This post is sponsored by Everywhere Agency; however, all thoughts and opinions expressed as well our congrats for parents of grads are my own.
Graduates are about to start their engines on a new chapter of their lives. Definitely, these are exciting times and the possibilities are endless! If you ask the grads in our lives, they are ready to go places and take on the world. To help them get there, we have a Parents’ Cheat Sheet: Tips For Graduates Buying Their First Car. This is more of a cheat sheet for parents because as your baby AHEM, now a college grad, take full control of their lives, and joins the workforce, you won’t want to miss out sharing the adventure of their first major purchase!
Tips for Graduates on Buying Their First Car
Remember when you bought your first car? Yes, it is an unforgettable experience, and we want to keep our kids away from a lemon so they can truly cherish this big step. So here is your cheat sheet to be prepared to support your college grad when they go car shopping for their first car:
- Budget: The car’s price tag is important, and so are the new expenses graduates might be incurring or about to take on if supporting themselves is a new concept. All new and near future expenses should be considered as well as any student loan costs.
- Costs: As a good financial rule of thumb, car related expenses should be 20% or less of a graduate’s net income. Sporty cars usually mean increased insurance premiums. Insurance, type of gas recommended, maintenance, repairs, everything should be included in the budget.
- The Perfect Car: This can be a daunting task with so many amazing models and features to choose from. Be informed, research, investigate. Take advantage of the Autotrader “Great Cars for Recent College Grads” list. Most likely this list will help narrow down the cars to the right choice.
- Can’t afford new? Buy used!: While the smell of a new car is like no other, a year or two older model car might bring all the bells and whistles in the wish list without the depreciation; hence saving some money from the start.
- Test Drive: You must test drive. Take that prospect car for a spin! Make sure wants and needs are covered and pay attention to details
- Financing: probably your graduate’s credit score is limited and might need a co-signer to get the car. Alternatively, there are manufacturers and dealers out there that offer special discounts to recent college graduates.
- We saved the most important tips for parents for last. Your advice and support is invaluable but remember it is their purchase and their car. Let them find the perfect mix of functionality and style that suits them and their wallet.
I am sure you are beaming with pride at the accomplishments of your son or daughter and are as excited about their future as they are. Congratulations parents! Now get in that just purchased car and celebrate some more with your college graduate!
How will you celebrate?