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Taxate's avatar

First time buying a vehicle, can someone help? (need advice)

Asked by Taxate (52points) July 5th, 2019

Ok, so before I get into the details I am 22 years old with a credit score of about 715–730. I have a outstanding debt of about 10k (student loans) and a DTI (debt to income) of about 15% . I make about 90k-100k a year, have had my job for about a year, and am looking at trucks anywhere from 30k-40ish. I plan to put down 15–20% on any truck I may get, and plan to buy from a dealership.

So I’m just curious to peoples opinions and personal experiences with purchasing a new/used vehicle. I have little or no experience when it comes to this don’t want to get denied by the bank for a loan haha Thanks! :)

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10 Answers

YARNLADY's avatar

Do a lot of research online regarding pricing and financing. But, first decide what type of car is best for you.

seawulf575's avatar

I agree with @YARNLADY…decide what type of car is right for you. But also, do some research into reliability as well. Some cars and trucks have historically bad problems. Even if it is new and you have a warranty, the engineering and design of some cars/trucks results in a lot of shop time and then, once the warranty runs out, you get to pay for it.
Given the financial information you gave, you shouldn’t have any problem getting a loan, though I don’t know what other bills you might have (CC, rent/mortgage, etc). But really, these days, if you want to buy something, you can get a loan. The catch there is the interest rate you will pay. Shop around to see who can give you the best interest rate. Talk to your bank, look at other banks or lending institutions. Some insurance companies are giving loans. Ask at the dealership what sort of interest rate they are offering.
Grill your dealer on ALL the charges they are putting on you. A lot of times they just want to give you a monthly payment you will go for but don’t want to tell you all sorts of “extras” they are adding in without verbally asking/telling you. Examples are PMI insurance, extended warranties, etc. READ THE PAPERWORK BEFORE SIGNING.
And lastly, don’t ever pay sticker price. If you are buying new, as soon as you drive the vehicle off the lot, you will lose several thousand dollars in value so you want to get the purchase price down as low as possible. Dicker. Don’t settle and always be ready to walk away.

tedibear's avatar

This goes with the above excellent answers.

Do NOT tell the salesperson what monthly payment you can afford. You need to know that, they do not. If they know what you can afford as a payment, they will multiply that up to a total car amount. They might have a car they can sell for $20,000 and still make a profit, but will sell it to you for $22,000 because you can afford it. Get the best total price for the vehicle you can. Then, if the monthly payment from that total fits in your budget, move forward.

gondwanalon's avatar

Get a low interest loan approved for a vehicle before you go to a dealer. That way you can offer to pay the dealer cash. You’re more likely to get a good deal when you have cash.

kritiper's avatar

Everybody who has responded so far have excellent tips.
When you test drive a vehicle you are very interested in, take it to a reputable mechanic/auto shop and let them look it over and give you their opinion. They may check all the running gear, engine compression check, for leaks, major crash damage repair, etc. It will cost you a few dollars but would be well worth the investment.

janbb's avatar

I’ve had very good luck for several years buying a car from a dealer that is pre-owned; maybe a year or two old or even just six months old. You are not paying a premium for brand new and don’t have the depreciation in value it will suffer as soon as you drive it off the lot. Of course, do drive it and take it to a mechanic for vetting. Then figure out your best offer and stick with it. Make sure there is still a warranty on the car.

Have you figured out why you want/need a truck? I’ve seen several oversize ones get stuck while trying to maneuver a small space.

LuckyGuy's avatar

Almost all brand new vehicles depreciate about 15–20% the moment you drive them off the lot.
A one year old vehicle is a much better deal.
That said, some vehicles hardly depreciate at all. Subarus are famous for it. At the other end of the spectrum are vehicles like the Nissan Leaf.
Look up the rate for the models that interest you.

Don’t be dazzled by the whizbang electronics offered. In 4–5 years whatever is there will be considered a fossil. A 10 year old Navigation system that cost $2500 now looks ridiculous and horribly outdated. Stick with basics if you can.

seawulf575's avatar

I found a lot near me last year that sold used cars. I got a 2017 Toyota Corolla LE with about 2,000 miles on it for about $15k. New ones at the time were going for about $21k – $23k. It was a leased car that was turned in after one year. If you look around, you might find a similar sort of lot.

Taxate's avatar

Thanks everybody for your feedback! I plan on going to a few banks and seeing if I qualify for a loan BEFORE going to the dealership and making on offer. But I’m looking for a decent Truck capable of hauling and getting its use out of it, seeing as I work in the Oil and Energy industry.

Appreciate everyone’s opinions and advice :)

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