Buying a new or used car for the first time should be fun and exciting. Yet, because you’ve never purchased a car before, how do you avoid potential pitfalls? At Panama City Toyota, we created this first-time buyer’s guide to help you out. We want you to drive off our lot in the car of your dreams, confident that you made the right choice and received a great deal. If you follow our guide, you’ll be satisfied. When it’s time to purchase another vehicle or recommend a dealership, we want you to think of us first.
Understand Your Budget
Image via Flickr under CC BY 2.0 by RL GNZLZ
The first step to buying a car begins with you working out your budget. How much car can you afford? If you plan on paying cash, you have your answer in your bank account. You want to keep in mind sales tax, delivery fees, and such, but you can easily stay within your budget.
If you plan on financing, understanding your budget gets more complicated. How much can you afford in a monthly payment? Totaling up your monthly expenses and subtracting them from your income gives you an available number. We don’t recommend spending up to this number on a car payment. You have to have money to pay for car insurance and fuel, plus you still want to have a life. What good can the freedom of having a car be if you don’t have the gas money to go anywhere or the spending money to go out with friends?
Check Your Credit Score
Before shopping for a new or used vehicle you plan on financing, we recommend checking your credit score. Several online services do this for free. Your credit score will determine the interest rate you qualify for, so if you have a low score, you’ll get a higher interest rate. The higher the rate, the higher the monthly payment, so if you can improve your credit before applying for a car loan, you’ll get a lower rate. The lower the rate, the lower the monthly payment, which translates to more buying power for your dollar.
Shop For Car Loans First
Before rushing to Panama City Toyota to buy a car, you should shop around for car loans first. If you’ve checked your credit score and are happy with it, you should be able to secure a good loan. A low interest rate doesn’t automatically make the loan good. If you save 1% on your interest rate but have two more years on your loan, are you saving money?
It would be best if you keyed on finding the right balance between interest rate and loan length that falls within your budget. Our finance department can help you. They are experts at finding the best deal regardless of your credit history. We’ve streamlined the process as well, allowing you to get pre-approved for a car loan online.
Assess Your Vehicle Needs
Understanding why you need a vehicle goes beyond simple freedom of movement. Students might want something inexpensive to buy and efficient to operate. Business professionals might wish for something more luxurious and spacious. New families often want to have the room available in their vehicle to support future additions to the family. If you have a long daily commute, you probably want a blend of comfort, reliability, and efficiency.
We also recommend you make a list of those features you need, whether it’s 4×4 capability, passenger volume, or technology. Remember that what you need and what you want are two different things. You can make a list of what you want, separate from what you need, which you can use to help make a final decision if necessary.
By creating a list of needs, you’ll avoid wasting money buying a car with features you won’t use. For instance, a truck with 4×4 capability costs thousands more than one with only two-wheel drive. If you never go off-road, why pay for a feature you’ll never use?
Do Your Research
Now that you’ve assessed your budget, checked your credit, and have an idea of what type of loan you qualify for, you should have a good idea of which vehicles to shop for. We recommend researching new Toyota cars, trucks, and SUVs online at Panama City Toyota. We have all the latest information on 2021 models to help you find the right vehicle.
If you plan to buy a used car, we recommend checking the value of any vehicle you’re considering. Several companies provide this service free. Knowing the value of a vehicle before you enter negotiations will help you get the best deal possible. At Panama City Toyota, we have a vast selection of pre-owned Toyota vehicles. And because of our sales volume, our used inventory of trade-ins spans nearly every manufacturer. Our selection constantly changes, so we encourage you to search online for used vehicles often.
Take A Test Drive
Don’t ever buy a car without taking it for a test drive. It may have all the features you love and be in excellent condition, but the feel of the car may not suit you. It could be the comfort of the seat or the feel of the road, but you’ll never know until you take it for a test drive.
Have It Inspected By A Mechanic
A good time to have a mechanic inspect a potential vehicle would be on your test drive. Most dealerships have no problem with this. If you find resistance to getting a mechanic to look at a car, you should be concerned. A mechanic will give the car a full inspection and provide you with a detailed report of what, if anything, needs attention. You can then make an informed decision on whether to buy the car, ask for repairs first, or negotiate the price down accordingly.
Buying a new or used car for the first time should be an exciting experience that ends with you in the vehicle of your dreams. Whether you live in Lynn Haven, Callaway, or across the bay in Southport or Panama City Beach, Panama City Toyota will make your car buying experience one you’ll want to repeat and recommend to friends and family.
At Panama City Toyota, we have an expansive selection of new and pre-owned Toyota cars, trucks, and SUVs ready to sell at great prices. We invite you to contact us with questions or visit our showroom. One of our friendly, professional staff will show you those vehicles that fit your needs and budget and let you take your favorite for a test drive.
