Experts You'll Need: Buying Your First Car

Keys to researching and buying your first set of wheels.

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Buying your first car is an exciting and momentous occasion. In fact, there might be no better feeling than clutching the wheel at "nine and three" and driving off the lot. With that said, it's a big purchase that requires significant preparation. From researching the type of car you want to comparison-shopping, the actual purchasing experience can feel a little overwhelming.

And while the process is indeed quite complicated, grasping a few fundamentals can help you navigate this road with ease. Make sure you understand the basics of car buying (like financing, warranties, and the negotiation process) before you even speak to a salesperson.

In fact, you might want to seek advice and input from professionals who tackle this process every day. Here are a few experts:

1) A Financial Planner

How much can you actually afford to spend? This is the single most important piece of information as you begin car shopping. Before you visit a dealership or even bother searching for cars online, you need to establish a realistic budget. Set up an appointment with your financial advisor to figure out what you can truly afford.

Aside from your monthly payments, you'll need to consider the following costs: fuel, car insurance and other incidentals, such as ongoing maintenance fees (tune-ups and oil changes aren't cheap!). That's roughly an additional $150-$300 each month, so definitely don't forget to factor that in.

Bottom line: make sure you leave your advisor's office with a clear understanding of what you can and can't afford. Later, when you're staring at the car of your dreams, you'll start rationalizing how you can afford it. Don't do it—if you agree to a higher monthly payment than what's realistic, you'll end up missing payments and ruining your credit. No car is worth that. (Not even that slick Porsche.)

2) An Auto Loan Banker

After you've chosen a car that's in your budget, it's time to start thinking about financing. (Unless, of course, you're able to pay for it in cash!) While your car dealership will offer financing in-house, it's likely you'll save money by financing your purchase elsewhere. Stop by your local bank and call your local credit union (if you're a member) to see what they offer. You'll probably get a better rate and you'll have more negotiating power when you get to the dealership.

Don't forget to keep an eye on the length of the loans you're offered. A three-year loan will cost less overall than a five-year, even though the latter will have a lower monthly rate. It might be appealing to pay less each month, but the rates are usually higher on long-term loans, meaning you'll end up spending thousands more in the long run.

3) An Auto Salesperson

Once you're at the dealership, a salesperson will approach you immediately. Make sure you like—and trust—this person, as you'll be spending a significant amount of time together. As they give their sales spiel, if they seem unsure about a feature or financial information, make sure they confirm with a superior before you sign on the dotted line. You do not want to end up paying more because your salesperson skimmed over a pertinent detail. (Yes, this happens.)

4) An Insurance Agent

Before you drive off the lot, call your insurance company and let them know you just bought a car. Your agent will help you understand how best to keep you covered, and they'll even be able to arrange for the new policy and explain all the details immediately over the phone. Note: If you already have auto insurance, a new purchase is usually automatically covered for a certain amount of days, but just be sure to call your agent or stop by your local agency to add the new car ASAP.

Happy driving!

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