Tips for first-time car buyers to have the best experience

Buying your first car can be exciting yet challenging. Car ownership usually involves choosing a car, finding a dealer, exploring your financing options and signing the paperwork. It may seem a lot to manage, but don't let it discourage you.

Planning makes the process easier and less stressful. We provide some valuable tips for first-time buyers to ensure they get the best car-buying experience.

Establishing your budget is the first important thing to consider in buying a car. It helps you narrow your options within your price range.

Using an auto calculator gives you an idea of the costs associated with owning a car. You can also get estimates for your monthly loan or lease payment by using the tools at echopark.com.

Take a realistic look at your finances, and don't spend more than you can afford. Consider your basic living costs, such as food, shelter and medical expenses.

You should set aside money for monthly payments, insurance, maintenance and repair fees that go along with owning a car.

Important Budget Considerations for First-Time Buyers

• Opt for used cars - New cars depreciate the moment you drive it off the lot. You can avoid this by buying used cars. At EchoPark, there are thousands of new-to-you makes and models to choose from, and you can ship your dream car to an EchoPark store near you for convenient pick-up.
• Get pre-approved - Having a pre-approved car loan makes it easier for you to negotiate at a dealership or with a private seller.
• Have a down payment - It's good to have a down payment, especially if you're using financing to buy a car.
• Avoid leasing - With leasing, you can't sell the car and make some money back. You also can't take advantage of its trade-in value.

Using auto industry resources makes researching car prices easier. Car dealers and auto lenders also use these guides to determine a car's value.

These online resources provide detailed information to help you choose the best car for you.

Car-Buying Guides To Use

• Edmunds - You can get prices on new or used cars and detailed expert vehicle reviews on Edmunds' website. It also offers a free value appraisal for your car.
• Kelley Blue Book - Kelley Blue Book gives you prices and values when buying and selling new or used vehicles. You can also find car reviews, ratings, and comparisons on its website.
• NADAguides (National Automobile Dealers Association) - NADAguides provides accurate information and pricing guides on different vehicles. You can also get a free dealer price quote from them.
• TrueCar - You can receive upfront prices on any new or used vehicles in your local area on TrueCar's website. Its extensive database allows you to compare various car models.

On average, a new car loses around 60% of its value after five years. New cars also typically have higher motor vehicle registration fees and higher insurance rates.

Buying a used vehicle will save you money on car registration, insurance, taxes, and depreciation.

When choosing your first car, prioritize your needs instead of your wants.

Look for a car that doesn't go over your budget and still leaves room for your other necessities. Also, consider your lifestyle and your use for the vehicle.

What You Should Focus on For Your First Vehicle

• Choose a car body type based on your needs. A sedan is a classic choice for a practical car with space for passengers. If you need more space, you can go for hatchback or crossover options. SUVs and minivans make it easy to haul a combination of people and cargo.
• Choose manual or automatic transmission. A car with manual transmission is often cheaper to buy and service. It may provide a better fuel economy than the automatic version of the same car.

Automatic is easier to drive, but you won't need to have it frequently serviced if you take good care of it.

• Think about longevity. If you want your car to last longer, you'll need to spend more to get a quality car. Cheaper cars usually require regular servicing and maintenance.
• Ask for vehicle ownership history. If you're buying a used vehicle, you should see the history of the car's ownership, any repairs, or servicing. The ownership report also includes the mileage on the odometer by the time of sale and the vehicle's accident history.

To calculate the down payment, multiply the total amount by the percentage required by the lender and minus the value of any trade-in you have.

The average down payment for used cars is about 10.9% of the price of the car.

For example, if you're purchasing a $20,000 vehicle and you need a 10% down payment, your down payment would be $2,000. If your car's trade-in value is $500, you would need to have $1,500.

You can also use an auto finance calculator to determine your down payment, depending on your loan term and interest rate.

You should generally keep your monthly payment at or below 10% of your gross monthly income. You also need to consider your expenses to determine the right budget for your car.

Another factor to consider is loan payment terms. Depending on the lender, auto loan terms generally range from 36 to 84 months.

Choosing a longer repayment term reduces your monthly payment. But over time, you could end up paying more in interest.