What I Learned Buying My 1st Car

I purchased my first car in college. I needed something better on gas since I'd been sporting the family van (some of the most embarrassing times in my life). Maintaining income was of the utmost importance to me, so I commuted back home to work. Eventually, I got a job on campus as well, but I still commuted back home to teach and play music. My commute was at least 100 miles round trip to go home. That van had to go.

Here's where my decisions went awry.

The car I purchased is slightly sporty and had a price tag of 14k. There's a couple of things I did wrong:

The price tag for my car was not in my budget.

I paid too much for a used vehicle with 100k miles on it.

I paid for bumper-to-bumper insurance (what a waste).

I didn't do enough research before going into dealerships.

My car payment was $245/month, but with my credit, I could've achieved a lower rate.

Bumper-to-bumper insurance is actually a warranty purchased from the car manufacturer and not a form of auto insurance. Bumper-to-bumper coverage usually pays for mechanical or equipment breakdowns, defects or issues with certain car parts, and labor costs. - Wallethub

But, here's the thing, if I had to do it again, I would buy the same car. However, I wouldn't have purchased bumper-to-bumper insurance, and I would've negotiated more.

With more experience comes more wisdom.

The more cars you buy or car purchases you attend (or learn about second-hand), the more intelligence you gain. Between my partner getting cars almost every two years and watching friends and family get cars, I can no longer get gypped. In fact, I negotiate for other people's car purchases now.

Back in the day, I used to feel anxiety, fear, and zero confidence whenever walking into a dealership. I know what I'm doing now. Sometimes it takes real experience to walk confidently into a dealership, but I've also completed extensive research. At the end of the day, I hold the power in my hands when I go into a dealership; it should never work the other way around.

I paid off my car in 3 years instead of 6.

I knew I didn't want to have this car payment looming over my head for 6 years, so when I could, I made extra payments. At the time, it was my only debt aside from student loans. Outside motivation kicked in, though; I knew I overpaid for my car, and I desired to erase my mistake by paying the car off early to eliminate paying even more for an overpriced car.

My final payment was to the car after receiving my first paycheck from my first corporate full-time job. I was proud, I managed to pay off my car in half the pre-determined timeline, and didn't even hold a full-time job for 99% of the time I owned it. It was a priority to get that sucker paid off after receiving my first full-time paycheck. One of the best feelings in the world was getting the car title. Donezo!

I got lucky. My first car is my current car.

Thankfully, my car has lasted through the years without much issue - sitting on 200k mileage. I'm still driving it today. Forever grateful I am. Eventually, I plan to get a new car; I've already started looking, but I'm in no rush.

When buying a car, always ask yourself four questions:

How long will this car last?

How much will I need to spend on recurring maintenance?

Can I afford the mpg (miles per gallon)?

People forget to ask this question when buying a car. Always know what the miles per gallon on your car is and how big the tank is. Make sure you can afford to fill up the gas tank regularly if you drive often. If not, skip.

Does this car make sense for my current stage of life?

Maybe you have kids or 7 dogs like me. Does the two-door still make sense? Maybe it does; maybe it doesn't.

A few things I will ensure before buying my next car:

• Negotiate.
• Have a price and rate already in mind based on thorough research.
• Maintain a positive net worth after the purchase.
• Be able to buy the car with cash - even if I decide to take out a car loan.
• If I don't pay all cash for the car, get a crazy stupid low-interest-rate through a credit union, and pay off the car in half the duration of the initial car loan (as I did with my first car).

Follow the 1/10 rule: spend no more than 1/10th of my gross annual income on the purchase price of a car. The car can be new or old. It doesn't matter so long as the car costs 10% of my annual gross income or less.

More Car Stuff…

1. To Buy Or Not Buy A Luxury Vehicle
2. People Keep Telling Me To Buy A New Car
3. The Wretched Truth: You Can't Afford Your Car
4. I'm Still Driving The 1st Car I Bought 10 Years Ago

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This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any major financial decisions.