Rules For First Time Car Buyers

For young people just arriving at the age when they can begin driving a car or those rapidly approaching this milestone in their life, much of many conversations with their parents turn to them getting their own car.

If you're a parent about to engage in this type of subject matter with your son or daughter (As I have now for a couple kids), there are some very real reality checks you need to bring very much to light with your child.

Clearly, the most obvious is to engage in the discussion of just how they are going to pay for their first car. Now... needless to say that if you as a parent are of the financial means that you are going to take care of the financial responsibilities of car ownership for them, then obviously you need read no further. If however, you insist on the major portion of the participation be owned by your son or daughter, you will definitely want to consider the following points.

One detail that you want to make sure that you bring home to the thought process of car buying for your son or daughter is that as long as they own the car; they are going to be paying for the car... even if they pay cash. Cars are an expense... they are a monthly hit to everyone's budget... so they'll never really stop paying for the car... and boy don't we know this!

As parents, we know that a vehicle can at times be very hard on even an adult sized budget. So, you really want to be very certain your child understands those additional money grabbers such as maintenance, gas, tires, batteries, and of course that little monthly expense know as insurance.

A very good rule of thumb for young people dreaming of buying their own car is that they at least can put 20% cash down on the negotiated price of the car. In addition, do not drive off with car that you cannot have paid off in a maximum of 48 months.

The 20% down and the 48 month rule of buying for young people will help ensure that the car that they buy doesn't immediately (and perhaps for the entire life of the loan) have them financially upside down in the car. If you are playing the role of the parent here... stand very firm on this.

Forever owing more on your car than it is worth, is not a strategy that anyone going into a car deal should allow... especially a young first time buyer where budgets are tight and building their credit history is crucial. Believe me, just about everyone who ignores the 20% down and the 48 month financing rule, puts themselves at the bottom of a tall hill to climb.

As you've no doubt been able to determine, this article deals with the premise that the fist time car buyer's car is going to be of the used variety. If you and your first time buyer are looking on the new car side of the lot then there are a whole bunch of other parameters and rules that you must follow... or risk literally spending thousands of dollars too much.

If it is indeed a new car purchase, you're still in the right place. That is if you visit my website. Once there you'll find all the tips, tools, and personal advice that'll you'll need to ensure that your car purchase is a good one for you.

Article Source: http://www.articlemonk.com

For more valuable information on car buying, be sure to visit www.acarbuyersguide.com where you'll find information on topics such as getting the best car deals, best time to buy, & more.

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