True Ownership - Acquiring YOUR First Car

Turning 17 was more than another birthday; it signified the beginning of my freedom. I was now the proud owner of a driver’s license, and a car to explore the world with, also known as the road to and from high school.

For most of us, this first experience with obtaining a car is harmless – we either inherit another family member’s car or pick from a wide array of used cars on lots across the country. If we’re lucky, our parents take care of the financing, the insurance, the title and registration. We get handed the keys and drive around with the windows down and the bass turned up. With any luck that first car lasts us through college graduation.

But what do you do when its time to buy your second car and the comfort of being a teenager getting your first car no longer provides the ease at which one probably obtained that car.

This became the situation I was recently facing. After a few months of hard, abrupt shifting between gears, I decided it was finally time to bring my car in to the shop to have the transmission fixed. Twenty-four hours later, and facing a $7,000 repair bill, I knew it was time to move on.

I quickly pulled my cell phone out of my pocket and began to call my parents, when I hesitated and thought, “ I am 3 states away from my parents, in my senior year of college, what could they possibly do to help?” So I made a list:

1. Have car appraised
2. Search for the next car
3. Call parents and act quickly!

After accomplishing my 3-step plan, my fathers response couldn’t have been more prescribed, “ok, take care of it,” he exclaimed. Now I was lost. Insurance. Financing. I had no idea what was involved, yet alone if I could even qualify for this on my own. So I started my list again:

1. Call multiple insurance agents and receive quotes.
2. Do serious homework on a new car, warranties, and discounts available.
3. Negotiate the trade-in value of my car, and the selling price of my new choice.
4. Talk to dealer and see if I qualify for a loan.
5. Finalize insurance options.
6. Execute!

This afternoon I drove to the car dealership, handed over the keys, signed a ton of paperwork, and walked out thirty minutes later with a “new” used car. The experience could not have been a better one to have mid-way through my senior year of college. It quickly gave me a great lesson on restraint, execution, dealing with several complicated tasks, and even appreciation of everything my parents have done for me. The entire experience left me the following realizations and advice to pass on:

1. Break down major investments into many categories, and approach each one strategically and separately.
2. Do your homework, and ask a lot of questions.
3. Be a 3.0 student if still in school – insurance companies offer major discounts.
4. Make sure you are current, and are always current with your open credit. Nothing can bring to a halt more quickly on any large investment you make, or attempt at getting a loan, than bad credit. On that point – make sure you have started building credit (or begin immediately!).

Experiences like these go miles in helping you on your way to complete independence from your parents. In the case of purchasing a car, the process also gives you your first glimpse of what purchasing a home will be like. While without question the course seems daunting, its reward in personal development is well worth it. When the next time comes for you to go about buying a car, stop for a second, breathe, understand your objectives, and charge full steam ahead at the task – you will be glad you did.