Top 10 College Car Buying Tips
While college students may be known for qualities like determination, purposefulness, and intelligence, one thing they are not known for is having cash. So, when it comes time for a college guy or girl to buy a car, it's important to find a car that fits the student's unique needs and is within a fairly limited budget.
Here are some tips for buying a car on a college budget:
Buy UsedA: Especially if you're a freshman who won't be earning a substantial income until graduation, now is not the time to get into a bunch of debt. Despite the allure of a brand new car, you can find a reliable and attractive car for a lot less when it's a few years old. This is because cars depreciate quickly, so use this to your advantage. Honda, Toyota and Nissan are known for their durability.
Pay in cash if possible: If you have saved some money by working in the summer, or you can borrow money from your family, buy a car right away. While car financing can create credit, it's hard to predict what your cash needs will be during college. Paying for a car on top of the stress of exams and other aspects of student life is not an ideal situation.
If you can't pay cash, fund wiselyA: Don't overestimate the amount you can pay each month because if you default, your car could be confiscated. If this happens, you will lose all the money you have already paid and will be back to square one without a car. Take a closer look and find the right balance between interest rates and payment amounts for your situation. If you are an older person, this is a good opportunity to start earning credit, but don't take on more than you can handle. If not, consider asking a parent or relative with good credit to sign your loan.
Take into account the consumption of gasolineA: Fuel isn't cheap these days, and it's a cost that adds up quickly, especially if you're commuting a significant distance. While you may love the look of an SUV or other vehicle notorious for guzzling gas, cut your costs by choosing a smaller, more economical option. This is of course most important for those who live off campus and will need to drive more than someone who lives in an on-campus dorm.
Check with your insurance company before buying: College students don't usually get the best insurance rates based on their age and general lack of driving experience, so it's even more important to know how much your insurance will cost before you decide to buy an expensive car.
Don't shop alone: Although the figure of the shady car dealer is a stereotype that does not apply to all salesmen, this picture has some basis in fact. Dealers in search of a sale (and commission) may omit certain vehicle information or gloss over issues. Make an appointment with one of our mechanics. They can meet you at the location of the vehicle and conduct a thorough pre-purchase inspection. If any repairs are required, the mechanic will also provide an estimate so you know the total cost of ownership.
Research before you buy: See how much parts and labor can cost when regular maintenance is needed or when problems occur. If you book one of our mechanics for a pre-purchase inspection, they can give you an idea of what to expect in terms of costs regarding the most common issues that go wrong with that particular vehicle. Set aside money every month just for car maintenance and repairs.
Don't buy the first car you like: Even if you have carefully studied the model and consulted with your insurance, it is worth looking around the shops. Elsewhere, there may be a similar car at a lower price or in better condition.
Take your future car for a thorough test drive: Test the car in different areas and at different speeds. Test the car on slow streets and highways, paying special attention to maneuverability. Also, test all of your turn signals, headlights, windshield wipers, heating, air conditioning, and other features to make sure they are working properly.
Learn the fine art of bargainingA: Whether you choose to buy from a dealer or an independent party, the price tag is not set in stone. Don't be afraid to point out issues like tire wear or a less-than-ideal interior and then offer to pay a little less. The worst thing that can happen is that they make a counter offer or simply refuse; the price will not be higher.
When preparing to buy a car as a student, you are unlikely to be disappointed if you follow these tips. While this may or may not be your first car purchase, it is still a learning experience that will influence your future car buying decisions, so do everything in your power to make it a success.
