Buying Your First Car?Blog Apr 7th, 2021
Buying your first car can be an exciting yet scary experience. If you’ve never been through the process before, it can feel as if you’re on a ship navigating unchartered waters. To help you make the right choices, follow this helpful guide to buying your first car.
Set a Budget
Before you head to the dealership, take the time to review your current income and expenses to determine exactly how much money you can contribute towards the car payments. Remember to budget for the estimated maintenance, insurance, gas and parking costs. As a rule of thumb, the monthly payments should not exceed 10% of your monthly net income.
Determine Whether You Want to Finance or Lease
Do you want to own or borrow the vehicle? With financing, you can finance up to 100% of the value of the vehicle and then pay off the loan in monthly installments. Once the loan is paid off, you own the vehicle. But if you prefer to use the car for a number of years and then turn it in to get a newer one, leasing would be the best option.
Apply for Financing
You can save yourself a lot of hassle and frustration by applying for financing before you settle on a make and model. Within a few hours, you’ll know exactly how much you can spend on your first car. That way, when you do go shopping, you can pick a vehicle that is within your budget.
Test Drive Vehicles
Once you know exactly how much you can afford, start shortlisting all the vehicles you like in your price range. Then call the dealership and book an appointment to start test driving the vehicles. A test drive is the best way to find out how each vehicle feels and performs.
Close the Deal
Once you’ve found a car that you love, it’s time to review the contract. It’s important to go over the details carefully, making sure you understand everything before you sign. If you have any questions, now’s the time to ask the representative before it’s a done deal. Once you are comfortable with the terms and rates, it’s time to sign and call the vehicle yours.
Purchase Car Insurance
Don’t forget about the insurance! To own and operate a car in Canada, you must have auto insurance to protect you from various risks. Getting insurance is easy and your dealership can point you in the right direction.
If you’re considering buying your first car, visit us online or come see us at Barrhaven Honda today. We have an amazing lineup of new and used cars for all budgets and lifestyles. Come test drive a Honda today!