Whether you’re heading off to college or hitting the job market right out of high school, getting a reliable car is essential. However, it can be difficult to get a new car if you don’t have much cash on hand. That’s why we’ve compiled a list of tips for affording your first car. You can buy used, learn how to save better, boost your credit score, or find a co-signer.
Your first car should probably be a used car, as it offers the most bang for your buck. Not only are pre-owned vehicles more affordable in terms of the sticker price, they also depreciate at a slower rate. You’ll also save when it comes to taxes and registration fees (due to the lower purchase price), and used cars require a lower down payment.
Learn to budget properly and start saving early. Saving money is a skill, so even if you’re headed to college and don’t work full time, you can still learn tricks that will help you afford that down payment on a used car. For instance, try to only cook at home instead of going out to eat, make coffee at home, and look for part-time jobs.
You’ll need a good credit score to finance a used car. You can optimize credit by paying bills on time, using less than 30 percent of your credit limit, and being smart with your money. If you don’t have much experience with credit, you can apply for a credit card to build your score — just be sure to make payments on time.
Get a co-signer
If you’re getting your first car, getting a co-signer will make things simpler — especially if you have no credit. Having a co-signer is a major responsibility, because if you can’t make payments it’ll affect your credit as well as that of your co-signer.
With these tips at your disposal, financing your first car shouldn’t be daunting. Be sure to visit Hampton Mitsubishi for the best deals on both new and used vehicles.