How to Buy Your First Car as a Student
Buying your first car as a student is an exciting milestone, but it can feel a bit overwhelming. With so many factors to consider, it’s important to take it step by step to make sure you’re making the best decision for your situation. Here’s a simple guide on how to buy your first car as a student at Boyer GM Ajax!
Step 1: Set a Budget That Works for You
As a student, your budget is likely limited, so it’s important to be realistic about what you can afford. Our expert finance team can help you navigate your current financial situation. Do you have savings? Need to finance your car? Need help estimating monthly payments, interest, insurance, and maintenance costs? Whatever it is, we can help.
A good rule of thumb is to spend no more than 15% of your monthly income or 20% of your total monthly expenses on your car payment. Don’t forget to account for other costs like fuel, regular maintenance, and parking fees.
Another thing to think about is General Motors offers a Student and Graduate Bonus program, giving you a discount on select vehicles as a first-time buyer!
Step 2: Determine Your Payment Plan
Many students have little or no credit history, which can make securing a car loan seem like a challenge. But don’t worry! There are still plenty of ways to finance your first car. Here are some options that could work for you:
- Co-Signer: If your credit isn’t established yet, a parent or guardian can co-sign your loan. This can help you get better loan terms, but remember, your co-signer will be responsible if you miss any payments, so it’s super important to stay on top of your loan.
- Credit Union Loans: Some credit unions often offer student-friendly auto loans with lower interest rates than traditional banks. If you’re a member, reach out to see what deals they have for first-time car buyers.
- Special Financing for First-Time Buyers: At our dealership, we offer special financing plans designed just for first-time buyers like you. Our finance team works with a variety of lenders to help you secure a loan that fits your budget.
Not sure if you should finance, lease, or pay cash for your first car? Check out our guide on whether you should Finance, Lease, or Pay Cash for your vehicle to help figure out which option might be the best fit for your situation.
Step 3: Understand Your Insurance Costs
Insurance can be a big expense for a student, especially for first-time buyers. Young drivers often face higher premiums due to age and inexperience, but you can take steps to reduce the cost. Be sure to shop around and compare quotes from different insurance providers to find the best rate.
Step 4: Prioritize What You Need, Not What You Want
No one’s first car is usually their dream car, and that’s okay! As a student, you need a car that’s reliable, affordable, and gets you where you need to go without breaking the bank. While it might be tempting to go for a flashy vehicle, the most important things to focus on are safety, reliability, and cost-effectiveness.
If you’re thinking about buying a used car, buying from a dealership is a smart move. It can give you peace of mind with no hidden fees, no hidden damages, and a full Carfax report. Here at Boyer GM Ajax, we make sure all our certified pre-owned (CPO) vehicles go through a rigorous multi-point inspection before you get your vehicle.
Step 5: Book Your Test Drive and Take It for a Spin
Once you’ve narrowed down your options, it’s time to book a test drive! Get a good feel for the ride and inspect the car for any signs of damage or wear, especially if you’re buying used. At Boyer GM Ajax, we’re always transparent about the vehicle’s history, including any accidents or major repairs, we’ll make sure all your concerns are addressed and taken care of.
Step 6: Seal the Deal and Drive Away
After giving it some thought, you’re ready to seal the deal! Make sure you fully understand your monthly payments, interest rates, and any extra fees. Don’t worry, our finance team is here to guide you through every step and answer any questions you have, so you can feel confident and informed in your decision.
Buying your first car as a student is a big decision, but it doesn’t have to be a hard one! With the right preparation and team, you can make an informed choice that suits your needs and budget. Keep these steps in mind as you navigate the car-buying process, and soon you’ll be cruising to class in your very own GM vehicle. If you’re interested in learning more, don’t hesitate to contact us!