| Are you someone planning to buy your first car? | | | | store pretty easily. When you use them, make |
| Then you must probably be a high school student, | | | | sure you pay them off within a month. Do not |
| a college student or have recently been | | | | dare overspend as it is going to reflect badly on |
| employed. Buying a car for the first time can be a | | | | your credit history. In fact, the balance should not |
| pretty exciting experience. Here are a few tips | | | | reach more than 50% of your limit. Do this for 6 |
| below to help you out. | | | | months. It will let you show some sort of a credit |
| * Decide on which car to buy first. Be reasonable | | | | history to the lender. |
| and choose one that you can make a 20% down | | | | * Asking your parents, a relative or a close friend |
| payment on. If you can not do that, choose a | | | | to cosign with you is a good idea if you do not |
| different car. It is the best if you buy a car that | | | | have an established credit history. This means |
| you can pay off within 4 years. | | | | your cosigner will also be signing the loan papers |
| * Other than the loan payment, remember that | | | | along with you. It also means that your cosigner |
| you also have to pay for the gas, insurance, | | | | will be responsible for payments on your loan if |
| batteries and a lot other things. | | | | you default. It is a matter of great risk and |
| * There is nothing shameful in buying a used car. | | | | delicacy and you have to make sure that your |
| Buying a used Toyota Camry or Honda Accord is | | | | cosigner knows what he is getting into before he |
| actually a pretty good idea since they will give | | | | signs. |
| you safety, dependability and freedom from | | | | The most important barriers you are going to |
| costly repairs. | | | | face when you apply for an auto loan for your |
| * Do not expect to get an auto loan for a car | | | | first car are: |
| which is more than 5 years old. You will have to | | | | * Your lack of credit history will make it difficult |
| pay cash. | | | | to convince the lender |
| * There is no return policy for cars. You can not | | | | * Finding financing for a used car more than 5 |
| give it back because you do not like it after 2 | | | | years old is difficult, if not impossible |
| days. So decide well. | | | | * Insurance for your car will be pretty high |
| * Most probably you do not have a credit history | | | | * Dealing with car repairs and other maintenance |
| if you are a first time car buyer. This is one of | | | | costs will rake off quite a bit of your income |
| the biggest hurdles you will face in getting a loan. | | | | As a first time buyer, you should research well |
| You need to establish credit. You can get a gas | | | | before you decide on finding an auto loan for your |
| card and credit card from your local department | | | | car. Happy car shopping! |