How to Save Money when Buying a Car
When the time comes to purchase a new car, the whole experience can be intimidating. After all, a car is big purchase and if you are not careful, you can easily overspend or get a bad deal. You don’t want to get stuck paying more than a car is worth, or getting locked into a loan that is a bad deal. You will instead want to walk into the situation well informed and ready to negotiate a great car at a great price. So put your business hat on and take a look at the top seven ways to save money when buying a car!
A car is one of the biggest investments you will make, so do it right! Take a look below at some helpful tips and tricks to guide you through the buying process. Avoid the bumps on the way that most shoppers run in to, and find out how you can come out feeling victorious!
How to Save Money when Buying a Car in Seven Easy Steps:
1. Timing is everything.
Chances are, the salespeople at your local car lot work on a quota system. Because of this, they tend to make better deals at the end of the month, especially if they are just a few sales away from reaching their quota. Hold off shopping until the last week, or last day even of the month and get a better deal.
2. Purchase a model at least one year old.
It is not wise to buy brand new since your car loses a great deal of value the minute you drive it off the lot. Instead, buy a car at least one year old and save. You will still get a like new/newer model with little wear and tear, but you will save a serious chunk of change since the model will need to be moved with the brand new models coming out.
3. Research car prices online.
There are so many wonderful sites out there with the car buyer in mind. Autotrader.com, CarsDirect.com, Edmunds.com, and TrueCar.com can all help you determine the value of a car and see if you are getting a good deal. Many of these sites are free to use and easy to navigate. Always consult with at minimum three of these before buying anything.
4. Keep your eyes peeled for rebates.
A quick visit to Edmunds.com can tell you about many rebates, cash-back programs and other incentives dealers are offering. If you have decent credit, chances are you can apply and qualify for one of these rebates and get cash back on your purchase. Why pay more and miss out on free money? Give Edmunds a peek and see what you have coming to you.
5. Talk with your insurance agent.
Talk with your insurance agent about the model you are considering. You will want to do this because they can tell you what your new insurance premium will be. You don’t want any surprises, and you don’t want to go over budget. The amount of insurance will need to be figured into your monthly cost. So give them a call and talk numbers.
6. Don’t inform the dealer right away if you are trading in.
Keep it on the hush. Instead, wait until you’ve decided on a final price before telling the salesperson you want to trade in your old car. Otherwise, it is not uncommon for the dealer to give you higher quotes on cars. Be sure to check with The Kelley Blue Book to see what the value of your trade is in, in its current condition.
7. Don’t buy extras you don’t need.
Dealers work on commission, so you may be pressured to buy ad ons like an extended warranty, road service packages, and more. Say no, and stick to it. You don’t want to be financing these ad ons in the long run. Instead, be firm and tell the seller you are not interested. These extras are very rarely worth it, especially the extended warranties which are so riddled with red tape they are hardly usable.
So, are you ready to head to the car lot yet? Remember to be firm and show the seller you mean business. Don’t allow yourself to feel uncomfortable and pressured into anything you are not interested in. If you go with a certain number in your head, stick to it. Now is not the time to stray from your budget.
By following these simple tips, you will be able to get a great deal on a new-to-you vehicle that you can depend on in the years to come. You won’t drive away feeling defeated, and you won’t walk away broke.
Make the appropriate calls and internet searches as mentioned, and you will find that you are a more empowered consumer. Empowered consumers save money, and when buying a car that should be one of your main goals! Good luck!