The purchase of an automobile is a major financial decision. It should never be taken lightly. This is why underneath the excitement of shopping for a new vehicle there should be a nice layer of logic. Remember, buying your dream car is a privilege. Many motorists you see chugging down the freeway in a shiny new sports car worked hard to acquire it.
They also probably have a more practical secondary vehicle at home for the everyday. Budget and practicality are the most important facets of buying a vehicle. So if you are researching for a new auto to take you where you need to go, here are six ideal tips that can help you gain that car in a cheaper fashion.
The first step you can take in the right direction when buying a car is also the simplest. Just make sure you do your homework. An informed buyer is dangerous for auto dealerships. They know what they want and they have taken time to research various aspects. So make sure you are informed before hitting up a lot.
First, look into the car you are thinking of buying. Look at its gas mileage, reliability, general insurance rates, and blue book value. This can help you avoid non-practical autos, cars that do not fit your needs, and lemons. It can also prevent you from being taken advantage of by dealerships. Knowing the market value is a great negotiating chip.
Negotiation is a vital part of buying a car. Remember, a car salesman makes money off of sales. So they will always be willing to accommodate you to a certain degree. Even a simple negotiation can save you hundreds. For instance, if you know the market value the auto you are looking at that is a few hundred right there. You can also look at cosmetics. Even the smallest blemish can be utilized to knock down the original price. Never be afraid to walk away as this act in of itself can net you savings. Finally, always make sure you compare dealer prices. Many salesmen will meet a lower price offered by a competing lot rather than lose the sale.
Get Inventive with Financing
Auto dealers always have varying degrees of financing available. In many cases such financing, like 1/3 1/3 1/3 finance, can work to your advantage. You can also save more money with your own financing options. The rule of thumb is to research financing in advance and choose about three options that stand out. Try to select programs from the dealership itself as well as outside sources. Dealerships make a profit off their own financing so having an outside source can net you a better deal in negotiation. Compare the options to find the best one. Then when you go to the dealer you are fully prepared.
The old reliable way to save money on an auto purchase is buying used. Used cars can be just as good as newer models, and in many cases are the same car minus some non-important whizbangs. They also always carry a lower price. Some auto companies even have CPO programs that fully recondition the auto so it is almost new. However, with good easy financing options available, it is wise to go for buying a new one.
Sell Your Old Auto Personally
Another old reliable method of saving money on an auto purchase is trading in another car. Exchanging your current wheels for new always takes some cost off the top. However, you can stand to save even more if you sell your car yourself. Dealers may not always offer the best price in the trade so handling the sale yourself could net you some extra cash.
Last but certainly not least is buying the car outright with cash. This is a very cheap way to go as it saves you from the extra cost of interest. However, having the entire amount upfront is also the hardest path to take. Dealerships also offer extra incentives for individuals who pay upfront in cash. So if you can always try to buy the car outright it is one of the best ways to go.