Purchasing a car is a big decision, and it should be made after hours of due research. As a large sum of money is involved in the purchase of a car you can easily lose a lot of unnecessary money if you are not educated on all the factors to take into consideration when purchasing a car. The following seven tips are good ways to ensure that you save as much money as you while making your first car purchase.
1. Pay in cash
While making a large purchase, it is often tempting to opt for a loan as rarely do we have that large of a sum available on hand to make such a purchase. However, this option, while useful for many should be avoided as much as possible. Loans are very useful in the short term as they allow you to purchase your object of desire as quickly as possible, but in the long term, you are paying a much greater sum than you need to in interests. Hence if you can wait a while and save u the cash, avoid the hassles of loans.
2. Used cars are a very good option
While it is tempting to opt for a brand new product no matter what the product is in the case of cars, this is not the wisest choice. This is something that newcomers in the world of the automobiles are not aware of, but the veterans will always recommend. You can get all of the features that you want out of a car at a much lower price if you simply opt for a car that is several years old. This is not that great of a drawback as the life of cars can extend up to 30 years.
3. Trade-in your old car for credit
If you have owned a car for a while and are looking to switch to a newer model, then don’t just look at your budget in cash, consider all the credit that your old vehicle is worth. The odds are that your old vehicle isn’t in too poor of a condition and can be worth a lot of credit at most dealerships. So if you simply trade in your old vehicle at any dealership, you can get a new car at a much cheaper cost due to the credit that you will attain due to the trading.
4. Buy at the end of the year of a particular model
The fall season is usually when the new models are beginning to roll in, and the older model is started to be looked upon as something that is just taking up room on the lot and the dealerships are in a hurry to get rid of them. While this is not going to get you some massive saving but it will get you that year’s model at a comparatively lower price than at the start of the year. So if you are willing to wait a little while before making that big purchase for that year’s model, August through October are the days when you want to hit the lots.
5. Calculate the entire cost
When saving up to buy a car don’t just calculate the cost of the car, there are several other payments that you will have to make. These include interest rate (in the event of a loan), extra features, car insurance, and registration. Include these in the total saving you are going to make, and you will make a much more cost-effective purchase than otherwise.
6. Negotiate with smarts
This is a simple tip but one that needs a lot of stress. People have a tendency to think that there is not a lot of room for negotiating for a big purchase like a car, but they’re actually is. This room for negotiation is best exploited if you are aware of what to look for in a car. You can check for the paint job, the interior condition, rims, etc. The conditions of some of these key areas of the car are a determining factor in how much the cost of a car is negotiable. The mindset to adopt is that everything isn’t always as good as it seems. Be ready to scrutinize.
7. Read the fine print carefully
If you do decide to opt for a loan make sure that you read the fine print of the loan very carefully to ensure that you are not subject to any penalties that may come as a surprise to you. in the rush of purchasing a brand new possession people have a tendency to get clogged down with unnecessary up-sells and add-on packages. Be on the look-out for such schemes and ensure that you go into the dealership with a clear picture of what you want in mind — nothing more and nothing less.