When it’s time to purchase your first or even second car, you’ve probably spent quite a bit of time considering your options. If you’re planning to borrow money to make this purchase, the costs of auto financing will vary. A traditional lender will usually ask for a 10% to 20% down payment. They may also require you to obtain a co-signer if you haven’t established a credit history or have a low credit score.
Some people may consider the benefits of leasing, rather than purchasing, a new or used car. While the down payments will vary from dealership-to-dealership, you may be able to negotiate this amount. In some cases, a leasing agent may ask for several thousand dollars as a down payment, so it’s important to be prepared for this.
When you lease a car, it’s important to know that your contract will specify the maximum annual mileage. This usually ranges from 9,000 to 15,000 miles, so if you anticipate needing additional mileage, be sure to discuss this with your leasing agent. There may be other options available.
If you’re planning to purchase a used car, prices have recently declined, according to the National Automobile Dealers Association. In 2014, for example, the price of an average used car was $16,025, while in 2016, it was slightly less than $15,000.
You may be interested to know that manufacturer-backed care dealerships are a great place to purchase a used car. These dealerships have “certified” programs for used cars that are three years old and under, and also offer auto financing. In addition to ensuring that these used cars meet mileage requirements, they are also thoroughly inspected to ensure quality standards.
A recent survey showed that 43% of consumers believed they could learn something new at a car dealership. If you’re a first-time car buyer, this can make a significant difference in how much you know about the specific car you’re purchasing. Furthermore, you can also learn what’s entailed in car ownership, including maintenance requirements.
Once you visit a local car dealership, you will be able to test drive a variety of cars to find the best fit for you.