Are you trying to buy a car? If so, you’re in the right place. There are several ways to buy a car. And as you might already suspect, the options are boundless! You can either buy a used or brand-new car and even choose to browse through dealerships and online listings. You can even contact a friend or a friend of a friend who is selling their old car. There is no-one-size-fits-all in the world of car purchases, and this article is going to list some of the best ways you can save money—no matter which route you choose.
1. Do Your Research Before Making A Purchase
This is one of the best ways to save money on a new car. If you go in with specific price points and features, salespeople will know which cars are within your range and they’ll be more likely to offer discounts or freebies to get them off their lot faster. There are usually several other places that carry the same model, so it’s not hard to find one that matches your needs. And even if there are no other places carrying that exact model, asking for discounts at other dealerships might trigger competition between businesses. Either way, this tactic will help you get a better deal.
2. Buying A Used Car Is A Great Way To Save Money
The next and probably most obvious way to save money when buying a car is to purchase a used one. Used cars are cheaper because of their depreciating nature. The older and more used a car is, the cheaper it will become. And it gets better. Who says only brand-new car purchasers can get a car loan?
You can always visit sites like ticreditunion.org and get a used car loan to make your purchase even lighter. If you cannot afford the car at full price, then you can stretch your payments to monthly, more manageable prices.
3. Compare Insurance Rates
This tip is especially important if you are planning on purchasing your new vehicle from a dealership. The last thing you want to end up doing is paying more for insurance than you paid for the car itself. It can be extremely frustrating, but it’s something that happens to many first-time car buyers. Keep in mind that this will happen even if you get full coverage on your loan because the bank or lender still has the right to go after any assets that may be valuable to them. The best way around this situation? Compare insurance rates before buying a car!
4. Pay In Cash
Cash can be a great bargaining chip in convincing the dealer that you’re serious about buying. A dealer is more likely to help out when he knows there’s no waiting for payment or worrying about monthly collections. Aside from that, sellers are more inclined to give you a great discount if you’re willing to pay in cash!
5. Begin By Looking At Cars Online
You probably saw this one coming, but seriously, looking online will give you tons of information before even visiting a nearby dealership. Knowing what brands are reliable and how much they cost beforehand can greatly reduce your time going to one dealership after the other.
You can search by model type, price range, features, and even fuel efficiency. Just do a few searches and narrow your results to discount dealerships if you need to.
6. Consider The Total Cost, Not Just Monthly Payments
Dealerships will try to get your attention with low monthly payment prices, but what they might not tell you is that those prices are based on a financing plan for 72 months. That’s six years in total! If you look at how much is being paid over those six years, it’ll probably be incredibly expensive compared to paying the car off in just two or three years
7. Negotiate A Lower Price With The Dealer
The dealership is in business to make money, so you can bet they’d rather get rid of cars than keep them on their lot. If the car has been sitting there for over 60 days, they’re probably willing to lower their prices just to get it off their hands. If you want more time, just say you’ll think about it and plan your next visit after sleeping on it. Most likely, they will offer you the lowest price possible for the car!
8. Don’t Buy More Than You Need
Sometimes people will get so excited about getting a new vehicle that they’ll spend way more than what they need. But why pay extra money for features you don’t need?
Your salesperson is most likely going to upsell you by mentioning additional features that a similar model may have. They’re trained to convince you. This is an area where discipline more than anything will sail you through.
But this is why doing your research before visiting a dealership is crucial. When you go to the dealer, write down exactly what kind of features you want and how much those options cost on different cars. Once you’ve done this, take some time to think about whether those features are worth the extra money. This way, you can make sure you get exactly what you want without spending more than necessary.
9. Rent A Car
Still cannot decide on buying? Renting a car is also a great option. Leasing for two or three years will allow you to drive a new vehicle every few years without having to worry about repairs and car maintenance. There are still taxes and fees that you may be paying, but they’re usually much lower than if you were buying one outright.
This type of arrangement also keeps the car off your credit, so it won’t affect your interest rates on any home or other loans later down the line. If you don’t want to pay extra fees at the end of your lease, some dealerships offer programs where you can either turn in your lease early or buy out the remainder for an agreed-upon price.
Getting the car you’ve been dreaming of, whether new or used, can seem undoable when almost every car you get close to buying is out of your price range or lacks that one feature you need. With the tips mentioned above, you don’t have to be stuck in a dilemma and make inconvenient compromises. You just have to know how to search, shop for a car, and strike a good deal!
If you’re looking for a fast and profitable sale, you should definitely consider getting a pre-purchase car inspection. For the buyer this gives complete peace of mind over making the sale and for you as a seller, you can justify the prices you are offering. If you want to know more, click here.