Did you know that each year over 53.3 million new and used cars are sold? Cars have become such an important part of day-to-day transport for people that it’s hard to imagine life without them.
Unfortunately, many dealerships and financing companies know this. As a result, they’re often able to take advantage of you, whether it’s with an overpriced car, or hidden interest rates and fees. However, the good news is there is still a way to be a savvy consumer when you’re car shopping.
How? Simple: by reading these eleven car buying tips! In this article, we’ll teach you everything you need to know about saving money when you purchase a car. Let’s get started!
1. Choose a Used Car Over a New One
This one might seem obvious, but you can save serious money by choosing a used option over a new one. And just because a car is used doesn’t mean it’s bad. Many dealerships offer cars that have been certified pre-owned.
This means that any damaged parts that need repairing have been replaced and certified by the manufacturer.
2. Shop Around At Multiple Dealerships
Not all dealerships are the same. Some might offer higher or lower prices, others might be showing off deals that can lead to major savings. As such, we don’t recommend committing to the first dealership that you come across.
Instead, shop around town so you can get a sense of how much things cost everywhere. Then, commit to the option that makes the most sense financially.
3. Don’t Be Afraid to Shop Online
You can save a lot of money by shopping online instead of in person. There are plenty of auto trader websites that let people list used cars. Others, like Craigslist, can offer potential bargains.
However, just make sure that you get the used car checked out before you purchase it. Otherwise, the driver might be trying to pass off a lemon on to you.
4. Pay In Cash If You’re Able To
One way that car sellers make money is through auto loans. Auto loans make money because they add on hundred or even thousands of dollars in interest payments.
While this is done to front you of the money, it can add a lot of unnecessary costs to your final car payment price. Luckily, you can avoid this all by paying in cash.
While this might be a difficult financing option for some individuals, it comes with a lot of benefits. Many dealerships will give you a discount if you’re able to pay entirely in cash.
5. Do Any Financing Before You Get to the Dealership
Many dealerships offer their financing. However, we recommend getting the best auto loan you can from the bank before you start shopping. Then, find the car you want at the dealership.
Once you get down to paperwork you can ask the dealership if their financing can beat the one you got at the bank. The secret is to not start with their financing.
6. Use Trade-In Credit With An Old Car
Have an old car you want to get rid of? Try trading it in to save some money on your new vehicle. Many dealerships offer a program that allows you to trade in your old vehicle for credit toward a new one.
7. Know What Your Car Costs Before Going Into the Dealership
You must do your research before you go into a dealership. In particular, you should know the average cost of the car you want. That way, the dealer doesn’t take advantage of you by charging too much.
You should also have some other questions ready for the dealer. We recommend asking these seven whenever you need a car.
8. Try Negotiating With the Dealer
You shouldn’t be afraid to negotiate when talking with the dealer. This is especially true if you notice potential flaws in the vehicle. Most of the time both dealerships and private individuals will be willing to lower the price by a few hundred dollars.
And, if they refuse, then you can always take your business to a different dealer that’s more receptive.
9. If You’re Going to Buy New, Then Buy an End-of-the-Year Model
Typically, the car manufacturer’s introduced next year’s model from August to October. As such, you can save a lot of money by shopping for “old” cars in Fall.
Oftentimes these previous year models are taking up space on the floor. As such, dealers are more eager to get rid of them, which means you’re in a better negotiating position.
10. If You’re Getting a Loan Make Sure to Read the Fine Print
It’s important to always read the fine print when it comes to getting an auto loan. This doesn’t just include basic information like the interest rate. It means things like penalties and fees.
For example, many loans charge penalties if you pay off your car too early. If you want to avoid this, then make sure that you know your loan inside and out.
11. Be Patient
This tip might seem simple, but it’s one of the most important rules to follow. If you don’t see a car deal that you want, then don’t purchase something anyway. Instead, wait your time. You’d be surprised.
In months or even weeks, there could be a new option that checks off everything on your list. So, be as patient as possible during the car buying process.
Did You Enjoy These Car Buying Tips? Keep Exploring
We hope these car buying tips helped you learn more about how to save money during this process. There’s no doubt that getting a new or used car can be a stressful process.
However, as long as you follow these tips, then you’re sure to get the automobile of your dreams at a price that doesn’t break the bank.
Did you enjoy this article? If the answer is yes, then you’re in the right place. Keep reading to find more topics that you’re sure to love.