All of us dream of owning a car someday and enjoying the perks of traveling. And some of us have been in need of a new car for quite some time.
But not all of us will have the privilege of owning a car mainly because of our budget.
And if you live from paycheck to paycheck and worry about your expenses, then you know what I’m talking about.
But whether you’re someone that needs a new car or has never owned one, there are plenty of tips on how to buy a car and save a lot of money. So give them a try an d
1. Create a List of What You’re Looking For
Before you go window shopping, prepare a list of car models and specifications. Since most auto salespeople sell you the higher value of car models and sweet-talk you into buying the add-ins, having a list helps you to avoid temptations.
So don’t get fooled by them; create a list that gives you control over what you’ll buy.
Also, think of how often you’ll use your car. If you drive long distances or off-road, diesel could be the way to go. Think of the capacity and how many people will regularly ride with you.
Then list down all the reasons why you need a car and shop according to those needs.
2. Opt for CPO
Certified pre-owned cars give you the same benefits as a new car.
Many car dealers even provide you with great freebies such as roadside assistance, warranty, and towing or rental coverage.
CPO cars are cheaper because they are pre-owned and older models. However, although these cars are older models the car dealers have fully reconditioned them. You can browse a variety of CPO vehicles at Edmunds and Cars websites.
3. Bargain Over the Internet
Did you know that you can bargain with a salesperson over the internet?
What’s great about this method is that you don’t give them the benefit of face-to-face interaction. It is easier to say “no” to someone you can’t see.
Also, internet salespeople are paid based on the volume that they sold rather than on a commission basis. This means that they have the power to cut the deal and give you the best discounts.
4. Trade in Your Old Car
If your car is in excellent condition, look for dealerships that are willing to take your old car for a newer one.
Of course, you still need to shell out some cash, but not as much as when you get a brand new car. A few hundred dollars is still a lot cheaper than a few thousand dollars.
But just make sure that you know the current market value of your car so that the dealer doesn’t lowball you on the cost.
And visit this car-buying site to get an idea of how much your car’s value is.
5. Go for Mid-Level Models
It’s tempting to buy a fully-loaded car with all the perks such as a classy-looking spoiler or an advanced navigation system.
But is it worth it and do you really need them?
Try opting for practical accessories such as Anti-Brake System, Anti-Theft System, and airbags.
Accessories such as a sound system can be added later on. And adding them later on will also give you the benefit of customizing them according to your preference and be a lot better for your budget.
6. Check Out the Dealer Stocks
Ordering from a dealer stock means selecting from what’s already been ordered. It’s cheaper because there are no additional fees to order what you want. A special order means they have to contact the manufacturer and deliver the vehicle into your hands.
Of course, there are special fees that come with it, but it’s worthy checking out!
Browse from what’s already in the shops, they may not be exactly what you want, but they are of the same value.
7. Bring Your Own Financing
Don’t forget this tip because this is probably the best way to buy a car and save good money.
Before you start shopping for a car, make sure that you’re already approved for a car loan.
This saves you from the hassle of being badgered into financing that seems “too good to be true.”
Also, scouting for a car loan beforehand allows you to scrutinize the details and make sure you’re get what you pay for. So look through the market for banks and credit unions that give you affordable financing without the unnecessary extras. You’ll have plenty of time to study the fine print once you have more of options.
And lastly, pre-approval gives you an allowance of 60 days, so you have a lot more time to spare. It also makes it easier for you to haggle with the dealer once you’ve got financing ready.
8. Negotiate Before Buying
If you’re buying a used car or trading in your car, negotiate the price first. Start with getting a good deal for your car before focusing on other factors such as a financing rate and insurance.
After getting the purchase price of the car you want, start negotiating the extras. It gives you leeway on where to put your money.
9. Get Useful Insurance
Research on insurance and find the best type according to your needs and usage.
So for example, if you live in an area where it’s prone to flash floods, you may want to opt for that comprehensive insurance. Here is a quick guide on insurance policies to help you get started.
10. Buy During the Right Time of the Year
This is one of those tips for buying a car that you don’t want to forget.
August through October is the best time to shop for a car.
This is the period where dealers change their stocks – out with the old and in with the new.
You can even buy vehicles at a discounted price. Car dealers are getting rid of their old stock, so you’ll most likely get a good deal.
So save up your money until then and think of it as an early Christmas gift to yourself.
Saving up for a car and finally getting one is the best reward for all of your hard work.
It may seem a long ways off at first, but you just need to motivate yourself and be responsible for budgeting.
They key to getting the best deal is to research, prepare the requirements, and go easy on the budget. Then you can make the best decision possible and drive out of the lot happy and with no regrets.
