First Time Used Car Buying Tips
Is it your first time buying a vehicle? It may seem like an overwhelming process, but it’s easier than you may think. Whether you're looking for a car to get you to school, college classes or work, here are some tips to help get you started.
Examine Your Budget
Before you even step foot into the showroom, you need to know how much you can spend on your new vehicle. Take a realistic look at your finances. Even if you can afford to pay for the vehicle upfront in cash, you still need to factor in the costs of gas, insurance, and maintenance. Although a down payment usually isn't required, making one is a good idea as you won't have to borrow as much and it lowers your monthly payment.
Examine your cost of living, and calculate how much you can afford to pay each month. Experts advise that it's best to keep your car payment below 15% of your monthly take-home pay. You should also consider the loan terms. Auto loans generally range from 36 to 84 months, and the longer the loan, the smaller your monthly payment is. However, with a longer loan, you end up paying more in interest. Selecting a less expensive car and putting down a larger down payment for a shorter term can give you a shorter loan term.
Sales Hours
| Monday | 9:00AM - 7:00PM |
| Tuesday | 9:00AM - 7:00PM |
| Wednesday | 9:00AM - 7:00PM |
| Thursday | 9:00AM - 7:00PM |
| Friday | 9:00AM - 7:00PM |
| Saturday | 9:00AM - 5:00PM |
| Sunday | Closed |
Work On Your Credit
Just as important as figuring out your budget is knowing what your credit score is. As a first-time car buyer, you might not have bad credit, or you might not have a lot of credit. Finance companies prefer to lend money to people who have an established credit history. If you have time, about six months before you want to buy a car, you should establish credit with a company that issues monthly reports to the top credit agencies. Aim to spend less than 50% of your limit, and pay off your monthly installments in full.
According to Experian, at the end of June 2020, the average credit score for used-car loans was 657, but almost 4.5% of used-car loans went to people who had scores under 500. With a credit score in the low 700s, you might get an interest rate of around 6%, but if your score is in the mid-500s, your interest rate might be closer to 18%. After looking at your credit score, our finance managers can contact local financial institutions to help you secure an auto loan that fits your budget.
Determine Your Needs
After establishing your budget, do some research about what vehicles in your price range can fit your needs. Be honest about what you're looking for in your first car. Do you want something to get you to class or work during the week? Or do you plan to use it for weekend adventures? What type of weather do you expect to encounter? Take a look at your lifestyle and driving conditions. Research what types of vehicles you're considering. Our sales staff can help you narrow down your options.
Just as you know what you want, make a list of features that you don't need. For instance, do you really need a navigation system if you plan to use your phone? And although having a heated steering wheel and massaging seats would be nice, it's probably best to save those luxury items for when you can afford them. These features can quickly add up and force you out of your budget.
Take a Test Drive
Even if you do a lot of research online about your specific vehicle, nothing beats actually getting behind the wheel and getting a feel for the vehicle. Each vehicle has so many variables, including seat height, outward visibility, and comfort, that you can only determine its suitability by trying it out for yourself. Plan to spend at least 30 minutes driving, and try to merge onto highways while also starting and stopping to get a good feel for the vehicle.
Why Buy a Used Vehicle
Buying a used vehicle can come with a certain stigma. Some people assume that buying a used vehicle means that they're putting money toward something of poor quality or worn out. But that's far from the truth as buying a used vehicle can save you money in the short and long term. At Rydell Outlet Center, we specialize in used vehicles that are generally priced less than $10,000, so you can find plenty of options. Some of the benefits of purchasing a used vehicle instead of a new one include the following:
- Less expensive. Used vehicles usually cost less compared to new vehicles due to mileage, depreciation, and potential wear and tear.
- Less depreciation. Once you drive a new vehicle off the lot, it loses a considerable amount of value. On the other hand, used vehicles already have depreciation factored in, saving you money in the long run.
- Lower sales tax. Since the sales tax is based on the vehicle's total price, used vehicles typically come with a lower tax bill.
- Lower insurance rates. The rates for car insurance are based on several factors, including the vehicle's price. As a result, the insurance rate will be cheaper if your vehicle is cheaper.
Shop at Rydell Outlet Center
To help you through the car-buying experience, we offer no-haggle pricing at Rydell Outlet Center. This means the price tag you see on the vehicle is the price you will pay. You don't need to worry about negotiating the cost. Unlike other dealerships, our sales professionals also don't receive pay based on commission, so you won't receive an upsell when shopping for a car. There's no added benefit for our sales staff to sell you the most expensive vehicle, so you can shop for the vehicle that works best for your needs.
Buying a vehicle for the first time doesn't have to be a complicated endeavor. At Rydell Outlet Center, we believe that shopping for a car should be a stress-free experience. Contact us directly or stop into our Grand Forks dealership today, and check out our huge selection of vehicles.
Used Car Buying Misconceptions
There are many misconceptions about buying a used vehicle:
Purchasing a used vehicle will inevitably be a “pressure filled” experience.
Here at Rydell Outlet Center we believe that buying a used vehicle is supposed to be a fun, exciting and memorable experience. There are a few ways Rydell Outlet Center makes this possible. One of the ways we do this is we have no haggle pricing. What does this mean for our customers? It means the price tag on the vehicle is the price you will pay, no negotiating necessary.
You should finance through your own personal bank.
While financing through your own bank may be an option, we work with dozens of banks to ensure you get the best interest rate possible upon approved credit. We make the buying process nearly seamless, as we will work with the banks on your behalf to finance your vehicle. It’s never been easier to buy a used vehicle.
When shopping at a dealership, you can expect an upsell.
Upsell simply means the salesperson will try to sell you something more expensive than what you need. Our sales staff isn’t paid on commission, unlike many other dealerships, which means our team is genuinely interested in getting you the vehicle that you want. There is no incentive for our sales staff to upsell our customers, as they would not receive additional compensation for selling a more expensive vehicle. This is another great way Rydell Outlet Center takes the pressure out of the car buying experience.
Here is what you can expect when shopping at Rydell Outlet Center:
An open, honest conversation about what type of vehicle you wish to purchase. What wants, needs, concerns, or general questions do you have? Our sales staff will take the time to get to know you, and your expectations about the car buying process. You can expect a low stress and pressure free environment. We truly want you to love what you drive, and we’ll do everything we can to make that a reality.
What are my options when buying a used vehicle?
Here at Rydell Outlet Center we specialize in used vehicles generally priced less than $10,000 dollars and here are some reasons on why to purchase used: