For many students, May marks the beginning of graduation season. Whether you’re a high school graduate heading off to college or a college graduate heading to a new job, you’ll need a way to get their graduate’s guide to buying a new car tips.
Have you ever browsed through potential jobs and the requirements mentioned the phrase, “must have own car?” Well, a car for a new graduate is a must, but it doesn’t have to kill your savings or drain your pocketbook. Purchasing your first car shouldn’t be a daunting task, so we’ve made a graduate’s guide to buying a new car to put your mind at ease!
Buying A New Car Tips For College Grads
1. Apply for a professional bank account
Your student bank account can last for a few months after you graduate, but you will need to change it sooner or later. When you are a student or a new graduate, you are seen as high risk, but having a professional account can help you to get better deals on loans (for example, you can ask for the prime rate of less 1%)
2. Budget: New or Used?
Be honest with yourself about how much of your salary you are willing to part with for your car. Be conservative with the amount as a car comes with extra costs such as fuel, a maintenance plan, an insurance plan, and random tire changes. So there’s no shame in buying used vehicles for college graduates.
You can also consider buying a demo car, which is substantially cheaper than brand new ones. It will be second-hand and have a few kilometers on the odometer, but it has never really left the dealership.
3. Visiting a dealership
Ensure the person you take with you to the dealership is knowledgeable about cars and knows how much you are willing to spend for them. Do not rely solely on salespeople as they may be tempted to sell you anything and everything to pursue a higher commission.
When viewing your first car at the dealership, be sure to get a good feel of it. Open the doors, sit inside, look at everything correctly, and test drive to get a sense of its functions in motion.
After deciding on a specific car, the next step is to finance it. If you’re buying from a dealership, the salesperson will lead you to someone in the finance department who will ask you for your ID number and other necessary information.
They will then send this information on your behalf to banks and ask for them to finance your purchase. Banks can be quick to respond and will be able to let you know whether or not they will help you finance your purchase, what the monthly installments will be, as well as the interest rate they will offer.
5.Buying A New Car First
After you are confident of your decision to buy your first car, you will need to get your documents in order. You will need:
– A signed employment contract
– Three months of bank statements (which can be from your student account)
– Your payslip, or you can request a dummy payslip from your employer
payslip documents will then process on your behalf. The dealership will help find insurance for you, as most dealerships won’t allow the car to leave their premises without insurance. After this is done, you can collect and enjoy your new wheels responsibly.
The Car Factory is committed to bringing you the very best in reliability, integrity, and quality of any new or used car. Visit our website to check out our range of new or certified used vehicles, and then make an informed decision based on your needs and budget!
Recommended Read: Questions To Ask When Buying A Used Car