Your first car is an exciting purchase, and it may be the largest investment you’ve ever made. Whether you’re shopping for new or used cars, you’ll want to get the best possible vehicle for your money. Follow some proven budgeting tips below to approach this major purchase wisely.

A Beginner’s Shopping Guide for a First Car

1. Determine Your Budget

First, consider how you’re going to pay for your car. Most first-time buyers have saved a certain amount for their down payment, while others take out loans. Some loans allow zero percent down and the rest of the purchase price to be covered under the loan. Look at your monthly budget to determine how much room you have for your monthly loan payment. A general financial rule states that 15 percent of your monthly take-home pay can go towards car expenses. This includes your loan, insurance, gas, and maintenance. By calculating how much you can afford a month and how long you’ll be paying off the loan, you’ll know what make and model you can afford.

2. Shop for Used Cars

A brand-new car loses much of its value once you drive it off the lot. It then continues to depreciate rapidly for the first few years. If you’re on a budget, you can save thousands of dollars by buying a car that is a few years old. Go to a reputable car dealership for certified pre-owned cars. Most pre-owned cars come with a paper trail of their history, so you can ensure you are receiving a safe vehicle. 

3. Plan for Other Fees

There are many costs to buying a car that people may not think about. There are more fees than just your down payment. Plan for registration, title fees, sales, tax, and your first car insurance payment. You will also need to have insurance before driving home in your car. You should have money set aside for any additional repairs or detailing the car may need.

FacilDeal Auto Center in Haines City, FL, makes buying your first car a rewarding experience. Shoppers from around Central Florida come to browse their expansive selection of used cars at affordable prices. Their experienced sales representatives will walk you through the entire purchase process and get you the best interest rate possible on a loan with same-day approval. Preview their inventory online, visit the lot for a test drive, and call (863) 588-2159 with any questions.