Buying a new car can be an exciting but daunting process. It’s fun to visit the car dealer lots and look at the rows of sparkling new vehicles and schedule test drives. The financial aspect of the car-buying process can be a challenge, even if you’ve purchased a vehicle before. Here are the best ways you can save money when buying a new vehicle.
Consider Going Electric
If you want to lower your cost of driving over time, it makes the most sense to consider buying an electric or hybrid vehicle. While some models of electric and hybrid cars may have a higher sticker price initially, you can save more money throughout the life of your vehicle if you purchase one. You’ll save big time at the gas pump and avoid the frustration of constantly rising gas prices.
Use the Internet
Today, most car buyers use the internet as their primary resource for information before visiting the dealership. The internet can be a great resource to give you options for potential vehicles you like and pricing details. Sometimes, you can find the exact model of car you want at the right price by checking out offerings from dealers in different areas.
Many consumers are unaware of potential car-buying incentives that they may qualify for and miss a money-saving opportunity. You can look into possible incentives before you go to the dealer and save hundreds or thousands of dollars. Some individual dealers offer incentives during special sales’ events, or you may qualify for an incentive based on your own status, such as a recent graduate.
Be Strategic With Your Trade-In Vehicle
If you have a car to trade in, you can also get more money to put into a new vehicle purchase. Before you go to the dealer and accept their trade-in offer, do some research about the value of your older car. Instead of bringing in your car for a trade-in, you may get a better price if you privately sell your vehicle online. You can also use your trade-in value as a negotiating point once you’ve decided on the right new car.
Get a Low Interest Rate Loan
Another great way to save thousands of dollars on your car purchase is to get the lowest interest rate possible for your car loan. If you have a strong credit score, it will be easier to find lenders who will give you the lowest interest rate. Many lenders use online forms and applications to give you an easy car loan approval process. Once you have found a loan with the terms you want, you can print out the details and take your information to the dealership to purchase your new car.
Wait for Sales and the End of the Year
It’s also better on your wallet if you time your car purchase to match up with clearance sales and holiday special times at the dealership. At the end of the year, it’s also a great time to buy cars from the dealership. Dealers want to move the inventory out at the end of the year to make room for the new models coming out in January. You may be able to negotiate a much lower price during this period.
Take Your Time
Finally, the best piece of advice for buying a car and staying within your budget is taking your time. Don’t feel pressured by the salespeople at the dealership to buy something when you’re not comfortable. If you don’t have a car and need transportation, use a rental or a borrowed car until you are ready to purchase.
Buying a car is one of the most important decisions you will make. Do it right and save more of your cash by following these important tips.