Teenagers, and other first time car buyers, look at the car buying process as full of excitement.  Their eyes get all sparkly when they picture themselves behind the wheel of a car all their own.  Of course, that car they've envisioned is also sparkly and probably very expensive.

Here are some things that those heading out to buy their first cars should realize.  The first is this: cars aren't an investment.  They deprecate in value from the moment you drive it off of the car lot.  Cars also have limited a life span, they won't be around forever in most cases.  So be smart about how much money you want to sink into this car.  Never take on a car loan for longer than 48 months. If you can't afford the payments at 48 months, you can't afford the car.  Experts also recommend putting down 20% on the car to purchase it.  If you don't follow this rule of thumb than you'll run into trouble down the road when you go to trade in your vehicle, possibly owing more on the car than it is actually worth.

Be aware of financing hurdles that first time car buyers will also face.  If you have no established credit that will be a hassle for you. You might have to take some time to establish your credit before you can be approved for a car loan. If you are looking for a car loan, realize that most lenders will not finance cars that over 5 years old. If you are looking at an older car your money will most likely have to come from your own savings or from benevolent family members.  Be realistic about your first car and enjoy the benefits of having your own set of wheels.