Best Advice for New Buyers

Capital One Financial Corporation has released the findings of their annual Rules of the Road survey, and has found that the advice that most parents give their children when they are looking at purchasing a car and taking on an auto loan is to do their research, then compare pricing, and shop around for the best deal at the most reputable dealership. When they asked teens what they wanted to know, they said that they wanted to hear how to do exactly that.

The survey also looked at how much people spent on their first car loan as opposed to what younger people were looking at in auto loans now. More than 73% of the older generation said that they had an original auto loan of around $5,000 or less for a brand new car. The younger generation is looking at an auto loan of at least double that.

Interestingly enough, because of the difference in prices, most car buyers paid cash for their first car, whereas the younger generation will definitely be looking at an auto loan. Less than 18% of new car buyers of the older generation remember having to get an auto loan to finance their purchase.

Capital One said that it was definitely tougher on the younger generation because there were so many financing options available to them that they will have to pick from. It definitely is not as simple as it used to be.

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