cancel
Showing results for 
Search instead for 
Did you mean: 

First time car loan buyer here!! Any advice?

Regular Contributor

First time car loan buyer here!! Any advice?

Just got approved for my first auto loan. $8,500 loan at 3.99% with penfed (36 months)

 

Any advice would be appreciated...Thanks



Starting Score:EX: 713 EQ: 698
Message 1 of 8
7 REPLIES
Regular Contributor

Re: First time car loan buyer here!! Any advice?

Don't get a payment that leaves you living pay check to pay check. Make sure you test drive it several miles and listen carefully for any weird noises or you get weird burn oil smells.
If you really can't pay for a used car cash, pay this one off as quickly as possible. Save the money and run the car to the ground. With that saved money, pay cash for your next car is possible.
Don't rush into another car loan once this one is paid. Debt free is the way to be.
Message 2 of 8
Established Member

Re: First time car loan buyer here!! Any advice?

DU556 gave great advice. I'll just add do not fall in love with a particular car. You have secured financing but it doesn't mean the dealer won't try to haggle you. Be ready to walk away if they give you a hard time. Read everything before signing, do not hand over the check unless you are 100% sure it's the vehicle you want and the paperwork is correct.
Message 3 of 8
Regular Contributor

Re: First time car loan buyer here!! Any advice?

To add on top of everyone else for that amount sounds like you will be buying pre-owned which isn't a bad thing but yes definitely be careful on what they try to sell you and be smart bring a mechanic with you if you have one that will and that you trust and be sure you aren't spending that money just to have to buy another car in a few months!     Don't buy for looks and pay more than just the payment if you can and lastly GAP insurance and if they offer extended warranties be sure to ask about those!!!    

Starting Score: 537
Current Score: 713
Goal Score: 775


Take the myFICO Fitness Challenge






Message 4 of 8
Regular Contributor

Re: First time car loan buyer here!! Any advice?

I am going to have to disagree with not buying for looks. I was forced into financing a car I never wanted and regretted that decision a week after getting the car. After two years, I traded it in for a more aesthetically attractive car for a little bit more...but with paying more than the requirement, my car note went from 290/month to 193/month in less than 2 years of owning it. 

 

Get a car that you like because this is an investment (a bad one at that lol). You don't want to wake up the next morning and not enjoy driving it. But also make sure it's a reliable car. You can have your cake and eat it too Smiley Tongue 

Garden Until Jan 2020

Total Credit Line: 88.3K Inquires: TU 5 | EX 3 | EQ 4
Starting Score: TU 690 | EX 694 | EQ 694 [01/20/12]
Current Score: TU 770 | EX 771 | EQ 758 [2/19/19]
Goal Score: 780


Take the myFICO Fitness Challenge
Message 5 of 8
Regular Contributor

Re: First time car loan buyer here!! Any advice?

But here is where I disagree not everyone has the luxury and stability to get what they want for their money start out with a vehicle that is reliable first and foremost and then in a year or two (I upgraded in a year) get what you really want with the establishment you have created and for lower payments and apr Smiley Happy    It's a win win doing it that way most people just jump into it because they love how a car looks not realizing how expensive the maintenance is or of course agreeing to ridiculous terms because it's the car they want so they are ok with paying a crap ton more but that's not smart to do.    It's smart to be sure you go about it the right way and that way when you do get your dream car it will then be affordable to you as well Smiley Very Happy

Starting Score: 537
Current Score: 713
Goal Score: 775


Take the myFICO Fitness Challenge






Message 6 of 8
Regular Contributor

Re: First time car loan buyer here!! Any advice?

You got a point. But if they have the finances to get a reasonably attractive car (btw this is subjective) I would say go for it. Keyword "reasonable". I wanted a two door 2009 Mitsubishi but was forced into a 2004 honda civic...Once 2 years passed I jumped into a 2014 ford fusion titanium and haven't regretted that decision yet. Both cars are reasonable but I hated that civic 2 weeks in.

 

But I definitely agree with doing it the right way, and that's not going into a 2019 Mercedez Benz for a first-time car buyer lol. 


@Girlzilla88 wrote:

But here is where I disagree not everyone has the luxury and stability to get what they want for their money start out with a vehicle that is reliable first and foremost and then in a year or two (I upgraded in a year) get what you really want with the establishment you have created and for lower payments and apr Smiley Happy    It's a win win doing it that way most people just jump into it because they love how a car looks not realizing how expensive the maintenance is or of course agreeing to ridiculous terms because it's the car they want so they are ok with paying a crap ton more but that's not smart to do.    It's smart to be sure you go about it the right way and that way when you do get your dream car it will then be affordable to you as well Smiley Very Happy


 

Garden Until Jan 2020

Total Credit Line: 88.3K Inquires: TU 5 | EX 3 | EQ 4
Starting Score: TU 690 | EX 694 | EQ 694 [01/20/12]
Current Score: TU 770 | EX 771 | EQ 758 [2/19/19]
Goal Score: 780


Take the myFICO Fitness Challenge
Message 7 of 8
Regular Contributor

Re: First time car loan buyer here!! Any advice?

Oh by all means if you have 1k a month set aside for hiccups on your preowned vehicle GO FOR IT!!!     Especially if that's your dream car I just don't want the excitement of getting the dream car and it having a lot of issues because they were just happy to get it crush their love and money of owning one Smiley Very Happy      Just go about it smart is all.    I have bought over 10 cars in my life I know it's not much and a few were even for other people BUT I was burned when I was younger and I wish someone sat me down and was like LOOK I know you LOVE this car BUT ........LOL   The car ended up dying on me a few months after owning it (I just paid it off) and so I was out over 10k I was beyond hurt....but only because I loved the car and wasn't smart about it that is all I'm saying Smiley Happy

Starting Score: 537
Current Score: 713
Goal Score: 775


Take the myFICO Fitness Challenge






Message 8 of 8