First-Time Car Buying

Whether you are searching for a truck, SUV, or sedan, Frandsen can help finance your first vehicle.

How Much Can I Afford?

First-time car buyers should start the car-buying process by speaking with a lender to determine their buying power. This can be completed with a pre-qualification.

What is the pre-qualification process? Pre-qualification is an informal process where you can meet with a Frandsen lender to review your financial information. The primary purpose is to generate an idea of how much you can afford. Make sure to provide enough details to depict your financial condition accurately.

Researching Vehicles

Now that you know how much you can afford, it is time to focus on researching vehicles. It is recommended to begin the research process simultaneously with the pre-qualification process. These qualifying questions can help you eliminate vehicle options. Does the car have:

• Remote Start

• Heated Seats

• Leather or Cloth Seats

• Power Windows

• Sunroof

• Specific Exterior/Interior Color

Your research should also identify the vehicle’s affordability, dependability, and active warranties to ensure the driver against preexisting mechanical malfunctions.

Locate a Qualified Seller

Do you have a specific car or dealership in mind? If you do, remember that it is your responsibility to ensure vehicle prices fall with the “fair market value” and proposed interest rates rate competitive if you plan on financing through the dealer.

Fair market value (FMV) is “the price a product would sell for on the open market, assuming that both buyer and seller are knowledgeable about the asset, are behaving in their own best interests, are free of undue pressure, and are given reasonable time for completing the transaction.”

Test Drive

When you find a few vehicle options, allocate approximately 10 – 15 minutes for each test drive. Take advantage of this opportunity and ask the salesperson as many questions as possible.

• What features does this vehicle have?

• How do they work?

• What warranties does the dealership offer?

• What is the vehicle’s history (Owners, wrecks, etc.)?

When the opportunity arises, conduct a detailed car inspection. Inspect the vehicle for visual damage such as dents, scratches, rust, leaks, etc. Furthermore, remember to check under the hood, tire tread, and brake conditions.

Negotiate & Close a Deal

First-time car buyers should either involve an experienced buyer or prepare to negotiate. To help save you money long-term, negotiate trade-in values, extended warranties, services, and the final sale price. Ask a trusted family member or colleague for assistance if needed.

You might want to decline add-on fees that are considered “non-essential.’ For example, fabric and paint protection is often viewed as non-essential expenses. The cost of the product/service can be applied to the finance amount, but it will raise monthly payments.

Sign the Agreement

At the final stage of the car-buying process, the buyer will provide proof of insurance and sign the remaining paperwork to finalize the deal.

Contact a Frandsen Bank lender to explore our competitive rates and flexible terms with online access to loan information.