First-Time Car Buyer? Get the Facts Before You Shop

Car buying decisions can feel overwhelming—models, colors, features, new or preowned, leases, insurance costs and more. Fortunately, VCCU makes the most important decision as easy as can be. We're committed helping first-time car buyers feel confident so they can drive without buyer's regret.

Before shopping for a car, take a few minutes to give yourself the upper hand in getting the best car deal.

Set your budget first

Don't visit a car dealer without first determining how much you can afford, including a ballpark insurance payment into the calculation. Also consider the cost of ownership. An exotic or luxury car will cost much more in maintenance, repair and insurance than a regular car. We have this handy Creating A Budget course where you can create your budget with confidence.

Get preapproved

There's no cost for you to apply for a VCCU auto loan. It's the easiest and most accurate way to determine your actual loan rate and monthly payment. With our preapproval in hand, you can focus on negotiating the best purchase price so you own your car sooner and avoid being steered into high-cost dealer financing.

If you're unsure how much car you can afford, use our Auto Budget Calculator to determine the price range you can comfortably manage.

How will you use your car?

If you spend lots of time on long commutes, comfort would be a higher priority. If you're into the outdoors, four-wheel drive may be important. And for those who frequently transport kids, older parents or big pets, passenger access is something to consider. Honestly assess how you actually use a car to help you focus on models that best suit your needs.

New or preowned?

The idea of a brand new car is always exciting, and manufacturers may offer discounted financing to move cars off their lot before they depreciate. But a preowned car is usually a better deal. The original buyer immediately took the big depreciation hit the minute they drove the new car off the lot—typically about 20% of a new car's price. Another advantage of buying used can be lower insurance costs.

Some dealers push buyers toward leases to make their car seem more affordable. However, you never build any equity since you're essentially renting their car and are still on the hook for their car's depreciation, damage, or costly excess mileage charges. It can become an endless financing trap if you're upside-down when the lease term ends, and you may have to roll residual costs into yet another lease.

Do your car research

Once you know the amount you can afford and the type of car you need, start with online research. Websites such as CARFAX, Kelley Blue Book and Consumer Reports are helpful for comparing models, features, safety ratings, reliability, resale value and prices.

Dealerships thrive on distraction

When visiting a car dealership, stay focused. You've done your homework, your VCCU financing is approved, and you know the car you want. It's helpful to bring along a trusted friend or family member to be your second set of eyes and ears. Don't let the dealer steer the conversation or try to confuse you by combining the cost of the car and the financing. These tactics are how they make their biggest profits.

Do not share any financing details with the dealership. Instead, have them focus on writing down the best price for the car as if you were paying cash. Keep the financing completely out of the discussion until you've agreed on a price you like. As with any big purchase, shop around to verify you've found the best price. Visit other dealerships and see what they offer you before you commit. Take your time and don't let anyone pressure you into a rushed deal.

Much more about car buying

We've gathered even more helpful information on this one page, including:

• Considerations when leasing
• Buying a car from a classified ad
• Avoiding unnecessary expenses
• And much more

First-Time Auto Buyer program

We have a First-Time Auto Buyer program for members who are at least 18 years old, have proof of income, and have worked for their current employer for at least 12 months. Talk to us about this special program.