Tips for Financing Your First Car

Tips for Financing Your First Car

Whether you just received your driver’s license, or the time has come to trade in the family car, Key Cars congratulates you on the decision to finance your first car.

As the premier seller of new and used vehicles throughout Milford, Manchester, and Middletown, we help thousands of drivers find and finance the vehicle of their dreams. That all starts with developing a solid game plan!

Continue reading to pick up a few tips for financing your first car. Once you reach the end, we encourage you to contact us right away!

Car Dealership

Part One: New vs Used

There’s no other feeling in the world like pulling away from the dealership inside your new ride. One of the biggest decisions you’ll need to make leading up to this moment is whether to finance a new or used vehicle.

Buying Used

For drivers with a smaller budget, a high-quality used car, truck or SUV is often a smart choice.  In fact, one of the best reasons to choose a pre-owned vehicle comes down to one word – depreciation.

Simply put, depreciation is the gradual decrease in monetary value over time. Drivers who finance a brand-new car can expect its value to depreciate up to 25% over the first few years. Buying a used car helps you avoid taking this hit while still driving a like-new ride!

Buying New

Never mind that glorious new-car scent, financing the latest model and trim has its own advantages to explore. If peace of mind tops your list, a new car is worth the investment. Most new cars are backed under warranty and include the latest safety tech.

If you’re hoping to secure a nice deal, dealerships tend to devote their best incentives and interest rates for the showroom models. If you’re a recent college grad or active member of the military, make sure to inquire about any special programs the dealership might offer you.

Car Dealership

Part Two: Taking Account of Your Needs

Next to buying a home, buying your first car is often one of the biggest financial decisions you make. In order to hit the streets with confidence, it’s a good idea to map out your needs vs. your wants. A few questions you might want to ask yourself include:

  • How much of a down payment am I willing to make?
  • Am I expecting any major life changes in the next few years?
  • Do I know the cost of inspections, maintenance, and weekly gas?

How Much Car Can I Comfortably Afford?

While our friendly and experienced pros inside our finance center are willing to help you find the answer, it ultimately will fall upon you to determine how much you’re willing to finance.

The average American driver keeps their car, truck, or SUV up to 7 years. Likewise, the typical auto loan is anywhere from 24 to 60 months.

To get a clearer picture, we encourage you to use our handy car payment calculator. Enter the vehicle’s info, your preferred down payment, and term length before receiving a potential payment plan.

Part Three: Get Pre-Approved Financing

To get the ball rolling in the right direction, Key Cars allows you to apply online through our secure site. Once submitted, one of our managers will quickly be in touch to discuss a few options and patiently answer your questions.

Before you know it, you’ll be cruising the streets of Milford, Manchester, and Middletown inside your very first ride!

Contact Us

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