower the interest rate, as well as the monthly payments. Generally, it is recommended that you offer at least 10% of the loan amount in a down payment, but 20% will go a long way in convincing the lender to give you favorable terms. So, you better start saving now because if you are planning to buy a car that costs more than $5,000, you will need to show the lender that you can afford the loan.<\/p>\n

Step #7 : Apply for a Car Loan<\/strong><\/p>\n

Bad credit car loans<\/strong> usually ask for collateral that can be either the car you are purchasing or a savings account so that if you fail to make the payment, the lender will transfer the fund from your account into theirs. Once your application has been approved, you will get the funds into your account in just a day.<\/p>\n

Step #8 : Go for a Test Drive<\/strong><\/p>\n

Before purchasing the car, go for a test drive. Even though the car looked great in pictures, it might not feel that way while driving. Comfort is key to buying a car, so make sure that you feel that way the moment you sit in the driver’s seat.<\/p>\n","protected":false},"excerpt":{"rendered":"

The most important step in financing your first car is choosing between leasing it and getting a loan to buy it. Click here to find out about the other steps. Many people start searching for a car without knowing how much they can afford. Comfort is key to buying a car, so make sure that you feel that way the moment you sit in the driver’s seat.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-73949","post","type-post","status-publish","format-standard","hentry","category-blog"],"yoast_head":"\nA Guide on How to Buy Your First Car<\/title>\n<meta name=\"description\" content=\"The most important step in financing your first car is choosing between leasing it and getting a loan to buy it. Click here to find out about the other steps.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.gtopcars.com\/blog\/a-guide-on-how-to-buy-your-first-car\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"A Guide on How to Buy Your First Car\" \/>\n<meta property=\"og:description\" content=\"The most important step in financing your first car is choosing between leasing it and getting a loan to buy it. Click here to find out about the other steps.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.gtopcars.com\/blog\/a-guide-on-how-to-buy-your-first-car\/\" \/>\n<meta property=\"og:site_name\" content=\"GTOPCARS.COM\" \/>\n<meta property=\"article:published_time\" content=\"2022-08-18T10:38:26+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-03-31T17:44:42+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.gtopcars.com\/blog\/wp-content\/uploads\/2000\/01\/Steps-of-Car-Financing.jpg\" \/>\n<meta name=\"author\" content=\"naeemsheeraz\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"naeemsheeraz\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.gtopcars.com\\\/blog\\\/a-guide-on-how-to-buy-your-first-car\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.gtopcars.com\\\/blog\\\/a-guide-on-how-to-buy-your-first-car\\\/\"},\"author\":{\"name\":\"naeemsheeraz\",\"@id\":\"https:\\\/\\\/www.gtopcars.com\\\/blog\\\/#\\\/schema\\\/person\\\/f614e1d4ee260a839d581432e9d15165\"},\"headline\":\"A Guide on How to Buy Your First Car\",\"datePublished\":\"2022-08-18T10:38:26+00:00\",\"dateModified\":\"2024-03-31T17:44:42+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.gtopcars.com\\\/blog\\\/a-guide-on-how-to-buy-your-first-car\\\/\"},\"wordCount\":1035,\"image\":{\"@id\":\"https:\\\/\\\/www.gtopcars.com\\\/blog\\\/a-guide-on-how-to-buy-your-first-car\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.gtopcars.com\\\/blog\\\/wp-content\\\/uploads\\\/2000\\\/01\\\/Steps-of-Car-Financing.jpg\",\"articleSection\":[\"Blog\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.gtopcars.com\\\/blog\\\/a-guide-on-how-to-buy-your-first-car\\\/\",\"url\":\"https:\\\/\\\/www.gtopcars.com\\\/blog\\\/a-guide-on-how-to-buy-your-first-car\\\/\",\"name\":\"A Guide on How to Buy Your First Car\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.gtopcars.com\\\/blog\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.gtopcars.com\\\/blog\\\/a-guide-on-how-to-buy-your-first-car\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.gtopcars.com\\\/blog\\\/a-guide-on-how-to-buy-your-first-car\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.gtopcars.com\\\/blog\\\/wp-content\\\/uploads\\\/2000\\\/01\\\/Steps-of-Car-Financing.jpg\",\"datePublished\":\"2022-08-18T10:38:26+00:00\",\"dateModified\":\"2024-03-31T17:44:42+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/www.gtopcars.com\\\/blog\\\/#\\\/schema\\\/person\\\/f614e1d4ee260a839d581432e9d15165\"},\"description\":\"The most important step in financing your first car is choosing between leasing it and getting a loan to buy it. Click here to find out about the other steps.\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.gtopcars.com\\\/blog\\\/a-guide-on-how-to-buy-your-first-car\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.gtopcars.com\\\/blog\\\/a-guide-on-how-to-buy-your-first-car\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.gtopcars.com\\\/blog\\\/a-guide-on-how-to-buy-your-first-car\\\/#primaryimage\",\"url\":\"https:\\\/\\\/www.gtopcars.com\\\/blog\\\/wp-content\\\/uploads\\\/2000\\\/01\\\/Steps-of-Car-Financing.jpg\",\"contentUrl\":\"https:\\\/\\\/www.gtopcars.com\\\/blog\\\/wp-content\\\/uploads\\\/2000\\\/01\\\/Steps-of-Car-Financing.jpg\",\"width\":600,\"height\":284,\"caption\":\"Steps of Car Financing\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.gtopcars.com\\\/blog\\\/a-guide-on-how-to-buy-your-first-car\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.gtopcars.com\\\/blog\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"A Guide on How to Buy Your First Car\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.gtopcars.com\\\/blog\\\/#website\",\"url\":\"https:\\\/\\\/www.gtopcars.com\\\/blog\\\/\",\"name\":\"GTOPCARS.COM\",\"description\":\"Blog\",\"alternateName\":\"GTOPCARS.COM\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.gtopcars.com\\\/blog\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/www.gtopcars.com\\\/blog\\\/#\\\/schema\\\/person\\\/f614e1d4ee260a839d581432e9d15165\",\"name\":\"naeemsheeraz\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/6a0c22c3177800e59f0d5781a62d48dc54281bba2f67347c95a5ab339107a7f0?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/6a0c22c3177800e59f0d5781a62d48dc54281bba2f67347c95a5ab339107a7f0?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/6a0c22c3177800e59f0d5781a62d48dc54281bba2f67347c95a5ab339107a7f0?s=96&d=mm&r=g\",\"caption\":\"naeemsheeraz\"},\"sameAs\":[\"https:\\\/\\\/www.gtopcars.com\\\/blog\"],\"url\":\"https:\\\/\\\/www.gtopcars.com\\\/blog\\\/author\\\/naeemsheeraz\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"A Guide on How to Buy Your First Car","description":"The most important step in financing your first car is choosing between leasing it and getting a loan to buy it. Click here to find out about the other steps.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.gtopcars.com\/blog\/a-guide-on-how-to-buy-your-first-car\/","og_locale":"en_US","og_type":"article","og_title":"A Guide on How to Buy Your First Car","og_description":"The most important step in financing your first car is choosing between leasing it and getting a loan to buy it. Click here to find out about the other steps.","og_url":"https:\/\/www.gtopcars.com\/blog\/a-guide-on-how-to-buy-your-first-car\/","og_site_name":"GTOPCARS.COM","article_published_time":"2022-08-18T10:38:26+00:00","article_modified_time":"2024-03-31T17:44:42+00:00","og_image":[{"url":"https:\/\/www.gtopcars.com\/blog\/wp-content\/uploads\/2000\/01\/Steps-of-Car-Financing.jpg","type":"","width":"","height":""}],"author":"naeemsheeraz","twitter_card":"summary_large_image","twitter_misc":{"Written by":"naeemsheeraz","Est. reading time":"5 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.gtopcars.com\/blog\/a-guide-on-how-to-buy-your-first-car\/#article","isPartOf":{"@id":"https:\/\/www.gtopcars.com\/blog\/a-guide-on-how-to-buy-your-first-car\/"},"author":{"name":"naeemsheeraz","@id":"https:\/\/www.gtopcars.com\/blog\/#\/schema\/person\/f614e1d4ee260a839d581432e9d15165"},"headline":"A Guide on How to Buy Your First Car","datePublished":"2022-08-18T10:38:26+00:00","dateModified":"2024-03-31T17:44:42+00:00","mainEntityOfPage":{"@id":"https:\/\/www.gtopcars.com\/blog\/a-guide-on-how-to-buy-your-first-car\/"},"wordCount":1035,"image":{"@id":"https:\/\/www.gtopcars.com\/blog\/a-guide-on-how-to-buy-your-first-car\/#primaryimage"},"thumbnailUrl":"https:\/\/www.gtopcars.com\/blog\/wp-content\/uploads\/2000\/01\/Steps-of-Car-Financing.jpg","articleSection":["Blog"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.gtopcars.com\/blog\/a-guide-on-how-to-buy-your-first-car\/","url":"https:\/\/www.gtopcars.com\/blog\/a-guide-on-how-to-buy-your-first-car\/","name":"A Guide on How to Buy Your First Car","isPartOf":{"@id":"https:\/\/www.gtopcars.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.gtopcars.com\/blog\/a-guide-on-how-to-buy-your-first-car\/#primaryimage"},"image":{"@id":"https:\/\/www.gtopcars.com\/blog\/a-guide-on-how-to-buy-your-first-car\/#primaryimage"},"thumbnailUrl":"https:\/\/www.gtopcars.com\/blog\/wp-content\/uploads\/2000\/01\/Steps-of-Car-Financing.jpg","datePublished":"2022-08-18T10:38:26+00:00","dateModified":"2024-03-31T17:44:42+00:00","author":{"@id":"https:\/\/www.gtopcars.com\/blog\/#\/schema\/person\/f614e1d4ee260a839d581432e9d15165"},"description":"The most important step in financing your first car is choosing between leasing it and getting a loan to buy it. Click here to find out about the other steps.","breadcrumb":{"@id":"https:\/\/www.gtopcars.com\/blog\/a-guide-on-how-to-buy-your-first-car\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.gtopcars.com\/blog\/a-guide-on-how-to-buy-your-first-car\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.gtopcars.com\/blog\/a-guide-on-how-to-buy-your-first-car\/#primaryimage","url":"https:\/\/www.gtopcars.com\/blog\/wp-content\/uploads\/2000\/01\/Steps-of-Car-Financing.jpg","contentUrl":"https:\/\/www.gtopcars.com\/blog\/wp-content\/uploads\/2000\/01\/Steps-of-Car-Financing.jpg","width":600,"height":284,"caption":"Steps of Car Financing"},{"@type":"BreadcrumbList","@id":"https:\/\/www.gtopcars.com\/blog\/a-guide-on-how-to-buy-your-first-car\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.gtopcars.com\/blog\/"},{"@type":"ListItem","position":2,"name":"A Guide on How to Buy Your First Car"}]},{"@type":"WebSite","@id":"https:\/\/www.gtopcars.com\/blog\/#website","url":"https:\/\/www.gtopcars.com\/blog\/","name":"GTOPCARS.COM","description":"Blog","alternateName":"GTOPCARS.COM","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.gtopcars.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.gtopcars.com\/blog\/#\/schema\/person\/f614e1d4ee260a839d581432e9d15165","name":"naeemsheeraz","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/6a0c22c3177800e59f0d5781a62d48dc54281bba2f67347c95a5ab339107a7f0?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/6a0c22c3177800e59f0d5781a62d48dc54281bba2f67347c95a5ab339107a7f0?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/6a0c22c3177800e59f0d5781a62d48dc54281bba2f67347c95a5ab339107a7f0?s=96&d=mm&r=g","caption":"naeemsheeraz"},"sameAs":["https:\/\/www.gtopcars.com\/blog"],"url":"https:\/\/www.gtopcars.com\/blog\/author\/naeemsheeraz\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.gtopcars.com\/blog\/wp-json\/wp\/v2\/posts\/73949","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.gtopcars.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.gtopcars.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.gtopcars.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.gtopcars.com\/blog\/wp-json\/wp\/v2\/comments?post=73949"}],"version-history":[{"count":2,"href":"https:\/\/www.gtopcars.com\/blog\/wp-json\/wp\/v2\/posts\/73949\/revisions"}],"predecessor-version":[{"id":99801,"href":"https:\/\/www.gtopcars.com\/blog\/wp-json\/wp\/v2\/posts\/73949\/revisions\/99801"}],"wp:attachment":[{"href":"https:\/\/www.gtopcars.com\/blog\/wp-json\/wp\/v2\/media?parent=73949"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.gtopcars.com\/blog\/wp-json\/wp\/v2\/categories?post=73949"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.gtopcars.com\/blog\/wp-json\/wp\/v2\/tags?post=73949"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}