Purchasing a car can often be overwhelming, especially when you are new to the game, and don't understand the words or terminology that is being used.
It is helpful to have a resource to refer to when you don't understand a term that is being used, but many too complex to comprehend easily. The reference that I found, particularly for the first time buyers, was simplified, and was very helpful in understanding what articles, dealerships, and lenders were discussing. You can find the Glossary of Auto Financing Terms at autofinancing101 website.
There are a lot of resources on the internet to help first time buyers understand the difference between lease and loans, using a down payment, as opposed to trading in your vehicle.
Some steps you should consider:
1. Decide whether you want a used or new car. An article that may help you decide this is "New or Used: The Ups and Downs of Buying a Used Car" at ConsumerAutoDigest.com.
2. Decide how much you can pay for a car. Look at your lifestyle and budget and determine how much you can afford to spend on monthly payments (lease and loan, check out this finance calculator). Include insurance payments and maintenance in that expense.
3. Research the type of car you want, and features that are important to you. Take a look at "Buying a Used Car" for more advice.
4. Look at your financing options, whether you are considering a lease or loan, and the differences between them. You may need a co-signer that is trustworthy.
5. Look into applying for financing, online, as are able to contact many different lenders and financing institutions at once, and find a dealer in your area.
6. Once you've applied and been contacted by an authorized dealer, be sure to test drive and negotiate with the dealer. These articles provide some helpful advice; look at "Test Driving a Car" and "Negotiate for your Best Deal" for more information.
Happy Hunting!
