Never Bought a Car (Any info would be great!)

[PoorCollegeKid]

So I am planning on buying a 2011 2LT CGM Automatic with IO Interior but since I have never bought a new car (or any car for that matter) on my own I need a few things clarified for my own sake. So here goes:

1. What all do I need to make sure I have lined up before purchasing a car? (Insurance, loan/down payment, etc.)

I'm afraid that I will run into some hidden costs that I didn't even think about down the road. I will have emergency money saved up, but I am being extra careful.

2. I understand I need to have full coverage on a new car that I am making payments on, so what is typically considered "full coverage?"

I have looked this up, but I can't seem to get a good answer.

3. Is the down payment paid prior to ordering the car through a dealer or after the car has arrived?

If the down payment is after the car arrives then I can save even more for my down payment. If I have to pay it before the vehicle is ordered, then I will just save up more money for insurance and other things.

4. When can I expect my first payment to be?

I have heard that this is at the end of the first month after I receive the vehicle. I am unsure how accurate this is though.

If you have any other information that I might need to know or have overlooked please feel free to respond. I am just trying to cover all the angles before I make this purchase. Thank you for your help in advance!

----Brandon

[Big Brunsy]

Originally Posted by PoorCollegeKid

1. What all do I need to make sure I have lined up before purchasing a car? (Insurance, loan/down payment, etc.)

I'm afraid that I will run into some hidden costs that I didn't even think about down the road. I will have emergency money saved up, but I am being extra careful.

All good things to have lined up before making a purchase. It's normally better to get a loan through your bank/credit union rather than going thru the dealer. Most dealerships now days have a "doc. fee" ($100-$150)

2. I understand I need to have full coverage on a new car that I am making payments on, so what is typically considered "full coverage?"

I have looked this up, but I can't seem to get a good answer.

full coverage would be comp. and collision insurance on top of the liability that is required by law.

3. Is the down payment paid prior to ordering the car through a dealer or after the car has arrived?

If the down payment is after the car arrives then I can save even more for my down payment. If I have to pay it before the vehicle is ordered, then I will just save up more money for insurance and other things.

I've never ordered a car before but I'm fairly sure you agree on the price, and then you pay for it when it comes in.

4. When can I expect my first payment to be?

I have heard that this is at the end of the first month after I receive the vehicle. I am unsure how accurate this is though.

Yes, one month from the day you pay for the car.

[Sir Nuke]

Bib Brunsy gave you the correct answers to your questions......but to add #3 - I have bought and ordered a lot of new cars.....you give the dealers your downpayment when your car comes in and its at your dealer, which is when you do all the paperwork and take possesion of your new car.

[PoorCollegeKid]

Thanks for the responses. One other question: When do I need to have my insurance arranged? Before going to the dealership to order or before I give them my down payment and do all the paperwork? I'm assuming it's the latter.

[BigRigMike]

Originally Posted by PoorCollegeKid

Thanks for the responses. One other question: When do I need to have my insurance arranged? Before going to the dealership to order or before I give them my down payment and do all the paperwork? I'm assuming it's the latter.

You do not need to have insurance lined up when ordering your car. I ordered my Fusion and when I was told the VIN I called my insurance to get my quote and so they would have the number in their system. The dealership actually called my insurance to switch cars since i was trading in.

[Sir Nuke]

if you currently have insurance.....in MOST states, you have anywhere from a week to one month to get it changed over to your new car.....I personally take no chance and go to my insurance agent the day after I have the car in my possesion.