Buying My First Car

There comes a time in a young person’s life, where it feels like the time is right to buy themselves their first car. Being independently mobile feels like you have found a place on the right side of the asphalt and the world is now your oyster.

Okay, let’s be real. You’ve been taking driving lessons for the past few years and have proudly worn the badge of a learner. However, transitioning from a learner to a driver is not the same for everyone. By this time, you may have heard of other’s success and misconceptions about the buying process and the nuances that come along the way.

When I set out to buy my first car, I thought it would have been like 1,2,3 and that I was buying the perfect first car. There were steps that I missed and lessons to be learnt but overall, I was not prepared for every aspect of my purchase.

Market for lemons

There is an economic theory called, “the market for lemons”. This is where the seller has more/better information about a good (in this case cars) being sold. This theory is very applicable to the used car industry. Therefore, because the seller wants the sale and also get the car off the lot, you will sometimes never know what is wrong with the car until a problem presents itself.

When I set out shopping for my car, I travelled cross country to find what felt to me like the perfect first car. Little did I know I was buying…a lemon. When I first took the car home, my dad highlighted that the tires needed to be changed as soon as possible. In my first two weeks I had a tire completely blown out in the thick of the night but fortunately I wasn’t far from home and had help arrive in no time. I’ve experienced issues that were not easy to fix at a garage, as a matter of fact, an expensive issue occurred with the transmission within another two months. This experience taught me to not rush the buying process and bring a mechanic to check the car before I buy it.

Insurance

One of my most memorable moments with my purchase was getting insurance. I had just gotten my driver’s license and started shopping around for the best quote. When they asked how long I’ve had my license, some companies scoffed or laughed immediately and quoted me for at least $400,000 with a high of $500,000 (roughly $2500 to $3200 USD). My word, I had no idea that insurance for first time car owners was this tedious. I almost felt like giving up, but I needed it for my job and there was no backing out.

Fortunately, I was able to get a quote that was reasonably priced and manageable through my employers at the time. Procrastination is considered a thief of time and looking back I would have gotten my driver’s license much earlier given that I was a seasoned driver. If I didn’t have the assistance that I did I would gone spending hundreds of thousands in insurance.

Financing

Financing for your car purchase can be one of the most stressful parts of the process. If you are importing a vehicle, there are things to look out for like the deposit for the car, broker fees and customs fees. Banks are less likely to provide financing for a car being imported and that would have left you with no other option but to take an unsecured loan or pay in cash. I chose the route of purchasing locally because I actually got to see the car on the spot and would bypass the importing fees previously mentioned. This made it easier to take out a car loan, however, that too had fees such as processing fees, deposit required depending on the year, registration, and insurance. I personally had to be very bold in carrying out all these things on my own but at some points I got really overwhelmed throughout the process.

Gas Prices

Increasing gas prices was something you’d hear most drivers complain about. As soon as I got on the road it became very clear, if I don’t have to drive and proclaim my mobile independence then I won’t drive. I remember filling my tank and having to be constantly refilling as I made longer journeys. This was and continues to be very taxing. Can carpool enter the chat? The thing is gas prices are not something you can escape. The advantage of really owning your car is to get you where you need to go in comfort and maybe on time if there is no traffic. I call this the price you must pay for convenience and trust me yesterday’s price is definitely not today’s price.

Takeaways

1.????Stop procrastinating learning to drive. It may take a while to get you comfortable on the road but once you are then you can go ahead and get your license. This affects getting motor insurance when the time is ready.

2.????Have your vehicle assessed before you buy it. It can save you dollars and peace of mind knowing you didn’t buy a lemon.

3.????We can’t fight gas prices. Carpool if you can.

4.????Shop around as much as possible for the best financing options as well as insurance.

5.????Plan your car purchase well in advance if you can in order to reduce being overwhelmed.

There’s so much more that is involved in your first car purchase, but this is a synopsis of what my experience was like.

How was your first purchase? Feel free to comment and help someone out there to be more aware and less overwhelmed.?