THURSDAY, JUNE 15, 2023
Buying a car for the first time might seem daunting. You have to consider financing, maintenance, budgets and insurance. However, with research in hand, you can keep your vehicle protected. Keep these tips in mind as you prepare for a new set of wheels.
1. Have a Budget in Mind
In this day and age, most new vehicles cost over five figures. Every piece of your car will cost money. So, before you buy the most expensive vehicle on the market, take a look at what you can actually afford. It’s often best that you have a fair amount of savings put away to ensure you can make loan payments. Also have a financial cushion available in case of maintenance or damage bills.
2. Finance the Car Responsibly
Many, if not most, young people take out a vehicle loan in order to buy the car from the dealer. Your lender will expect you to repay the loan. By not repaying your loan, you open yourself to various penalties. These might include late fees, credit score reduction and even vehicle repossession.
First-time car buyers should take their car payments seriously. You will likely have options on how to repay your loan. You might be able to determine the length and value of your loan, as well as interest rates. Take the time to decide how long you want to carry vehicle debt, and how much you can afford to pay for your loan. Doing so will help ensure you never miss a car payment.
3. Carry Car Insurance
Once you buy a vehicle, you likely have to insure that car. Most states require their drivers to carry minimum levels of insurance. If you don’t have insurance, you might face penalties, including the loss of driving privileges. Likewise, your lender might require you to carry coverage beyond the state limits.
Consider elements of coverage like collision, liability and comprehensive insurance. They can help you in case you have an accident in your new vehicle. Also ask your insurer about gap coverage. Gap coverage can often protect you while you still have a car loan to pay off. If you total your vehicle, and your car’s actual cash value is less than what you owe on the car, this protection might help you repay the difference on the loan.
Buying your first car requires care and consideration. But, with the right attention, you can increase your fiscal responsibility. If you need more information, explore our website and request a policy quote.
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NOTICE: This and all content is developed from sources believed to be providing accurate information.
The information in this material is not intended to be used as tax or legal advice. Please consult with a tax and/or legal professional
for detailed information regarding your individual situation. Some of this material was developed and shared by Lohman Companies to provide information
that may be of interest. Lohman Companies is not affiliated with the named representative, broker-dealer, state- or SEC-registered investment advisory firm.
The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
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