Buying a new car is an exciting investment to make, but it’s also a pretty expensive one, especially if you’re looking for a 4×4. If you’re ready to upgrade your vehicle, but need to beconservative with your budget, follow these tips to save money on your new car.
Do your research
This first tip is probably the most important part of the car buying process. Doing your research is super important to help you make the best purchasing decision you can. Talk to friends and scope the internet to help you find a dealership that offers great deals. Read reviews on the specific make and model that you’re considering so you get a good sense of what drivers like and dislike about the vehicle to help you better compare your options.
When you’re shopping on the dealership’s lot, it’s easy to get distracted by shiny features, high-tech additions, and customizable trims. But if you’re working on a budget, you’ll have to be realistic about which features fit into your plan.
Start by making a list of your needs, wants, and nice-to-haves so that you can stay focused on exactly what you want, despite any distractions from the dealer. Keep in mind things like audio and tires can be upgraded, so you shouldn’t base your decision on these features that might cost you more at the dealership.
Get a great loan rate
Months before shopping for a new car, you should be thinking about how you’re going to make the purchase—not just evaluating your savings account and budget. You will likely need to get an auto loan to buy a car. But as you probably know, loan money doesn’t come free—which can make your big purchase an even more serious financial commitment. In order to get the best loan rate, you’ll want to make sure your credit score and financial health is in tip-top shape before applying for a loan.
Whether you get a loan at the dealership or from a local bank, make sure that you can afford your loan payments before signing any agreement. Failing to make your payments could incur penalty fees on your account, and damage your credit score.
Pay in cash
Want to avoid extra loan fees and associated costs? Buying your vehicle with cash can save you money on your purchase. If you’re able to make your purchase in cash without compromising your living expenses and budget, do it!
Consider buying used
That new car smell is pretty irresistible—but you don’t have to purchase brand new to find a reliable automobile. Cars lose 20% of their value the moment they’re driven off of the lot, which is why so many buyers opt for used models.
Trade in your old vehicle
Upgrading a vehicle that’s still in great shape? Cash in on the value of your vehicle by trading it into your local dealership. Before you head onto the car lot, make sure to do some research on the value of your vehicle on your own. This will give you some peace of mind and confidence as you work with sales representatives at the dealership.
Like most purchases, it’s important to shop around when you’re on the hunt for a new car. Visit a few dealerships in your area and check with online dealers to see where you can find the best option for your budget.
Practice your negotiating skills
While it may seem like an uncomfortable thing to do at first, you should always negotiate the price of a car. If you notice any minor flaws like a paint scratch, make sure to call those out and use them to your advantage. Most of the time, you can work your way down a few hundred dollars! But if you are going to negotiate the price of a vehicle, be sure to follow these tactics to ensure you’re being respectful and getting the best deal you can.
- Keep emotion out of the transaction
- Try negotiating over email
- Get car inspected by a mechanic
- Visit the dealership on rainy or slow days
Buying a new car is a big investment! Follow these savings tips to make the most of your budget and drive off of the dealership lot in the car of your dreams.