For young adults, buying a car is a major purchase. Being a first-time car buyer can be daunting for many reasons. While the best way to learn is by doing it, it could prove quite costly, to the tune of thousands of dollars, with mistakes affecting financial stability and credit ratings for years altogether. So, if you’re new to the world of financing and credit, learning some important tips can help a great deal. here are some important auto financing tips you should know before buying your first car. 1. Considering alternative financing options Most first-time buyers take out auto loans, with many choosing to employ the dealer’s lenders. However, know that you can look for and find your car loan with third-party financing, which will almost always turn out to be cheaper. First-time buyers who have savings or checking accounts can ask their banks about their car loan options, post which they can ask local credit unions to see in case they offer lower interest rates. Shopping for alternative financing options with two to three different lenders is always better. This is an important auto financing tip. 2. Negotiating prices First-time buyers need to learn how to negotiate, irrespective of whether they’re buying the car from a dealership or a friend.

Auto insurance is a deal between you and an insurance company that protects you from financial cost in should an accident or theft occur. It is only in times of need that you feel the requirement for and appreciate having good insurance. Good insurance shouldn’t cost an arm and a leg – not if you shop around and follow these below-mentioned auto insurance tips. Here are some useful tips on reducing auto insurance premiums. 1. Obtaining multiple quotes Comparison shopping for quotes from multiple insurance companies is probably the best place to begin. Premiums vary by a lot, as surprising as it may sound. According to the Auto Insurance Study, quotes for the same policy ranged from a monthly premium of $504 to as much as $1,400. 2. Type of car you drive Another factor which has a significant impact on car insurance premiums is the kind of car one drives. According to a study on the most and least expensive cars to insure, annual rates ranged from $3,800 (Mercedes S65 AMG convertible) to $1,110 (Honda Odyssey LX). So, the cost of car insurance needs to be determined according to the car you are looking to buy. 3. Combining policies If one happens to have multiple insurance policies, then there exist two good reasons for combining them with one carrier.

One of the top money-saving tips is to never buy a new car. New cars lose value in the first two years of purchase. Buying late-model used cars, on the other hand, costs as much as 20% less. This doesn’t tell the entire story, since used cars have their own set of issues. In real life, there are a whole lot of factors when it comes to deciding between new or used cars. These are listed below: 1. Purchase costs Here, the clear winner is used cars, with price being the biggest argument in their favor. Buyers can get a 3–4-year-old used car for less than 50% the price of an average new car. That being said, purchase costs only show how much the car costs to buy, not own, which includes everything from the purchase price to depreciation, insurance, repairs, maintenance, interest payments, and more. According to a Consumer Reports article, the longer a car is kept before trading it in, the less it costs every year to own. So, if one keeps their car till the very end, the cost/year is so low that there is no benefit of buying a used car for them. 2. Insurance costs This factor between buying new vs.

Rubber tires have been around for more than 100 years, prior to which it was either wooden or metal wheels on cars. Rubber tires are taken for granted today. For a longer life out of your tires and the best ride in your car, tires shouldn’t be an afterthought. Before beginning any trip, it’s important to take a look at a few car tire safety tips before you run into any problems on the road. 1. Checking the inflation Underinflated tires could reduce gas mileage and make controlling the vehicle very difficult, leading to tire failure – so proper tire inflation is very important. Drivers need to use a tire gauge and make checking their tire pressure a monthly activity. Tire pressure recommendations from the manufacturer are usually listed in the vehicle manual or on a label affixed to the door jamb or the driver’s door. Also, tire pressure should be checked when the tires are cold, i.e., when the car has been driven at moderate speed for less than a mile or hasn’t been driven for three hours. 2. Baldness Tire baldness occurs over a period of time, and tire tread should feature a minimum depth of 2/32-inches. Drivers need to employ a tread depth gauge for checking the same.

The first thing one toils over after buying a car is whether or not to purchase a new car warranty. There is no one-size-fits-all answers to this question, and every car owner must take into account their comfort levels with extended car warranties. There are three types of warranties. First, a new car warranty is for vehicles still under the original manufacturer’s warranty, extending it up to 4 years. An assured warranty is for used vehicles up to eight years old and were driven less than 120,000 kilometers. Lastly, a used car warranty offers the most limited coverage, typically only cover up to $2,000–3,000/claim if the vehicle is more than eight years old or has been driven more than 120,000 kilometers. Here are the reasons why an extended car warranty makes sense and is beneficial: 1. Guaranteed repairs Since tune-ups and maintenance is always required by a car, extended warranties make repairs affordable. Since there is no way of knowing how much the repairs will cost and when they will be needed, this is the most practical reason for purchasing extended car warranties. 2. More comprehensive coverage If the question on your mind is “When there’s a dealer’s warranty, why go in for another one?”, the answer is that such warranties are typically extremely limited.