3 Ways to Save Money When Buying a Car
There’s nothing better than kicking your new car into gear and driving it off the dealership lot for the very first time. Something that could make this experience even sweeter is if you manage to secure an extremely sweet deal in terms of both the price of the car and the financing, while also going under budget. This might sound impossible but it’s actually quite doable!
A lot of people don’t invest the time to do their own research during the process of buying a new car. This is quite a shame because there are so many great money-saving tips out there. For your convenience, we’ve compiled the most effective ones in this article:
Know Which Price Is Right
Ignorant buyer’s make a salesmen’s job very easy. They can hike up the price quite significantly and as long as they appear trustworthy, certain buyers will never second guess. Nowadays being ignorant is unacceptable, because information is literally at your fingertips. All you need to do is look up a desired model for sale in order to find out what they go for in both the first and second-hand market.
It’s very easy to find out the average price the dealers in your local areas are offering a certain model for. For example, if you’re on the lookout for a Kia, all you need to do is fire up your search engine and type in ‘new Kia cars for sale’. Then look up several local listings and calculate a mean price. Once you’ve got that, you can use it to haggle with each salesman you visit.
Figure Out Which Financing Option Is Best for You
A lot of people make the mistake of lengthening their finance period as much as people. While this does make for lower payments each month, the interest is going to pile up and you’ll end up paying an inflated amount in the end. Even, if you’re able to try and pay it off sooner, you may sometimes be slapped with a large early payment penalty. Car salesmen may not be completely honest about these details and that’s why you should do your own thorough research.
If you’re looking to pay cash and not rely on auto financing, you will definitely avoid interest. However, there’s a way you could save even more money. Talk to your dealer and found out what sort of rebates you will eligible for if you finance through them. If there’s an attractive rebate, you should sign up for a short term financing period and just pay off the full amount a few days later. However, make sure that there isn’t a large early payment penalty beforehand.
Sell Your Old Car Privately
You might be enticed to just trade-in your old car to get a large discount on a new one. While this is certainly more convenient, you’re likely to get a much higher price on it if you sell it on your own. This way, you’ll be able to make an even bigger deposit for your new one.
Don’t settle for the quickest deal when you can potentially save lots of money while buying a car. These 3 tips will show you how it’s done!