How to Save Money When Buying a Car?

Category : Loans | Sub Category : Car Posted on 2021-03-29 15:39:54


How to Save Money When Buying a Car?

Whether you are interested in buying a used car, a brand-new car, or a car for your child, simply spending more than you want is not the only way out. Trying to purchase your dream car does not have to be a big hit on your debt, with the right time and resources you can get your dream car at a reasonable price. Creating a budget sheet can list exactly all the extra costs and how much you can afford.

There are dozens of resources online you can use to help find the right car for the right price, to stay in your budget. Thinking that your dream car is to far away should not be lifelong dream but a realty. Here are a couple of ways you can save money on your next car purchase.

  1. Because negotiations are always the key, do your homework. Check online for prices and locations of your car model. If one place has a better price, print it off and try to see if they will match their price.
  2. Take that pencil and paper out and narrow down the features, essentials, and luxury of what you want in your vehicle. This way you already know exactly what you are looking for and can save time trying to search around different locations. Different features can change the price of your vehicle, like navigation system. A navigation system can run you around $1000+ more on your listing, however you really do not need that feature. What the dealership does not tell you is that your navigation system will only update for x amount years so that means if new road opens up passed the last update you will be  taking the long way around. With navigation already on your phone, new cars will now how apple and android play which allows you to plug your phone up to your car and use their navigation system for free.
  3. Looking for contacts is the next thing to do when you plan to buy a car. Do you know a car salesman that  you can trust, or do you know what dealership has the best reviews contacts are everything when buying a car, going to the wrong place can really cost you more money in the end.
  4. Alternative to spending more money on a new car you could always go for a year or more younger then the new versions and save from $3k-$5k depending on the car.  If possible, look for a used car.  New Cars lose from $3k-$5k of value as soon as pull it off the lot, so you could potentially purchase a used car with only 50miles on the vehicle.
  5. If you do not have a down payment do you have a car you can trade in? Another way to get a cheaper deal is to trade in a vehicle. Dealerships are always looking for used cars because they can make a quick buck selling your car at an auction. This is a good idea because in several cases, you need a car for short-term benefits, and trading is a money-saving way.

Besides the above tips and tricks, customers need to be smart about their purchases, sometimes waiting for the seasonal discounts or promotions can save you money in the long run. Just like any other commodities in the market, vehicles also have their prices slashed. There is nothing wrong by watching and monitoring the market, keeping in touch with the news, and having contacts.

Best Time to Buy a Car Affordably

From a sales point of view, prices of cars sales go up and down. For example, New Years Days, the 1st and 2nd January, even the whole week is one of the highest-selling periods for vehicles. This is because it is a sales season, and dealers slash the prices during this part of the year. There is a lot of competition, and great benefits from buying a vehicle during these times. TrueCar, from a survey in 2016 found the US market offers on New Years Day allowed an average of 8.5% savings on new car purchases, straight off the sticker price.

Do Not Pay in Cash

One of the most common misconceptions among buyers is that paying through cash saves money. They say it is better because you do not have to pay interest. From an investment point of view as per Autotrader, cash may not be the best thing to do because customers will end up saving little. Instead, let your credit build up and save the your cash for projects, upgrades, or a down payment.

Buying Used Cars

Something which requires more caution than any others, it can turn into a big nightmare if you are not careful. For those who do not have that kind of cash, and are looking for used cars, do your research, and always go for trusted used-car dealerships. Getting your car thoroughly verified from a dealer, a garage, are all important steps that you should not ignore. If you know a mechanic take him with you when purchasing your car. Ideally you  want to purchase a used car that is no more than 5 years old. Buying a used car is the cheaper route, you just need to make sure to your research.

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