How To Save Money When Buying A Car

How To Save Money When Buying A Car

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Buying a car is something we look forward to for months in advance. No matter how uplifting the prospect of owning a new vehicle is, it is still important not to overpay for the vehicle purchased. You need to know what you are buying in order to get a good price and who knows, perhaps save some money in the process. After, you’ll need money for gasoline in the future.

Paying the full price

When advertised, the price a vehicle goes for, whether used or new, isn’t the only bill you will have to foot. New vehicles often come with luxuries features you pay extra and you have to get car insurance.

Then there’s the cost of registration and legal aspects of car ownership, especially if you are buying a used car. Finally, purchasing a car through a bank loan means that monthly installments will be increased because of the interest rate, which can be as high as 15%.

Getting a car loan

Speaking of loans, they can vary significantly from one bank to another. From the aforementioned interest rates to grace periods, some loans will suit you better than others. That’s why you need to compare as many financing programs as possible.

It’s useful if you can say to a banker that a rival bank offered you a better deal. Once you decide on a particular loan, check the fine print to ensure you won’t have to pay penalties if you pay off the vehicle sooner than stipulated.

Not all dealerships are the same

When shopping for a new vehicle, you will research more than one dealership, just like you did with banks. Go through their social media pages and have a closer look at their portfolio. In addition, look for dealerships that are willing to sweeten the deal with a complimentary winter tires package. Always look for amenities that upgrade the car itself and don’t make the final decision based on cheap freebies, such a key chains or fancy pens.

Lower post-purchase costs

After you sit inside your dream car, the spending spree is not over just yet. From replacing worn-out tires to washing your new four-wheeler, you will require all kinds of car service quotes that you should ideally get in one place.

Through clever connections with various service providers, you get to save money and time you would waste wandering from one automotive specialist to another. You cannot install a child seat and service your vehicle in one go.

Research the car you want to buy

Even the most avid car enthusiasts don’t know the downsides of every car model available in their country. Mechanics and laymen alike have to google the particular model that caught their eye. If you are buying a used car, then compare the prices to see if the owner has overpriced the vehicle.

When new cars are concerned, you might want to search for specs that interest you the most, such as cargo space back in the trunk or whether an LPG conversion can be done. A few hours in front of the computer browsing various automotive websites will help you save hundreds of dollars.

It’s OK to haggle

There are dealers and car owners that deem haggling as an insult to the trade. This is simply not true, as you might arrive to take a look at a car, you like it, and want to buy it on the spot but there are minor flaws that weren’t mentioned in the ad.  It’s perfectly OK to negotiate the final price in such instances, as a dent in the bodywork can bring down the final price of the car.

Do you already own a car?

Many world governments run subsidy programs that allow car owners to trade in their old vehicles for a discount or a credit when buying a new car. Ask around dealerships for such benefits, as you can save thousands of dollars by turning in your old car that might even be broken down.

Should I buy a new or a used car?

All of the tips listed above can be used both for buying a brand new car or a used one. However, the dilemma for some shoppers still remains which cars are better. New vehicles do cost more but you get a technically impeccable machine.

On the other side, the moment you drive away from the showroom, the vehicle’s value drops by 30%. Used cars are no better, as their affordable sell price is laden with hidden repair and maintenance costs.

Our advice would be to buy used cars but only ones that are under 5 years old, as you get the best of both worlds: a vehicle that won’t lose its value instantly and a mechanically solid machine that won’t break down every 10,000 kilometers.

As you have seen from our examples, there are at least 8 things you can do to save money when buying a car. You don’t have to “sacrifice” the vehicle’s quality, as these tricks will help you lower the final price you pay.

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