Car Buying Tips: First Time - Rules To Follow

Car Buying Tips: First Time - Rules To Follow

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An exciting time for young adults and a time of much conversation with their parents is the time in their life that they approach the driving age and thoughts turn to owning their very own car. Needless to say this brings about a whole bunch of conversation between the young first time buyer and their parents.

If you're a parent about to engage in this type of subject matter with your son or daughter (As I have now for a couple kids), there are some very real reality checks you need to bring very much to light with your child.

As is the case with most all first time car buyers, the focus of their attention (beyond the car of their dreams) is the price of the car itself. At this point, not a bad thing, at least their thinking in some sort of financial terms. So, follow up with this thinking and discuss with them just what their plan is when it comes to paying for the car. I should pause right here and mention that if you are the type of parent with the means and desire to take care of this financial responsibility for your child then... well you probably haven't read this far anyway.

One detail that you want to make sure that you bring home to the thought process of car buying for your son or daughter is that as long as they own the car; they are going to be paying for the car... even if they pay cash. Cars are an expense... they are a monthly hit to everyone's budget... so they'll never really stop paying for the car... and boy don't we know this!

Get beyond the price of the car in your discussion of the financing. Be sure to make sure they and their budget fully understand such items as insurance, gas, maintenance... and those times when things break that aren't planned for.

Let's get back to the financing angle for the point of our discussion. You'll want to insist that your first time young adult car buyer be in a comfortable position to put at least 20% down of the purchase price. Also, don't allow them to consider financing beyond the 48 month mark. In fact, insist on this.

The vital aspect of the no more than 48 months and at least 20% down will help ensure that your son or daughter isn't financially upside down in their car (they own more than it's worth) for the life of their loan. No complaining or crying... make sure they do this.

A vehicle is not an investment... it is a depreciating asset. So, your young person needs to be sure that they fully understand the magnitude of this monthly expense. And that continually paying for a car that isn't even worth market wise what you owe, is a very bad strategy. I've seen time and time again people that disregard these simple rules find themselves in an uncomfortable financial position when it comes time to trade. So stand your ground on this with your kids.

The assumption that this article is based upon is that your first time buyer is looking at purchasing a used car since this is by far the majority of the cases. But, if you are looking at the possibility of a new car for the first time car buyer then I must tell you that there are a whole other set of rules that apply that will keep you from spending way to much on a new car.

About the Author:
You are about to learn everything that car dealers do not want you to know! As a former salesman, finance manager, new and used car manager, and general sales manager, I have leveled the car buying playing field for you. Visit http://www.acarbuyersguide.com and check out my complete car buying guide. It could save you $1,000's on your next car purchase.



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