What's happened
As searches for 'new cars for new drivers' rise by 26%, experts offer essential tips for first-time car buyers. Key advice includes understanding total costs, considering depreciation, and avoiding long finance terms. With Memorial Day sales approaching, buyers should strategize to secure the best deals amidst potential price hikes due to tariffs.
What's behind the headline?
Key Considerations for First-Time Buyers
- Total Cost Awareness: Buyers should not only focus on the sticker price but also factor in running costs such as fuel, insurance, and maintenance.
- Depreciation Insight: Understanding how different models depreciate can help buyers make informed decisions, especially if they plan to resell in the future.
- Finance Terms: Opting for shorter finance terms can save money in the long run, despite the temptation of lower monthly payments.
- Patience in Shopping: Taking time to compare options and asking questions can prevent hasty decisions that lead to overspending.
- Utilizing Incentives: Buyers should look for manufacturer incentives that can provide financial benefits, such as cashback offers or trade-in bonuses.
What the papers say
According to The Scotsman, experts from Vertu emphasize the importance of understanding total costs beyond the sticker price, advising buyers to create a comprehensive budget. They also highlight the significance of depreciation, noting that vehicles from trusted brands tend to hold their value better. Meanwhile, The Independent and AP News discuss the impact of tariffs on vehicle pricing, suggesting that buyers prioritize U.S.-assembled vehicles to avoid additional costs. They recommend seeking pre-tariff inventory to secure better deals this Memorial Day weekend, as many dealerships still have stock unaffected by recent price changes.
How we got here
Recent trends show a significant increase in interest among first-time car buyers, prompting experts to share guidance on avoiding common financial pitfalls. This comes as tariffs on offshore-built vehicles create uncertainty in the market.
Go deeper
- What are the best cars for new drivers?
- How can I find the best financing options?
- What should I know about car depreciation?
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