Buying a Car for your Graduate? What to Do Before Going to the Dealership

Buying a Car for your Graduate? What to Do Before Going to the Dealership

Buying a car for your high school student? Many parents look to purchase vehicles for their high-school or college-aged children either for graduation, summer jobs or sending them off to college. If you are in that position, there are a few things to do now to get ready for the major purchase of a new car.

Before you go to a dealer, do your research online first to compare vehicles and get familiar with features and prices. Edmunds and Kelley Blue Book are reputable resources for information gathering. Know the fair purchase price of the cars you are considering before you enter a dealership, so you will have the knowledge to negotiate on a price.

You also need to decide the price range you would like to stay within. Even if your child will be responsible for the payments, insurance or maintenance, consider the total price of ownership of the vehicle. Be realistic in what you can afford if your child is unable to keep up his or her end of the deal. If your name is on the vehicle, you’ll be responsible for making sure payments get made; so, be careful not to bite off more than you can chew.

You could also look into financing options. You can usually find good deals on new car financing at a dealership during manufacturer sales events. However, if you are buying a used car, contact your bank or credit union, which may be able to offer you a better interest rate than the dealership.

Finally, be sure to know your credit score and related credit information. Check your credit report and scores from each of the bureaus to know exactly where you stand in terms of credit before you visit an auto dealership. Knowing your credit will help you know what kind of financing you should be able to receive and negotiate the best rates possible.