10 tips to save money when buying a car
Whether you’ve decided to treat yourself to a new car, or you are simply investing in something to get you from A-to-B, buying a car is a big purchase. So imagine how nice it would be to save a little bit of money during the process. We put together a handy list of ways you can save money on the hunt for your new motor.
1.Do your research
The key thing to ensuring you are buying the right car for you is to do your research. And thanks to the abundance of information on the internet these days it couldn’t be easier to find the best car at the best price. There are also a number of price comparison websites and apps available that create a database of local and regional dealerships, and their offering.
If you prefer to keep things oldschool, then do your research by travelling around your local dealerships and seeing what kind of models, and price ranges, are on offer. It is growing more popular for dealerships to be transparent about their pricing in a bid to eliminate their competition, however you should still be on the ball for pushy sales representatives.
2.Don’t be afraid to negotiate
Negotiating can feel a little weird for a consumer, but when it comes to buying a new car bartering is your best friend. If you know the car you want, try your hand at negotiating with sales managers online or over the phone before heading in store and agreeing to a purchase.
If you spot your ideal car in the dealership, it's a good idea to take some time to think about the purchase and call back the next day to begin negotiations. This is the best trick to getting the perfect price. If the deals not right, don’t be afraid to walk away!
3.Keep your budget to yourself
Your financial budget is one of the key elements as to whether you can get the car you want or not. One top tip is to keep your lips tightly zipped when it comes to numbers. If you reveal your exact budget too soon a dealer might push to extend the length of the loan for a more expensive car and ultimately see you handing over way more than you would need to. Always keep your budget figures in mind, but make sure to negotiate the best APR.
Alternatively, you can chat with your lenders and figure out the best financing plan for you. Then, with the right plan in hand, you can charge into the dealership ready to make an affordable purchase.
4.Figure out the best timing to purchase your car
Did you know that there are some times of year that are actually better than others to purchase a car. While opinions differ slightly, for the most part the end of the month is cheaper to buy a car. This is because dealerships generally work on a month-to-month quote and a salesperson will be working to reach or exceed their quote by the last day of the month. That means they are likely to be more susceptible to negotiation in order to make a sale.
Other good times to buy a new car are at the end of the day before the dealership closes, when a new model is just about to be released or keep an eye out for special sales initiatives.
5.Consider purchasing a pre-owned car
A brand new, shiny car might sound nice but financially it might not be the best option. Instead consider buying the current version of the car, or the last model made, rather than shelling out for the newer version. Often many features remain the same from one model to the next, and many tweaks are minor or even just aesthetic. Consider buying a certified used car and you could save thousands,
6.Avoid unnecessary additional purchases
Chances are your salesperson is going to try and sell you all of the bells and whistles. While they might be tempting, they are a cost that won’t particularly enhance the general functionality of your car. Things like a top of the range radio or multiple power outlets might sound like a nice feature, they aren’t without a cost. If you want to save money then stick with the basic model.
7.If you can pay cash, pay cash
Paying cash isn’t necessarily an option for everyone, but if you have managed to save up the lump sum it is a great way to make sure you don’t overspend. While the cost may seem like a lot in one go, it means you don’t have the deal with the burden of interest over time.
8.Or get the best loan term
Financing a car isn’t necessarily a bad option, and is great for people who don’t have the means to pay for a new motor upfront. Car loans are fairly easy to come by and many lenders offer a number of payment plans to suit all kinds of customers. The key to making sure you save money with a loan is to secure the best interest rate and loan term possible. Don’t be afraid to try your hand at a little negotiation and always be sure to speak to more than one broker before you settle on anything.
9.Sell your old car yourself
While dealerships will offer to sell your car for you, they tend to lowball customers when it comes to trade-in value, and they will want to make a nice profit themselves. The best route is to sell your old car yourself. Although this will take time and commitment, thanks to social media and the wealth of sales websites online, it’s certainly doable.
10.Remember to factor in insurance
Buying your car isn’t the end of the spending, you also have to factor in the cost of insurance-without it you won’t be able to drive your car out of the lot. The make and model will affect how much you have to hand over each month for insurance, but there are other factors such as your age, driving history and where you live. Do some research and speak with a number of brokers to find the best deal for you.