5 Tips for First-Time Car Buyers

Are you in the market for your First Car? That's a pretty big deal but we can help you! Our guide should help make the process a lot less stressful!

1. Set Your Budget





Before heading to the dealership, decide on a budget. Be realistic with your car budget. Don’t buy more car than you can afford. A good rule of thumb is to keep the purchase at or below 20% of your yearly salary. So, if you earn $40,000 per year, your budget is around $8,000. While the best option is to pay for the entire vehicle in cash, sometimes that’s impossible. Then, you’ll need financing.




Usually new cars lose up to 60% of their value within the first 3 years. Buy Smart! Avoid buying used car from a private seller. There’s a lot of risk involved. Buying and selling a car at a dealership is a lot easier and more secure.

2. Buy Used

3. Do Your Research





Once you have an idea of your budget, do some research to see what vehicles in your price range fit your driving requirements. In this day and age of Internet accessibility, it has never been an easier to do the research Online. If you’re looking for affordable fun, check out our list of Best Quality Cars Under $10,000. And if you’re willing to spend a little more for something more substantial, explore our list of Vehicles Under $30,000.




When you've narrowed down your dream car list, it's time to think about how you'll finance the purchase. Unless you've saved up enough money to buy a car outright with cash, you'll need an Auto Loan.

Down Payment Matters

Save as much money as you can for a reasonable down payment. This will be a good sign for lenders and will allow you to obtain a lower interest rate, which will lead to low monthly payments. When you put more money down, this is taken off your initial loan. This will not only decrease the payments, but it may also affect the interest rate.

Good News!!! We are partnered up with lenders, who ask ONLY 10% Down for First-Time Buyers!!!

4. Explore Your Financing and Purchasing Options

Get a co-signer

Even if you have a secure, well-paying job, your interest rate may be quite high when looking through financing offers. To avoid this, get a co-signer who has a good credit history. This will positively impact the interest rate on the loan and lower your monthly cost.

Qualifications*

  • Must be age 18 or over
  • Never have financed an auto in your name before
  • Proof of 12 month verified, continuous employment history and current 30 days of pay stubs with minimum gross income of $1,600
  • Proof of residence and auto full coverage $500 comprehensive and collision deductible insurance required
  • No negative credit records, including medical, student loans, or collections
Want to know if you can qualify? - Apply now

5. Enjoy the process!





There is only one time in your life that you can purchase your very first car so make it as enjoyable as possible with Right Price Auto TN! If you have any questions, feel free to call at 865-362-0101 and discuss the program with one of our sales consultants.