Buying a car for the first time is exciting. Between the freedom of motion and the gravity of purchasing what is likely your largest asset, it’s a rite of passage—and often a great deal of fun.

It is also intimidating. Choosing a vehicle, negotiating a sales price and navigating the loan process is all new, and the learning curve is steep. That can be especially true when buying a used car.

As you embark on your journey as a first-time car buyer, here are several common mistakes to avoid during the buying process:

Failing to do proper research

Buying a car isn’t always as simple as finding a car you like, going to the dealership and making a purchase. It’s a process. It’s important to do research to ensure you’re making an investment that aligns with your needs and budget.

Browsing dealership websites and reading online reviews on sites such as Kelley Blue Book or Consumer Reports can provide valuable insight into the features and benefits that various models have to offer. It can also get you up to speed on pricing. Taking the time to then understand the different types of used car options and how auto financing works will round out your understanding.

Falling in love too quickly

Everyone has a dream car. But before you look at the little red sports car, the big green truck or the techy electric vehicle, consider your needs and budget carefully. Your first car should be practical; a vehicle that is safe, economical, within your budget and reliable.

Consider how you will actually use the car and what you truly need. If you commute to an office or to school every day where parking is a challenge, a compact, fuel-efficient car may be a better choice than a large SUV. Make decisions based on your needs, rather than trying to buy your dream car, and you’ll avoid one of the common mistakes that afflict first-time buyers when they look at the used market.

Thinking short-term

Another important question is how your life might change in the next few years. With cars capable of operating for 200,000 miles or more, Americans are keeping them longer. One study by The Zebra, a company that helps consumers compare insurance policies, found that Americans have been driving their longest-kept cars for about eight years.

That being the case, it pays to look at what your future needs might be. If you are in college and will soon be in the workforce, are you likely to have a commute? If you are newly married, do you plan to start a family? If you are buying a home, will it be in a rural area on several acres? The answers can tell you something about the type of car you will need in the years ahead—and that can impact how you look for used cars right now.

Shopping without a budget

To ensure you don’t spend beyond your means, it’s important to know what you can afford before visiting a car dealership. Evaluating monthly expenses such as mortgage or rent, utilities, student loans, internet service and other costs can help you determine how much of your budget can be allocated toward a down payment and monthly car expenses, such as car financing, car insurance, and maintenance.

If you arrive at a dealership without a budget, you risk looking at cars that you cannot comfortably afford. By knowing your budget and how much you could spend, you frame the conversation to focus on realistic and budget-friendly options.

Not shopping for the right dealership

Buying a car from the first car dealership you spot in the neighborhood is a common mistake, because that dealership may not be the best choice available to you. You want to be sure that the car dealerships you’re visiting offer vehicles and financing options that fit your needs and budget.

When you are doing online research, look at several dealership options. Make sure you visit facilities that have the cars you want to see, in the price range you can afford, and that they offer the warranty and maintenance options that interest you. Credit Acceptance has a nationwide network of thousands of car dealerships that can help you get pre-qualified for financing.

Failing to understand the used car market

There are benefits that come with buying a used car—including lower costs—and you can find plenty of quality used cars at reasonable prices. But you should understand the used car market.

For example, some cars are designated as “certified pre-owned vehicles,” either by the factory or by a dealership. These cars are often subject to more intense inspections and come with some form of warranty. Accordingly, they can also be more expensive, costing more than some used cars but less than a new vehicle. When you go shopping for used cars, be sure to understand what you are examining, what type of warranty it carries and how it is priced.

Failing to understand auto financing terms

As a first-time car buyer, it’s important that you have a good understanding of how car loans work. Read up in advance. There is plenty of information available online. For example, Credit Acceptance has a full library of resources for financial education, as well as tools such as our Monthly Payment Calculator. As you read, pay attention to auto financing terms, so that you understand what the dealership and the lender are offering.

Of course, be sure to carefully review all of the paperwork involved in a purchase and don’t be afraid to ask questions before you sign. If you’re a first-time car buyer, you can start exploring financing options even before you choose your car. Get prequalified through Credit Acceptance today to get started.

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