New car owner? Keep these tips in mind when buying your first car

A new purchase is always exciting, especially when it's something as important as your first car. You might be a teenager, a young adult, or an adult who recently got their driver's license in Canada. Either way, you have a big decision ahead of you.

As a new car owner, there are probably two main things you'll want to keep in mind when buying your first new (or used) car. Money is probably the first asset. Second comes safety. You'll want to get behind the wheel as painlessly as possible, which may mean taking the time and effort to shop around and choose a car that best suits your needs. Here are some tips for your journey.

Consider affordability

Depending on your situation, your budget can be one of the biggest constraints when buying a new vehicle. If you're a teenager, you're probably working with a parent to establish a reasonable budget – and this might limit your options to older models or used vehicles. That's okay! You still have a range of choices, and a used car can be a good option. The money you have available for your down payment and the money you'll have available for your loan payments may narrow down your options.

When it comes to what you can afford, think about what you'll be paying for. Will you be using this car solely for personal enjoyment or for commuting to work? Or is it a vehicle you'll be using throughout college, university, and beyond? If the latter, you might want to set aside more money for a newer, more reliable vehicle. On the other hand, if this car will only be used for occasional short trips, a used or older vehicle may suffice.

Buying a vehicle that's a few years old isn't a bad option, as it will be less expensive and may still have many of the modern safety features you're looking for. If you're young and/or inexperienced, you might have difficulty buying through a lender, as they tend to look for older people with a relatively decent credit score and a consistent employment history. If this is your situation, you might need a relative to co-sign or even buy the car for you.

Take your time

Buying a car isn't an impulse purchase. When considering a vehicle, you might want to take your time to look around and evaluate your options, and perhaps ask for help from a friend or relative who may have more experience buying a car than you. Focus on your needs, how best to minimize costs, and practical decisions, such as how long you'll need your car and why.

However, you might be considering buying a car that will last for several years and will be driven several times a week, for school and/or work. A new car might be a better option. It seems more expensive, but it has its advantages. New cars—with the exception of sports or luxury models—such as SUVs and minivans often have higher safety ratings than older models thanks to improved technology, offer better performance, and are much more reliable.

Don't forget that your insurance costs will also be a factor in your expenses, and car insurance can be more expensive if you're a young or less experienced driver. Many insurance companies will raise rates for vehicles with more powerful or sportier engines, or those with a higher risk of theft. As a young driver, your rates may already be significantly higher – you don't want to make them any worse. (You can always speak to an insurance broker at Panda7 to find out how to reduce your car insurance costs as a young or new driver!)

If you're applying for a car loan, your bank will likely require you to have comprehensive insurance. You can request a car insurance quote from a broker at Panda7 to see how much your insurance will cost—and you can speak with a professional at any time to find ways to lower your rates as much as possible.

Final thoughts

There are many things to consider when buying a new or used car. It can be an overwhelming process, but hopefully, in the end, you'll have a vehicle that meets your needs and fits your budget. Good luck finding your dream car!