What a First-Time Buyer Needs to Know Before Purchasing a New Subaru

Buying your first new car can be fun. The fun part is coming to Twin Falls Subaru, looking at the cars, test-driving them, picking colors and options, and of course, driving your new car home. But just as with any big event, planning is the key to having it all work out for the best. That means having to do the boring stuff first but with each step, you will approach the process with greater knowledge and confidence.

Determine What You Can Afford

Assuming this will be a financed purchase, understanding what you can afford means determining your down payment and monthly payment. As part of figuring that out, you need to do some research on your trade-in vehicle if you have one, and financing options.

• Down payment
  The more you pay upfront, the lower your monthly payment, and the more you will be paying for the car, rather than interest. Generally, you will need to put at least 10% down, though 20% is recommended to help reduce the time spent upside down – that is owing more on the car than what it will resell for.
• Trade-in
  If you have a car to trade in, that will contribute to the down payment. For that, you will need to know the wholesale value of the car. The best way to find this out is simply to go to places that sell used cars and ask them to give you a price on your car. It takes time but after 4-5 locations, you will have a sense of what your exact car with its mileage and its condition will get you in your area. Now you will have a figure to add to your down payment.
• Monthly Payment
  You need to determine how much you can pay each month for not just the monthly car payment, but also insurance, maintenance, and repair fees that go along with owning a car. This should be after considering all other monthly expenses for food, housing, clothing, utilities, insurance, medical expenses, and savings both just for the sake of saving and for unexpected costs. 
• Financing Cost
  Part of your payment will be the interest rate for the loan. To estimate this, you should know your credit score, and ideally explore your financing options before shopping. Be sure to contact the Twin Falls Subaru financing department to arrange for financing pre approval as well. 

The result is having a sense of what your interest rate should be. With that, and a sense of what you want your loan term to be, you can look at monthly payment possibilities using our payment calculator.

Too many credit score inquiries over time can harm your credit score, but applications made within a 14- to 45-day period will only count as just one hard inquiry in your credit score. 

Determining Your Vehicle

Armed with a good sense of what you can pay, now you can begin looking for what you want to buy. For this, you want to ask yourself several questions that mostly revolve around how you plan to use the vehicle:

• How much do you expect to drive this car every week?
  This gives you a general idea of operating costs and the importance of fuel mileage ratings.
• How much will this car be used on freeways or open highways?
  If there is much freeway use, you will want a model that is comfortable and not too loud at high speeds
• How often will someone be in the back seat and will they be there for short or long trips?
  This gives you a sense of how large a vehicle you need to accommodate rear-seat passengers
• Will you use this vehicle for hauling large items?
  Informs you of how big a cargo space you need and will the things you plan on hauling fit in a trunk opening, or need an open hatch to fit.
• What features are the most important to you?
  Having in mind the features your new car must have and what you really want to have can ease the selection process.
• How much are the above answers likely to change during the time you plan to own this vehicle?

With the answers to the above on hand, you can then research models that fit online. You can research information on Subaru models on our site and then see what we have in our inventory, all at your convenience.

What to Bring When You Come to the Dealership

When heading to the dealership with the possibility of a purchase, here is a checklist of things to bring

• Valid Driver’s license
  You need to show you are a licensed driver before any kind of test drive. It will also give your date of birth and be part of your proof of residence for any financing.
• Proof of Insurance
  In Idaho as in most states, every motorist must carry liability auto insurance. Without this, you can’t drive off in your new car.
• Financing Documentation
  If you have already shopped for your financing, make sure you have everything they asked for. This should include:
  • Recent Pay stubs – Should include name and address of employer
  • Recent Utility Bills – This shows current residence status, as driver’s licenses are not always up to date.
  • Credit Score and History
  • Option: Proof of Graduation – Twin Falls Subaru has specific financing for recent college graduates. If that applies to you, be sure to provide proof of your recent college graduate status.
•  Your Trade-in
  You will want your car in the best presentable condition for its evaluation. Remember, the evaluator will be thinking about how they will sell the car. Your car will be evaluated separately while you are car shopping. If you have pre-shopped the car, you will want written proof of the highest quote you have received. We can’t always match it, but it doesn’t hurt to try.
• Form of Payment
  If you need to make a down payment, be prepared to pay it. Ideally, call our financing department to see what documentation they require. 

It sounds like much more than it is. Take it one step at a time and you will find each step rewarding before moving on. And ultimately that makes your whole buying experience more rewarding which is just what we want at Twin Falls Subaru. Because as much as we would like for you to buy your first new car from us. We would like you to buy your next one, and the one after that from us even more.