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So, the time has come for you to buy your first car here in the
U.S. Be sure to also read about Establishing Credit.
If you have not yet begun building a credit history, you may find buying a
car a bit more difficult. It will almost certainly be reflected in a higher
interest rate. But this large scale purchase is certainly one way to dive
right into the American economic system. Keeping in mind that car
dealerships want to sell you a car and the salespeople
want
their commissions, if it is possible to sell you a car, they will find a
way. It is up to you, however, to be certain they do not take advantage of
your lack of experience with their way of doing business.
The sale price of the car is not all you will need, either. Remember to
figure in the cost of license tags and car registration. If you are working
with a car dealership, they will take care of this and include the cost in
your total. You will also have the expense of car insurance now. Learn more
in our section on Car Insurance.
NEW OR USED -- That is the Question ...
Arguments for Buying New
If you buy a new car, you can be certain of its receiving proper care and
maintenance from the beginning. This will ensure a longer life and, most
assuredly, greater resell value when you prepare to buy your next car. With
good care and regular maintenance, you should have little or no trouble
anticipating the costs related to your new car. While the monthly payments
on a used car may seem more manageable, unexpected repairs must also be
planned for with a financial cushion.
Arguments for Buying Used
It is usually easier to pay for a used car outright, if you cannot secure a
loan or prefer not to have car payments. It is also easier to get your
monthly payments lower than on a comparable new model.
If you like luxury, but have limited funds, this is the best way to get what
you want.
Beware When Buying Used : If you are budgeted only for car payments on a
used car or use all of your available cash, leaving no reserve, you may find
that repair bills are beyond your expectations! Warranties on used cars <if
you have any at all> rarely cover the things you need repaired.
Things to Look for in Buying a Used Car :
Lower mileage on the odometer. It is usually estimated that a driver will put
10,000 miles on a car per year. If you find a car with considerably more, be
sure to check everything out carefully. Keep in mind, however, that a lot of
highway miles on a car are less damaging than a lot of city miles.
If the maintenance record is available, it is reassuring to know that the
car has had regular oil changes and good care. Make sure the car will pass
state inspection OR find out from a certified mechanic exactly what it will
cost to repair. <Requirements vary from state to state.> Don't take the word
of the seller without having it first checked by your own mechanic.
Whether You are Shopping for New or Used
Determine the things that are essential to you to have in a
car. You may require air conditioning, automatic transmission, air bags,
and absolutely HATE blue. Make a clear-headed decision as to these essential
qualities and don't back down under the pressure of the moment or a
smooth-talking salesperson.
Prioritize other features as most or least desirable, for example:
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I really
would like :
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I'd prefer
not to have :
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a good tape
player
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only 2 doors
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air
conditioning
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power windows
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Power steering
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automatic
transmission
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child locks
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blue
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Keep
in mind that, while saving money on such extra costs as air conditioning, you
may find later that this greatly limits the appeal of your car at resell
<depending upon your geographical location>. Another consideration: a
two-door car is less expensive, but if you have children, the wear &
tear can be considerable, not to mention the inconvenience and discomfort;
especially if you will have a child-safety seat to deal with.
Financing
If you can get financing anywhere, you can generally get it through the
dealership, but that is likely to be at a higher interest rate. Your own
bank may be able to give you a car loan at a better rate, but this depends
on the climate of the market at any given time. Also, if your
place of business uses a credit union, these often have very good rates.
Government offices <federal, state, and local gov't>, educational
institutions, and hospitals often have credit unions available for their
employees. Read more about these is our section on Banking.
Leasing a Car
If you use your car a great deal for your work <especially for your own
business> and are able to take tax advantages for this, you may be a
candidate for leasing a car. While the cost of leasing a particular make and
model of automobile may make it more appealing, keep in mind that once the
leasing period is over, you own nothing -- you have nothing for a trade-in
and nothing to sell. So, unless there are tax advantages for you, this is not
something we recommend for the average person.
Also see our sections on
Establishing Credit and
Car
Insurance
as well as Roadside Assistance.
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MurthyIndiaDotCom & Murthy
Immigration Services
Pvt. Ltd.
2004
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