Summer is slowly approaching here in Michigan, giving us time to start planning those upcoming road trips. If purchasing your first car is on your to-do list this summer, here are some tips to help you prepare.
1. Be Realistic
Take inventory of your cash flow. How much do you have saved up and how much are you willing to spend? Be sure to factor in maintenance, insurance, gas and car repairs.
2. Look at Your Needs, Not Your Wants
When it comes down to it, you need a reliable car that will safely take you from point A to point B. A sunroof, built in GPS, and heated seats are all wants. Stay focus on your needs.
3. Know Your Score
If your car is being purchased in your name you’ll need to know your credit score. It will determine your interest rate if you plan on getting a car loan.
4. What’s Your Down Payment
It’s a good idea to have a down payment even though it’s not required. A down payment will lower your monthly payment. The rule of thumb is for every $1,000 you put down your payment will be $20 less a month.
These are just the first steps to take towards purchasing your first car. Be sure to shop around and do some research on your ideal car. If you’re interested in financing your car, Michigan First has some great rates on auto loans for First Gear account holders. You can check them out here.
Stay Young & Be Free,