Buying your first car is a very exciting time! When you aren’t familiar with the process of car buying it can feel intimidating. However, with a little preparation you will be well on your way to getting on the road in your new vehicle. Check out five steps to buying your first car!

Know your budget

• Understanding what you can afford will help narrow your focus on vehicle options when you begin your search. You need to consider things like whether you have the funds for a down payment, how much you can afford per month to pay for a loan, insurance costs and what your income level is. Doing this first will help ensure that you can afford to pay for your new car without breaking the bank.
• Check out these uself tips for Developing a Budget

​Get Preapproved for financing

• Unless you’ve saved up enough to pay for the car in cash, you will have to research financing options. When looking for financing it is important to consider your interest rate, your loan term and any fees or costs associated with financing. Many of these factors will be determined by your credit score.
• Start your research with our Loan Rates 
• Begin your loan preapproval online and Start a Loan Application

Decide what cars to look for

• After you figure out a budget and gain your preapproval, it is time to research which cars will fit within that amount. You will need to determine whether you are getting a new or used vehicle, your mileage preferences, any special features and more. Everyone has different preferences but making sure you are staying within your budget is most important. Keep in mind that when you are looking at car prices, you also have to factor in the ‘out the door’ price. This means that you have to consider additional dealer fees, taxes and warranties that may be added to the cost of the vehicle. 

Head to the dealership

• When you start searching for your car, you can shop in-person or online but ultimately, it’s very important to get behind the wheel of the car you are considering to take it for a test drive to ensure it’s a good fit. As you get closer to making your decision, you may consider getting the vehicle inspected. 
• Be ready to negotiate the price of the vehicle at the dealership. Make sure you know the value of the car you are looking to purchase by doing research on NADA or Kelley Blue Book so that you can go into negotiations with confidence and knowledge.

Learn about GM Student Discounts

Finalize your purchase

• When you have an agreed upon purchase price, work toward finalizing your purchase. Make sure you are reviewing all the paperwork before you sign and that no additional fees are added to your agreement that you haven’t already discussed. If you don’t understand something don’t be too shy to ask for clarification.

Buying your first car is such an accomplishment and PFCU is here to help you along the way!

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