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7 Tips for Buying a New Car That Will Save You Money

By Edited Nov 8, 2016 0 0

Save money on buying a new car

Who wants to save on anything they buy, particularly when such a purchase involves something as expensive as a car? To save some bucks for a new car means knowing a couple of things. Just like anything else, there are a number of ways that can help you get the car of your dream at a cheaper price.

Since buying a new car is no mean achievement for most of us, the need to look a bit deeper for slashed prices cannot be overstated. To help you cut costs, here is how to buy a new auto, with tips to show exactly to save money. 

Buying a New Car? Here's 7 Tips to Save You Money

1. Know Where to Buy… This is where the journey to save money on your new car starts. You can't claim to know how to purchase a car if you don’t know where to buy. Some outlets will offer the same car at varying prices. For instance, the price that the manufacturer will sell you a car will be different from that of the dealer. Try as much as you can to eliminate middlemen because the more there are, the higher the price.

In the spirit of knowing where to shop, you need to know when the best time to buy is. For instance, you are more likely to save money if you purchase a car in December as we head into the holidays than any other time of the year. Be on the lookout for offers as well.

2. Compare Quotes… One of the biggest oversights that individuals make when they want to buy a new car is not having a clue about the average market price for the car they want to buy. Consequently, they end up buying a car at the first price they are given. As mentioned earlier on, the same vehicle will go at different prices depending on where you buy. Some dealers will sell it expensively while other will be cheaper.

A new automobile is a significant investment, and it won’t hurt going around getting quotes before you make a purchase. Get as many quotes as you can and make a comparison. You will be surprised at the difference between the highest and the lowest price. Of course, it goes without saying that you will settle at the cheapest price.

New car financing
3. Have a Finance Plan… Having a financing plan is important when buying a new car. The fact that you don’t have the entire amount of cash doesn’t mean you can’t purchase a car. Consider dealer financing as a way of funding your new car. You need to beware of one thing though. Just like the price, the rates of financing will differ from one dealer to the other. You need to ask for the figures as you shop around for the car. Pay particular attention to the interest rate.

You need to look for a financing contract that has the lowest interest rate. One of the best ways to save money on the funding plan is to walk into a bank and as for one. In most cases, it is lower than that of dealers and challenge the dealer to give you an even better rate.

4. Establish the Value of Your Current Car… Some people want to sell off their existing cars before buying a new one. Most of the times, they do this in haste and end up getting a raw deal. You need to know what the value of your current car is it makes selling it easy. If you want to offload it fast, you may as well go for a trade-in option if the dealer allows it.

Keep in mind that the dealer is in the business of making money so the probability of giving your car a lesser value exists. Take the car for valuation before trading in the car. That way you will be in a position to get the current value of your car.

5. Have Negotiating Skills… You need to hone your negotiating skills if you are going to end up with the cheapest new car. The fact that the car is going for a particular price doesn’t mean the price is fixed. Negotiating will save you some money that can be used to buy accessories for the car. Usually, the salesman will let you negotiate and give you the nearest price to the marked price. Go beyond “this is the lowest we can go” mark to get the lowest price possible.

Also, you need to know when not to negotiate. Sometimes you may find a car is selling cheaply when you put what it has to offer for consideration. For instance, when a manufacturer makes an offer, you know they are going to give what you would not get in many dealerships.

6. Avoid Unnecessary Fees… New car prices will most of the time cover the car’s value, tax, and registration fees. Don’t give into pressure from the dealers to pay for a price that includes other add-on's such as life insurance. The truth is the dealer will throw in a few bucks to cover the cost of applying the insurance on your behalf. They may also get subsided insurance rates and charge you a higher rate. Get an insurance quote from your company because you can get reduced rates as well if you negotiate with them.

7. Read the Fine Prints in the Financing Contract… Financing is welcomed whether you want to buy new or a used car. However, you need be aware of the intricate details of the contract. Read word by word and when you come across a clause you cannot understand, seek an explanation. This will save you unnecessary inconveniences in the future when you go against what the contract stipulates. Try to know what terms like 0 financing on new cars mean. Know about the “hidden costs” that eventually make the plan expensive.

The process of buying a new car can be hectic if you consider what is involved from the first time you spot the vehicle up to when the car becomes yours. Know what to do so and which areas to save your money on. After all, you want the best possible deal, don’t you?

 

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