Tips for buying your first car 🚗
One of the pinnacle post-grad experiences is buying your first car, which can be an exciting and scary experience. I just went through the buying process for a 2023 Toyota RAV4 XLE Premium in Pearl White, and I gotta say, it was an EXPERIENCE. 😳 My family and I visited 3 dealerships, went through multiple rounds of negotiations, and waited almost 3 months for the car to arrive once we put down the deposit. It can be a lot, so here are some tips if you are in the market to buy your first (new?) car!
Research brands and models 📝
The first step is to figure out what brand/model you want and how much $ you want to spend on a car to fit your lifestyle and budget. With the internet, it is now easier than ever to read reviews, watch videos, and compare features of different car models. You can also check the reliability ratings of different brands to ensure that you are buying a car that will last you a long time. It also helps to check out different cars at various dealers and do test drives to see which one you like best! By doing your research beforehand, you can narrow down your options and make a more informed decision when it comes to purchasing a new car.
Why did I choose Toyota particularly? The main reason is that my parents had Toyotas that lasted them over 20 years so I know that they are extremely reliable plus they hold their value well. I could technically go and get a Tesla or another “sexier” brand, but I know the RAV4 will satisfy my needs.
Compare prices 💰
Once you have decided on a few car models that you are interested in, it's time to compare prices against different dealerships to get the best deal and avoid markups. When I was checking out different Toyota dealerships, I learned that some dealers charge thousands of extra dollars just to purchase the car from them. Luckily, I was able to find a dealer that didn’t have markups, so the price I paid was the MSRP plus included factory packages in the car.
Look into dealer and external deals 🤝
Apart from negotiating with the dealership, you can also look into external deals to help get a lower price on the car. Some car manufacturers also offer rebates and incentives for buying certain models. When I shopped with Toyota, recent college grads can get $500 off the purchase price.
There are also external deals and partnerships you should look into! For example, Costco has a car buying program with certain dealers to help you save additional money (only caveat: you or your family need to have a Costco membership). By taking advantage of these dealer and external deals, you can save money on the overall cost of the car.
Build good credit 🏦
Finally, if you are planning on financing your new car, it's essential to build good credit to get a low interest rate. A high credit score can help you secure a better interest rate, which can save you thousands of dollars over the life of the loan. To build good credit, make sure to pay your bills on time, keep your credit card balances low, and avoid opening too many new credit accounts. The best way for college students and new grads to build credit is to get a credit card and make sure you pay it off in full every month. 💳 If you aren’t planning to buy a car in the near future, you have a lot of time to improve your credit!
Buying a new car can be a daunting task! Remember to research different brands and models, compare prices, look into external deals, and build good credit to get a low-interest rate. Happy car buying! 🚗
~Lillian
