It’s that time, and you can hardly believe it. With your newly obtained license, you’re ready to hop on in and drive—who knows where!
Car refinancing may help you later, giving you the option to refinance your higher loan and payment, but what can you do now? And how do you choose what option is best for you?
These ideas should help:
- Do you work full or part-time? How much money do you bring in a month? Do you live at home or will you be on your own? What other bills will you have? Asking questions like these is a good way to decide on how much monthly you can afford to spend on a car.
- Write down what you can afford onto a slip of paper. Take the paper with you when searching. Don’t go beyond your budget.
- Don’t extend the loan just so you can afford the monthly payment. Remember, you will still be paying interest. It’s probably going to be high and this will affect your payment. A good rule of thumb: The fancier the car, the fancier the interest rate.
- Consider a used car. Less glitz, but more power when it comes to the length of time it will take you to pay off your loan.
- Look around. Don’t take the first car you “love,” but search until you get the best car for the best price.
Buying your first car should be a personal venture; the car’s for you, after all. Just make sure you get a car that you love and can afford












