Just graduated? How to buy your first car

Graduating from university is a special occasion and a fantastic achievement.

It brings with it many possibilities, from finding unique work possibilities to securing a career in your chosen field of study.

But you also need to be able to travel to and from your new job, which means that you will need to buy a car.

It can be difficult when buying your first car to know exactly where to start. You will need to contact a financial service and inquire about interest rates for recent graduates. You will also need to know exactly how much you can afford to spend, including the monthly repayments and car insurance payments. If you are interested in buying your first car after graduating read on below for more tips on how to make this dream come true.

Work out your affordability

The first step in making any significant financial purchase, especially a car, is to calculate your affordability for vehicle finance. A good rule to work on is to never opt for more than you can repay over five years, as this is the most common loan term for vehicles. The monthly payments should never be more than 10 to 15 percent of your salary.

Your “disposable” income (money left over after expenses are deducted) is a good indication of how much you can afford a car loan. Your should always have your budget at the front of your mind when looking at cars, as you might otherwise find yourself becoming swept away in the excitement of buying a car. Remember to include fuel costs and other expenses in your budget.

Do some (more) research

Yes, you have graduated and are likely not looking forward to doing more research, but it is vital to do your homework before you go out and look for your dream car. You should look at more than just one make, model or brand of car and consider elements such as fuel consumption, the age of the car, as well as any online reviews for the car.

Researching car options will help you to make a final decision and it can help to ascertain whether or not there are options on the market that you can afford. Some of the cars for sale that you have your eye on might turn out to be bad choices based on your research while others might come out on top. Ensure that you ask for a detailed history of the cars you like, as well as any information regarding the repairs or replacements that might have taken place.

What features do you value?

Before you choose that sporty little red convertible for your first car, you will need to think carefully about what features you want, and which ones you value and need. You should think about what the vehicle will be used for most and which features will add value. For example, if you will be driving through traffic daily then an antilock braking system (ABS) is ideal.

You should make a list of all the features that you value in a car and look for one which meets all of these requirements. Try not to be swayed by the salesman who is offering you an option that is not viable for your needs. It is a good idea to keep this list with you when car shopping so that you know what you are looking for. One effective way to decide on what matters to you in terms of features is to examine your daily routes carefully. If you only drive to and from work and home, and shopping centres and back, then a smaller and more fuel-efficient car is the perfect choice.

Always go for a test drive

Many graduates are eager to purchase a car as soon as possible, which means that some of them forget about the all-important test drive. Not test driving the vehicle will mean that you do not have any idea of how it handles traffic and difficult situations, and there might be problems later which you were unaware of.

A test drive is a vital part of the car-buying process but be sure to do it properly. Do not turn on the radio while test driving and keep talking to a minimum. This will allow you to hear any strange noises the car might be making, such as labouring while driving up a hill or grinding gears upon pulling off.

Ask the dealer if you can drive in peak traffic to get a true feel for how the vehicle handle sit. You should also bring along a friend who is mechanically inclined so that they can listen for any noises you might miss or mistake as minor issues.