How to Buy Your First Car as a Couple
Buying a car is a big financial decision. Buying a car as a couple can be a big step in your relationship. The key to making the process as easy as possible is to plan out your purchase. Communicate with each other, find the right car that fits your lifestyle and clearly define ownership rules.
Communicate to find the right vehicle
Men and women are equal, but far from being the same. The odds are you and your significant other will want different features in your car. If you want to avoid unnecessary arguments about your big purchase always remember to communicate - over communicate if you have to.
When it comes to cars, the first thing on a man's mind is usually the hard specs, at least it is for me. This includes things like horsepower, gas mileage, and transmission capacity. Women tend to be more abstract. They want to know how many passengers can fit in the car, how easily it can fit into a parking space and of course, its visual appeal.
Make a list of the features you each want such as the colour, interior fabric, satellite radio, GPS and parking assistance or rear view camera.
Then each of you can pick two features that you absolutely cannot live without and find a happy middle ground. Limiting your add ons and extra features will also limit the cost and make your car more affordable.
Figure out how much you can afford
When purchasing a car on your own the budget plays a big factor in deciding which car to buy, the same thing is true when buying as a couple. While splitting costs with someone might feel like you're buying power has increased, it's no excuse for splurging on an expensive ride just because you can afford it.
Consider buying a lightly used or year-old model instead of the latest car on the market. Pricing usually goes way down around this time of year when the old models are being phased out and the shiny new ones are about to be released.
Remember to factor in the cost of car insurance into your monthly budget along with the loan payment and other regular costs such as vehicle registration fees, parking expenses and the cost of gas.
Shop around and get a free car insurance quote in order to find the best car insurance rates. This will give you an idea of what your insurance premiums will be so you can factor the cost into your monthly budget.
Sign a clear ownership agreement
It would be nice if couples stayed together forever or at the very least stayed friendly during breakups, but unfortunately things don't always work out that way. When it comes to money it's extremely important to have documents outlining the terms of ownership, just in case you split up and need to figure out what to do with the vehicle.
Keep in mind there is more than one way to approach ownership:
Sole ownership - Legally, the vehicle will belong to only one partner, however the other partner can agree to pay all or part of any of the costs to the registered owner and can be included as an additional driver on the insurance policy.
Joint Ownership - When you register the vehicle it will be in both names, but the specifics of the joint ownership can vary depending on what you and your partner prefer. Most people opt to take out a joint car loan, which let's both of you maintain equal rights to the vehicle as well as equal financial responsibility.
What was the first car you ever purchased?