Three Tips for a Student’s First Purchase
March 11 2019, Auto Loan Kelowna
Buying a vehicle is an important step, especially when it comes to your first vehicle or when you buy your first car and are a student. In such a situation, planning is essential, and you must make sure that you look beyond your current needs.
Indeed, the purchase of a vehicle when studying involves different considerations than buying a car while in a stable career.
As a student, your budget is generally smaller, but it is likely to change in a few years. Your needs are also likely to change in the short and medium term. A car, on the other hand, is usually a long-term investment, especially if you finance the vehicle.
That’s why it becomes very important to plan out your purchase to avoid getting stuck with a car that is better suited for a student, but no longer fits your needs after. So here are three tips when looking for a car as a student.
As a student, debts accumulate, we all know this. Getting a student loan is usually necessary, but you have a choice to not get too big of a loan when buying your next vehicle. The idea here is to plan ahead and buy a car that doesn’t stretch your budget and gives you some flexibility down the road.
Financing terms of 72 or 84 months should be taken only if you know that the vehicle meets your needs for the period of time. That said, it’s likely that you will be making more money after you graduate and your budget will thus increase. The best case scenario is to take out a loan that can be paid off when you graduate, or maybe a year or so after. That way, you are free to do what you want and get a better car when you have a job and a bigger budget.
Think About Space
You may not need a lot of space now, but that could change when you start a family. Even if you follow our previous advice and your car is paid at the end of your studies or soon after, you don’t necessarily want to sell the car immediately. So, try to pick a vehicle that can meet your changing needs over the next few years. In doing so, you will maximize your investment.
Reliability Should be High on Your List
The last thing you want is a vehicle that breaks down the morning of your final exam. Ideally, you also don’t want to be paying every month to fix various problems with your car. In short, do some online research on the reliability of different models available to you, and choose the least risky option.