Whether you need a ride to school or just got your license, purchasing your first car is exciting. However, many things come with it, like a lot of management. Nothing about purchasing a car while in school will be easy, but prior planning can make the process easier and ensure you have the right car.
Automotive editors acknowledge that purchasing a car is an overwhelming process, and it gets even tougher for teen purchasers. Most banks don’t finance expensive teen car buyers, and you will need low-interest personal loans or cash. Also, your car will be considered unworthy without car insurance if it gets totaled.
Remember, most used old cars don’t have advanced safety equipment. They get low gas mileage and are much smaller than the current cars. On the other hand, purchasing second-hand cars is advantageous as you get a wide variety of cars to choose from with no limits to the current model year. If you want to purchase a car while still in school, here are some essential things to know and how Carvana can help you out!
1. Set a Budget
Defining your budget is essential. Knowing how much you can spend helps you stay focused on an affordable car. You can plan to purchase the car with your savings, but ensure you are aware of additional fees like registration, license plate, and inspection. Other states charge annual tax for owning a car.
If you’re in school and you plan to purchase the car with a loan co-signed by a parent, you should also include your monthly repayments in the budget. Certain costs also depend on your choice of car, your residence, how much you drive, and your insurance rate.
2. Price Your Car
The price of used cars has recently escalated, and it can be difficult to find your dream car at bargain prices. However, there are exceptions, and you can find excellent, affordable, and used cars. In fact, Carvana has the widest selection of cars under $20,000 of any online retailer. Generally, however, original and well-preserved cars from any decade have a premium sale.
Well-known pricing guides like Kelley Blue Book help set the value of older cars depending on their availability and conditions. Instead of selling cars at eBay or auctions, Hemmings gives offers on the past asking prices. Once you find several affordable cars, don’t purchase the cheapest car, but go for the best one.
Your aim is not only to look for a good-looking car but also one that matches your preferences. If you purchase from a private seller, a little conversation with the previous car owner will help you gather information about how the owner cares about the car or feels about it. In these instances, remember to ask about its service records and whether the car has undergone significant work, such as an engine rebuild.
3. Test Drive and Inspection
It is vital to test drive the car you want to purchase because your dreams often don’t match reality. Buying a secondhand car without testing and inspection can be risky. When you purchase a vehicle with Carvana, every vehicle comes with a 7-day Money Back Guarantee, allowing you to drive the vehicle for a full week and even get it inspected by a mechanic you trust before committing yourself to the purchase. When looking for the right car amongst private sellers, bring along a wingman. The wingman will keep you grounded when you look at things differently.
You may need to take the car on a test drive to check on alerts for blue exhaust, odd noises, and smells. However, the reality is you will be checking whether you want to complete the deal or not. If the car is okay after the test drive, take it to a mechanic for a thorough inspection. The best way to locate a reliable and competent mechanic specializing in the different cars is through Yelp.
If everything is good after the test and inspection, consider purchasing it at the asking price. Paying a hundred dollars more is not worth losing it to another eager customer. But if you don’t find the right car, more searches won’t harm you.
4. Pay for the Car
It has been easier to purchase a car than it was for your parents when they were in school in recent years. The internet is flooded with sellers near your area that offer the best-used vehicle deals. You can get the right car by looking at the rankings online based on the type, pricing, safety, and model year. When purchasing a used car, be sure to ask for the car’s history and accident records before making any purchase. If you purchase a vehicle online with Carvana, every car listed on the website has a link to the vehicle’s CARFAX, so you can check for things like maintenance records, number of owners, and anything else that might influence your buying decision.
Most states don’t allow teens under 18 to be the rightful owners of a vehicle, and either a parent or guardian needs to own it. Once you reach the recommended age, they can change their ownership to you. You can use the following payment options to buy your car.
You can purchase your car by paying the whole amount with your savings or getting your parents’ help.
If you can’t afford the cost of your car entirely, you can get it on loan. You can get the car on loan when you are legally over 18 years, but the lender will need your parent or guardian’s consent and signature. You will also need to make monthly payments, or the loan will negatively impact your co-signer credit and your own credit.
Your credit score is an excellent determinant of the interest rate you will pay on your car loan. A good credit score helps you get a favorable interest rate that may impact your general purchasing rate. When purchasing your car on loan, check your credit score, and ensure you pay your car loan on time to enhance your credit score.
5. Be Cautious
When purchasing a used car while in school, you are exposed to unpredictable problems, which isn’t the case when purchasing a new car. Used cars have been used in different ways, and just because it is in good shape doesn’t mean that it doesn’t have unseen issues.
Secondhand car dealers have a way to reduce signs of damage and wear on the car, and some devious dealers are good at rolling the odometer back. Used cars also don’t always come with a warranty, and when the vehicle becomes faulty, you are on your own. To combat that, Carvana offers a limited 100-day/4,189-mile warranty on every car, providing you with some peace of mind even after you make your purchase.
Avoid dealers with crazy deals and cheap used cars. Most used car dealers, like individual sellers, are reliable. It is advisable to find the right used car dealers with your local consumer protection agency or the Better Business Bureau before purchasing.
As it is tempting to buy a used car because of its lovable style or lower price, most used cars don’t have airbags and electronic stability control. When driving a car like this, you are vulnerable to being involved in a fatal crash.
6. Close the Deal
When you are done with your research, know the car maker and model you want, set your budget and have your finances in place, go ahead and make your purchase. Before signing anything, ensure you understand the warranty agreements and financing terms.
After closing the deal and driving off, ensure you don’t miss out on car payments to help you focus on what’s next by joining automatic bill payment.
