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Tuesday, May 4, 2021

How To Save Money When Buying A Car

With all this talk about road trips, you might be thinking about getting a better car that's road-trip ready. The pandemic had lots of rental companies selling off much of their fleets in order to make it through the tough times. Now that travel is bouncing back, those few cars left are in high demand and with high demand comes high price tags. We've seen some rentals as high as $300 a day. So, maybe you were thinking about getting a new car, or at least an upgrade, that can handle more long-haul trips.

Image by Jay Lamping from Pixabay


Buying a car is not a cheap purchase. Whether you are looking at new or old models, they often still cost a few thousand, and that’s without the insurance and tax costs. If you are looking to purchase a car but would like to save some money, it is possible. Here’s how.

Consider a common make and model

Common makes and models are often cheaper to purchase second-hand, plus they are often more affordable to repair if anything were to go wrong. 


If you are considering what repairs may need to be done for your car, new or used, then you can click here to discover more. Certain makes and models will cost more to repair, so buying a common car may be your best bet as it is likely that parts and repairs will be cheaper. 


Avoid buying a new car

Whether you like to buy a car that is suitable for a good old fashioned road trip or one for quick trips to the office and back, buying a used car will save you money. Although new cars are desirable, they will always cost more money. As soon as a car is driven out of the showroom, its value depreciates and is no longer worth what you purchased it for. 


If you do desire a fairly new car, then you are better off buying one that is pre-owned. You can find cars that are only a year old, in like-new condition, with very low mileage for considerably a lot less than the first sale price. 


Do your homework

It can be exciting to go and look at cars in person but you may get over-excited and pay more than what you need to. Doing some homework will provide you with the knowledge you need to find out the best prices for certain makes and models. If you are buying a used car, you may find that buying one with more miles means the price is lower. A few more miles on the clock may not hinder the car’s performance or longevity to a large extent. If you want to save some money and get the best deal, doing some research will help you understand what price is good. 


Pay in full

Paying for a car in full can seem like a huge commitment, but paying monthly installments will incur interest. Taking out a loan for a car, new or used, is a popular choice nowadays. Yet, over the years you will end up paying much more than you would if you were to pay for the car in full. 


It may be worth holding off from purchasing the car for a while if you do not have the money. Waiting a year or two means you can save the amount you will need and avoid paying interest.


Compare prices

The car you are looking at buying may be sold in several local dealerships. It is recommended to look around before committing to the car from a certain seller. A dealership online or a few miles down the road may save you some money. 


Negotiate

Alongside shopping around for the best deal, there is no harm in negotiating on the price. You never know how much money you could knock off the price. If the car is pre-owned as has minor flaws, then you are more than in your right to ask for a discount. Don’t be afraid to ask for a cheaper price whether you are in a dealership or purchasing from a private seller, they might consider your comments and offer you a few hundred dollars off. 


Trade-in your old car

For those looking to upgrade their car, you may be able to trade in your current car for dealership credit. This may not reduce the sale price of the car you want to purchase, but it will significantly reduce the price you will have to pay. 


You can often get more money selling your current car privately, but it will be more timely. If you are ready to purchase a new car immediately and have an old car to trade in, then you can save yourself some money by offering it to the dealership or private seller you are looking to buy from. 


Take it for a test drive

A test drive might be the make or break of a car sale. The car might look impressive but not perform in the way you expected it to. If you still like the car after a test drive but noticed a few issues, these should be reported back to the seller. 


If you are still interested after the test drive but would like them to reduce the price due to a minor issue that occurred during the test drive, then they might do so. You never know what discount you can get if you don’t ask. 


Buy just before the new model year

It is common for dealerships to reduce the price of a car just before the new model year. Thus, buying in late summer (around August) or in January could save you quite a bit of money. 

Dealerships reduce the price of cars when they need to hit their yearly sales quota. If they have cars remaining and need them sold, they are more likely to lower the price. If the prices are not lowered when you go to look but you know the new model year is approaching, there is no harm in asking for a lower price. Shopping before the new model year and asking for money off will most likely result in the best deal and most money-saving. 

Or, you could shop after the model year has happened, and prices may be reduced or cars might be put on sale that they know will be difficult to sell due to the newer models.


Utilize these tips if you are looking to purchase a car and want to save money. You never know how much you could save by negotiating, doing your research, or purchasing at a certain time of the year.

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