Q: What credit score does a first-time car buyer need?

A: There isn’t one minimum credit score that applies to every first-time car buyer. Lenders look at several factors, which may include your credit history, income, existing debt, down payment, and the vehicle you want to finance. If you have limited credit history, that doesn’t necessarily mean you can’t qualify for financing.

Q: Can I buy a car with no credit history?

A: Yes, it may be possible to finance a vehicle without an established credit history. First-time buyers often haven’t had enough time to build extensive credit, and lenders may consider other parts of your financial situation when reviewing an application. Scholfield Honda works with multiple lenders to help customers explore available financing options.

Q: Do first-time car buyers need a co-signer?

A: Not necessarily. Some first-time buyers can qualify on their own, while others may benefit from applying with a qualified co-signer. It depends on factors such as your credit history, income, debt, down payment, and lender requirements.

Q: How much should I put down on my first car?

A: There’s no single down payment amount that’s right for every first-time buyer. A larger down payment reduces the amount you need to finance and may help lower your monthly payment, but the right amount depends on your budget, financing terms, and how much cash you want to keep available for other expenses.

Q: Can I buy my first car with no money down?

A: Zero-down financing may be available in some situations, but it depends on lender approval, credit qualifications, the vehicle, and other factors. Even if you qualify without a down payment, compare the total amount financed and monthly payment before deciding whether putting money down makes sense for you.

Q: Is it better to lease or buy your first car?

A: It depends on what you want from your first vehicle. Financing a purchase may make more sense if you want to keep the vehicle for several years and eventually own it outright. Leasing may appeal to drivers who prefer driving a newer vehicle every few years and are comfortable with mileage limits and lease requirements. Compare the costs and terms of both rather than assuming one is automatically better.

Q: Can I get a car loan if I just started my first job?

A: Possibly. Lenders may consider your income and employment history as part of the application, along with your credit profile and other financial information. A shorter employment history doesn’t automatically prevent you from applying, but requirements vary by lender.

Q: Does getting pre-qualified for a car loan hurt my credit score?

A: Not when you use Scholfield Honda’s online pre-qualification process. It uses a soft credit pull, which does not affect your credit score. A full credit application may involve a hard credit inquiry, so it’s important to understand the difference between pre-qualification and applying for financing.

Q: How can I tell what monthly car payment I can actually afford?

A: Look beyond the car payment itself. Your monthly vehicle budget should also leave room for insurance, fuel, maintenance, registration, and your other regular expenses. A payment may fit on paper but still be uncomfortable once those additional costs are included.

Q: Will financing my first car help me build credit?

A: An auto loan can become part of your credit history. Making payments as agreed may contribute positively to your payment history, while late or missed payments can negatively affect your credit. Your overall credit profile depends on multiple factors, not just your auto loan.

Q: What is the difference between getting pre-qualified and applying for an auto loan?

A: Pre-qualification gives you an early look at potential financing options based on preliminary information and, through Scholfield Honda, a soft credit pull. A full credit application provides lenders with the information needed to make an actual credit decision and may result in a hard inquiry on your credit report.

Q: Can a first-time buyer finance a used car?

A: Yes. First-time buyers aren’t limited to new vehicles. Financing may be available for new Honda vehicles, Honda Certified Pre-Owned vehicles, and other qualifying used vehicles, depending on the vehicle, lender requirements, and your financial situation.

Q: How long should I finance my first car?

A: A longer loan term can reduce the monthly payment, but it can also increase the amount of interest you pay over the life of the loan. A shorter term generally means a higher monthly payment but less time paying interest. Compare both the monthly payment and total financing cost before choosing a term.

Scholfield Honda

FIRST TIME CAR BUYER’S GUIDE and FAQs

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First-Time Car Buyer Guide

Buying your first car should be exciting. But when you’re also trying to figure out budgets, credit scores, financing, insurance, down payments, and everything else that comes with buying a car for the first time – it can get confusing pretty quickly.

This guide breaks down the first-time car buying process so you know what to expect, what to consider, and which questions to ask. Whether you’re shopping for a new Honda, a Honda Certified Pre-Owned vehicle, or another quality pre-owned vehicle, Scholfield Honda is here to help you make a decision that works for your life and your budget.

How to Buy Your First Car

You don’t need to know exactly which vehicle you want before you start shopping. A better place to begin is with three things: what you can comfortably afford, what you need your vehicle to do, and which features matter most to you.

From there, the first-time car buying process generally looks like this:

Set a realistic vehicle and ownership budget.
Check your credit and explore financing options.
Decide whether buying or leasing makes sense for you.
Compare new, Certified Pre-Owned, and used vehicles.
Research insurance costs.
Test drive the vehicles you’re seriously considering.
Review the vehicle price and financing terms before signing.
Get the keys. This is the fun part.

You can complete much of this process online or visit Scholfield Honda in Wichita when you’re ready to talk through your options in person.

Start With a Budget – Not a Car

It’s very easy to start shopping by asking, “What car do I want?” For a first-time buyer, there’s a better question: “What can I comfortably afford?”

Your monthly car payment is only part of the cost of owning a vehicle. Your budget should also leave room for:

Auto insurance
Fuel or charging costs
Routine maintenance
Registration and applicable taxes and fees
Tires and other wear items
Unexpected expenses

Think about the monthly cost of the vehicle as a whole. A payment that looks affordable on its own may feel very different once insurance, fuel, and other expenses are added.

And give yourself some breathing room. A car should make your life easier, not make you nervous every time another bill shows up.

What Kind of Vehicle Is Right for Your First Car?

Now you can get to the more interesting part.

Think about a normal week in your life. A fuel-efficient car may make sense for a long commute. A versatile crossover can add cargo space without feeling oversized. An SUV may work better if you regularly carry passengers, gear, pets, or some combination of all three. A truck may be the better fit if capability is high on your list.

Separate your priorities into must-haves and nice-to-haves. Consider:

Passenger and cargo space
Fuel economy
Safety and driver-assist technology
All-wheel drive availability
Smartphone connectivity and technology
Parking and maneuverability
Your daily commute
Weekend and recreational use

Honda gives first-time buyers plenty of options to compare, from efficient cars like the Honda Civic to versatile SUVs like the Honda HR-V and Honda CR-V. Your budget may also open the door to Honda Certified Pre-Owned vehicles and used vehicles from other manufacturers.

Should a First-Time Buyer Choose New or Pre-Owned?

There is no rule that says your first car should be new or used. Both can make sense.

Buying a New Honda

A new Honda gives you the latest available technology and features, new-vehicle warranty coverage, and the opportunity to choose from available models, trims, and colors. New vehicles may also have financing or lease offers that aren’t available on pre-owned vehicles.

Buying a Honda Certified Pre-Owned Vehicle

A Honda Certified Pre-Owned vehicle can be an appealing middle ground. You get a pre-owned Honda that must meet Honda’s certification requirements along with CPO program benefits and warranty coverage.

Buying a Used Vehicle

Shopping used can give you access to a broader range of makes, models, model years, and price points. That flexibility can be particularly useful when you’re working within a specific first-car budget.

Don’t choose based on a rule you’ve heard about what a first car is “supposed” to be. Compare the vehicles, prices, financing, mileage, condition, warranty coverage, features, and ownership costs that apply to your actual choices.

How Does First-Time Car Buyer Financing Work?

Most first-time buyers don’t pay the entire purchase price in cash. If you finance your vehicle, a lender provides the funds for the amount being financed, and you repay that amount over an agreed loan term with interest.

Several factors can affect your auto financing, including:

Vehicle price: How much the vehicle costs.
Down payment: Money you pay toward the purchase upfront.
Trade-in: The value of a vehicle you may apply toward your purchase.
Amount financed: The amount you’re borrowing.
APR: The annual percentage rate associated with the financing.
Loan term: How long you have to repay the loan.
Monthly payment: The amount due each month under the financing agreement.

Don’t judge financing by the monthly payment alone. Two loans can have similar payments but very different terms and overall costs. Look at the complete picture before deciding.

Can You Finance Your First Car With Little or No Credit History?

Having limited auto credit history doesn’t automatically mean you can’t finance a vehicle.

Lenders consider multiple factors when reviewing an application, and available terms depend on your individual credit and financial situation. Scholfield Honda works with multiple lenders, giving our finance team the ability to help first-time buyers explore available financing options.

If you’ve had some credit challenges, don’t count yourself out before you’ve looked at your options. Our finance team can help you understand what may be available based on your situation.

You can also get pre-qualified online in minutes with a soft credit pull that won’t affect your credit score.

Do You Need a Down Payment for Your First Car?

Not every first-time buyer will have the same down payment requirements. The amount can depend on factors such as the vehicle, lender, financing program, credit profile, and overall deal structure.

If you’re able to put money down, it can reduce the amount you need to finance. But don’t automatically empty your savings just to make the largest possible down payment. Consider your overall finances and the money you’ll need after you purchase the vehicle too.

If you already have a vehicle, its trade-in value may also be applied toward your purchase.

Buying vs. Leasing Your First Honda

If you’re considering a new Honda, you may have the option to buy or lease. Neither is automatically better – they work differently.

Financing a purchase means you’re making payments toward ownership. Once you’ve fulfilled the terms of the loan, you own the vehicle.

Leasing gives you use of the vehicle for an agreed period under the terms of the lease. Leases typically include mileage limits and requirements regarding vehicle condition, with options available when the lease ends.

Your expected annual mileage, budget, driving habits, and how long you like to keep a vehicle can all help determine which option makes more sense for you.

Don’t Forget About Car Insurance

This one deserves its own section because first-time buyers sometimes find the car they want before checking what it will cost to insure it.

Get an insurance quote for vehicles you’re seriously considering before you finalize your purchase. Insurance premiums can vary based on the vehicle as well as individual driver factors, so two similarly priced vehicles don’t necessarily have the same insurance cost.

If you’re financing or leasing, you’ll also need to meet applicable insurance requirements before taking your vehicle home.

Why the Test Drive Matters

Online research can tell you about horsepower, cargo volume, fuel economy, technology, and features. It cannot tell you whether you like sitting in the driver’s seat.

During your test drive, pay attention to more than how the vehicle accelerates. Check your visibility, seat comfort, control layout, parking and maneuverability, cabin noise, technology, and how easy it is to get in and out.

If you’re comparing vehicles, drive more than one. The difference may be obvious once you’re behind the wheel.

Schedule a test drive at Scholfield Honda when you’re ready to see how your favorites feel on the road.

What Should You Bring to the Dealership?

If you’re ready to buy, having the right information and documents with you can save time. What you’ll need can vary based on your transaction and financing situation, but commonly requested items may include:

A valid driver’s license
Proof of auto insurance
Proof of income or employment, when required
Proof of residence, when required
Information and documents for a trade-in, if applicable
Your preferred down payment method, if applicable

Financing requirements vary, so contact Scholfield Honda before your appointment if you’d like to confirm what you’ll need for your particular situation.

Questions Are Part of Buying Your First Car

You’re going to hear some unfamiliar terms during your first vehicle purchase. Ask what they mean.

If you don’t understand the APR, loan term, warranty coverage, lease mileage allowance, a vehicle feature, or something on a document you’re reviewing, say so. A good car-buying decision is an informed one.

There are no bonus points for nodding knowingly at an acronym you’ve never seen before.

Why First-Time Buyers Choose Scholfield Honda

Your first vehicle purchase may be new to you, but helping people buy vehicles isn’t new to us.

More Ways to Find the Right Fit: Compare new Honda vehicles, Honda Certified Pre-Owned models, and quality used vehicles – with options for different needs, priorities, and first-car budgets.
Financing Help When You Need It: First auto loan? Limited credit history? Credit challenges? Our finance team works with multiple lenders to help you understand the financing and lease options available to you.
Start With No Impact to Your Credit Score: Get pre-qualified online in minutes with a soft credit pull, so you can learn more about your options before you’re ready to make a decision.
Shop Without Rearranging Your Life: Research vehicles, value a trade, apply for financing, and complete your purchase online, handle everything in person, or combine both.
Have a Vehicle Already? It Has Value: Trade it toward your first vehicle purchase or get an offer to sell it to us – even if you don’t buy your next vehicle from Scholfield Honda.
We’re Still Here After You Get the Keys: Our service and parts teams can help you take care of your vehicle with maintenance, repairs, Genuine Honda Parts, and accessories for the miles ahead.

Still Have Questions? You’re Not the Only One.

Buying your first car comes with plenty of questions. Here are answers to some of the things first-time buyers ask us most about financing, credit, down payments, choosing a vehicle, and what to expect when it’s time to buy.

Frequently Asked Questions

A: There isn’t one minimum credit score that applies to every first-time car buyer. Lenders look at several factors, which may include your credit history, income, existing debt, down payment, and the vehicle you want to finance. If you have limited credit history, that doesn’t necessarily mean you can’t qualify for financing.
A: Yes, it may be possible to finance a vehicle without an established credit history. First-time buyers often haven’t had enough time to build extensive credit, and lenders may consider other parts of your financial situation when reviewing an application. Scholfield Honda works with multiple lenders to help customers explore available financing options.
A: Credit challenges don’t automatically mean you’re out of options. Approval and financing terms depend on your individual credit and financial situation, but working with multiple lenders can provide more opportunities to find an option that works for you.
A: Not necessarily. Some first-time buyers can qualify on their own, while others may benefit from applying with a qualified co-signer. It depends on factors such as your credit history, income, debt, down payment, and lender requirements.
A: There’s no single down payment amount that’s right for every first-time buyer. A larger down payment reduces the amount you need to finance and may help lower your monthly payment, but the right amount depends on your budget, financing terms, and how much cash you want to keep available for other expenses.
A: Zero-down financing may be available in some situations, but it depends on lender approval, credit qualifications, the vehicle, and other factors. Even if you qualify without a down payment, compare the total amount financed and monthly payment before deciding whether putting money down makes sense for you.
A: It depends on what you want from your first vehicle. Financing a purchase may make more sense if you want to keep the vehicle for several years and eventually own it outright. Leasing may appeal to drivers who prefer driving a newer vehicle every few years and are comfortable with mileage limits and lease requirements. Compare the costs and terms of both rather than assuming one is automatically better.
A: Possibly. Lenders may consider your income and employment history as part of the application, along with your credit profile and other financial information. A shorter employment history doesn’t automatically prevent you from applying, but requirements vary by lender.
A: Not when you use Scholfield Honda’s online pre-qualification process. It uses a soft credit pull, which does not affect your credit score. A full credit application may involve a hard credit inquiry, so it’s important to understand the difference between pre-qualification and applying for financing.
A: Look beyond the car payment itself. Your monthly vehicle budget should also leave room for insurance, fuel, maintenance, registration, and your other regular expenses. A payment may fit on paper but still be uncomfortable once those additional costs are included.
A: An auto loan can become part of your credit history. Making payments as agreed may contribute positively to your payment history, while late or missed payments can negatively affect your credit. Your overall credit profile depends on multiple factors, not just your auto loan.
A: Pre-qualification gives you an early look at potential financing options based on preliminary information and, through Scholfield Honda, a soft credit pull. A full credit application provides lenders with the information needed to make an actual credit decision and may result in a hard inquiry on your credit report.
A: Yes. First-time buyers aren’t limited to new vehicles. Financing may be available for new Honda vehicles, Honda Certified Pre-Owned vehicles, and other qualifying used vehicles, depending on the vehicle, lender requirements, and your financial situation.
A: A longer loan term can reduce the monthly payment, but it can also increase the amount of interest you pay over the life of the loan. A shorter term generally means a higher monthly payment but less time paying interest. Compare both the monthly payment and total financing cost before choosing a term.

Shop New

Shop Used

Get Pre-Qualified

Ready to Start Shopping for Your First Car?

You don’t have to have everything figured out before you start. Set a budget, make a list of what matters to you, check your financing options, and start comparing vehicles. The rest gets much easier from there.

Browse available vehicles online, get pre-qualified, or schedule a test drive at Scholfield Honda. You can start online and finish at the dealership, complete your purchase in person, or combine both.

Visit us in Wichita, get directions to Scholfield Honda, or call (316) 688-6400 when you’re ready to get started.

Your first car is a big milestone. Make it one you’re excited about.