I want to buy a car from a Ford Dealership soon. I am only 18 and have one credit card. What would be the best steps to get a good car? Some have told me they have "First Time Buyer" offers where if its your first time buying a car they don’t check your credit score, but I doubt that is true. Some have told me about CREDIT UNIONS and i can get a loan there. How does the whole process work to get a car?
It’s actually a long drawn out process that I went through a year or so ago, and I was 18 also. First and foremost you have to remember that this is your first car and probably won’t be your dream car. Next have a fair amount saved up atleast a thousand. Okay now the best thing to do is either go to a credit union or bank and get a loan. At the dealership they are going to try and get you the highest interest rate possible so they get a larger profit. Stick with the bank and try and get co-signer. Next the bank will tell you how much they will loan you THEN you start looking for a car. Since you have all your financing taken car of your going to get more upfront answers on price and such because the dealership won’t be handling you financing. Now that thousand that should be saved will have to cover taxes and tags which can be pricey depending on you car. Also you’ll have to get full coverage (atleast in my state you do) for you car before you can even drive off the lot so if all possible just get your parents policy because it will only take a few minutes to get that set up and also it will be cheaper in the long run. Paying your first car is very stressful so take someone with you (your parents if possible) because car salesmen will take advantage of how young and naive you are or seem and don’t need that.
First you need to find the car you want and get the price, then the dellerships will help you find financing, or you can go to banks, credit unions or loan companies and find your own financing. Just be sure you can afford the payments and they don’t strech out more then three years. You’ll want to know the interest rates too, if they are too high you will pay two or more times what the car is really worth.
My best advice is take someone who you trust with you, someone whos gone through the prosses before. Good luck.