Buying Your First Car 🚗

Buying your first car is a big milestone and a big financial move. If you’re not sure where to start, how to research, or what questions to ask, you’re not alone. Most people don’t get taught how to do this.

This guide breaks it all down, so you know exactly what to look for, where to find real answers, and how to protect your money in the process.

1. Get Clear on Why You Need a Car (Before Anything Else)

Before you even start browsing, ask yourself:

• How often will I be driving?

• What kind of trips will I use the car for? (Commuting, weekend trips, college, work, etc.)

• How long do I want to keep this car?

• Do I need all-wheel drive or extra space?

This helps you narrow your options right away. You don’t want to overbuy or underbuy. A high-end SUV doesn’t make sense if you’re commuting short distances solo, and a tiny two-door car won’t cut it if you’re constantly driving friends or hauling gear.

2. Figure Out What You Can Afford—All In

Don’t just focus on the price tag or the monthly payment. Owning a car means ongoing costs, like:

• Auto insurance

• Gas or electric charging

• Routine maintenance (oil changes, brakes, tires)

• Registration and title fees

• Unexpected repair

Add all of this into your budget before deciding what you can afford. A helpful rule is to keep total car-related expenses under 15% of your monthly take-home pay. So if you bring home $3,000, aim for no more than $450 total going to car expenses.

3. Research the Best Cars for Your Situation

Look for vehicles that are reliable, fuel-efficient, affordable to insure, and safe.

Good Resources:

• Edmunds.com: Great for reviews, comparisons, and pricing tools

• Kelley Blue Book (kbb.com): Helps you understand fair market prices for new and used cars

• Consumer Reports: Offers unbiased ratings on car reliability and ownership cost

• YouTube/Reddit: Real-world feedback from owners

Make a shortlist of 3-5 cars that fit your needs and budget.

4. Compare New vs. Used vs. Certified vs. Leasing

Each option comes with pros and cons.

New

• Pro: Brand new, latest features, full warranty, no history

• Con: Most expensive, fastest depreciation

Used

• Pro: Cheaper upfront, slower depreciation

• Con: May have wear, tear, or unknown issues

Certified Pre-Owned (CPO)

• Pro: Thoroughly inspected, comes with warranty, less expensive than new

• Con: Still more expensive than a standard used car

Leasing (renting 2-4 years)

• Pro: Lower monthly payments, always under warranty, newer models

• Con: No ownership, mileage limits, fees for wear and tear, no equity at the end

Buying (pay in full or finance with a loan)

• Pro: Build Equity, unlimited mileage limits, long-term value

• Con: Higher upfront/down payments, higher monthly payments initially, maintenance after warranty

For most first-time buyers, used or CPO cars are the sweet spot. Leasing can work if you want short-term flexibility and low payments, but buying usually gives you the most long-term value.

5. Check for Total Cost of Ownership

Ask:

• What will this car cost me over the next 5 years?

• How much is insurance for this model?

• What’s the MPG or battery range?

• Will I need premium gas or expensive parts?

Tools:

• edmunds.com/tco.html (Total Cost of Ownership calculator)

• fuelly.com (Real-world MPG reports from drivers)

• your insurance company’s website or app to get a quote before buying

6. Check Your Credit Score and Get Pre-Approved

If you’re financing your car, your credit score matters a lot. The higher your score, the lower your interest rate. Check your score for free at:

• Equity Bank’s credit tool within online banking

Then, get pre-approved for a loan through your bank or credit union before visiting a dealership. This protects you from overpriced dealer financing.

7. Shop Smart

Use sites like Autotrader, Cars.com, Carvana, Vroom, or Facebook Marketplace (if private, always meet in a public and bring someone with you)

Always check the Vehicle History Report (from Carfax or AutoCheck) to make sure the car hasn’t been in major accidents or floods.

8. Test Drive and Inspect

Don’t skip this step. If buying from a dealer, ask questions like:

• Can I take it to my own mechanic for inspection?

• What’s included in the warranty?

• Can I see a full breakdown of fees?

If buying from a private seller:

• Meet in a safe, public place

• Never bring cash to the first meeting

• Always bring someone with you

• Ask for the car’s title and service records

9. Don’t Get Pressured at the Dealership

Car dealerships can be overwhelming. Stay in control by:

• Having your own pre-approved loan

• Saying no to extras you don’t need

• Reading everything before signing

• Asking what each fee is and why it’s there

If you don’t understand something, stop and ask. You’re allowed to slow the process down. You can even take the paperwork home and review it.

10. Final Steps Before You Drive Off

Once you’ve agreed on the deal:

• Add the car to your insurance policy before you drive it off the lot

• Double check that the title is clean and in your name

• Set reminders for oil changes, tire rotations, and registration renewals

Final Thought

Your first car doesn’t need to be flashy, it should be affordable, reliable, and right for your lifestyle. Taking time to research, compare, and ask questions doesn’t slow you down, it protects your money and your future.