Buying Your First Car

BUYING YOUR FIRST AUTOComprando seu primeiro automóvel

When you buy your first car, you can spend hours examining the different makes, models, dealers and even the colors of your new potential vehicle.

But when buying a new car, it is so important to buy a car loan. Often, you can find a better interest rate through your local bank or credit union than you would find with reseller financing. Also, if you are not financing through the dealer, you may have more bargaining power to reduce the amount your car costs. Read our best tips on how to buy your first car.

Determine how much you can afford

The first thing you should do is know the value of the financing, either by your own bank or by the dealer's financial and determine how much you would be able to pay. A good rule of thumb is to spend only what you can easily pay over a period of three years.

Of course, how much you can spend on a new car will determine what kind of car you decide to buy. Be realistic about what you can afford and do not overextend your budget. It is important to keep your budget always in mind when buying a car and not getting carried away by emotion as this will help you avoid some of the mistakes people make when buying a car.

Search for a car

Now that you've set a monthly amount according to your budget, it's time to actually start looking for a car. You can buy at the dealerships - if you want to pay financed - but do not be afraid to look at the classifieds and other sources online. You can find some great deals through these sources.

However, if you decide to buy your car from a private seller, you should always have your car inspected by a mechanic you trust before you buy it. A good mechanic can tell you if the car has suffered an accident, if it has been totaled, or if there are other major problems with the vehicle.

This step is absolutely essential if you are buying from a private seller. If the seller seems reluctant to let you drive the car to a mechanic, this should be a red flag. Also, make sure you know the differences between buying a new and used car.

Complete the completion of loan information

Once you choose the car and negotiate the price, you will have to pay for the car. You can contact your bank with the final details. Generally, they will need the title or vehicle identification number to process the loan. In addition, you will need to give them the title as soon as they get from the previous owner of the car.

If you are securing financing through the reseller, you can elaborate all the details at the time of purchase. However, make sure you are getting a good interest rate by not signing up for hidden fees and read the fine print.


Do not automatically buy a new car. A car is a depreciable asset, which means it decreases in value over time. The greatest amount of depreciation occurs in the first two or three years of a car's life. You can save a lot of money by buying a car two or three years old.
Let's say you are buying your second car. You can make more money by selling your car yourself instead of trading it. Selling the car directly will probably give you more money than if you simply traded it at the dealer.
Do not stand upside down in your car. This happens when you roll your previous balance of your trade-in for your new car loan. This is bad because if you tried to sell your car, you could not repay the loan by selling the car. In addition, if your car was totaled or stolen, the insurance check would not pay the loan amount.

While not always realistic, it is much better to save money and pay for a car with money. It will free up your income since you will no longer have a monthly payment. In addition, you can save money with interest.
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