7 Ways to Save Good Money When Buying a New Car

Source: fool.com

Purchasing a vehicle is a big expense for most people. Some try to accumulate the required amount over several years. Others take out loans. Everyone wants to save, but not everybody knows how to do it. That’s why we have decided to gather some options on how to buy a cherished automobile without spending a fortune.

1. Good Time to Buy

Experts advise waiting until December to purchase a new car. Various promotion and support programs are launched at this time in many dealership centers. Car shops are trying to sell off old stocks as much as possible on the eve of new arrivals. To improve reporting, they stimulate sales with significant discounts. However, there is a nuance. Such tricks may not work under the conditions of the current situation and shortage.

Pleasant terms for purchase may be established by a car dealership at the end of the month or quarter. However, if the manufacturer increased the volume of supply.

Another option to save on the purchase is to time it before the release of the updated model. If it’s announced that it’ll be available for purchase soon, the vehicle price in the showroom will be reduced. According to widespread data automotive specialists present, you can save on average from 5 to 15%.

In addition, there are good discounts during the holiday periods to stimulate sales. At the same time, you have to be more careful here. Some sellers display old prices in the form of a promotion.

2. Decide on a Model

Source: financebuzz.com

Choosing solely based on price without considering the features is not the best option. Before buying, it’s important to decide on the model. You can independently research the opinions of experts or consult with experienced people. Be sure to study the characteristics, compare them with the parameters of other cars, and test them. If the dealer understands that you aren’t familiar with the matter and don’t know what you want, they will offer a model for which it’s possible to receive a large bonus. Another common dealer scheme is to offer you the vehicle configuration that sells the least.

We recommend thinking about the future use of a vehicle. It means considering how often you are going to drive and on which roads. Also, inquire about the cost of parts. If you decide to buy a rare brand or model, you will face a shortage of spare parts in the future. As a result, this will turn into a significant sum.

3. Trade-In

If you decide to sell your vehicle to a car dealership, get ready for negotiating. To maximize profits, the dealer prices automobiles far below market value. Don’t settle for the first sum of money announced. Focus on the strengths that the car has. If you are persuasive and confident, you’ll be able to reach an acceptable price.

In addition, dealers can provide a bonus discount to potential buyers. Therefore, it won’t hurt to find an agreeable employee in advance who will meet you and offer more favorable conditions.

4. Car Reservation

Source: enterprise.com

If the model you have chosen is in great demand, then it makes sense to book it for yourself. Otherwise, someone agile will get it out from under your nose while you consult with managers, insurers, or the bank. Then you will have to wait for a new supply or agree to a similar but more expensive model.

If you book a car, decide on a car dealership with a good reputation. Then you can return the deposit if you change your mind.

5. Pay Attention to the Car’s Color

The cheapest cars are neutral shades. If you want to save money, look for a model in black, white, or gray. Metallic or mother-of-pearl coatings belong to the middle price range and will cost you more than basic versions.

Exclusively colored cars are the most expensive. If you intend to sell the car in the future, the price may not pay off.

6. Loan Usage

Source: m.economictimes.com

Having decided to take money from the bank, try to find out all the nuances. Loans are different, and each has its specifics. After you choose the best option for yourself, familiarize yourself carefully with the contract terms. It happens that after drawing up the papers, the interest rate or the cost of the car turns out to be higher than the stipulated one. Accordingly, the vehicle also becomes more expensive.

If you’re going to take out a loan at a car dealership, find out what the benefit will be if you pay in cash. It’s possible that dealers won’t want to miss out on a customer who is ready to buy. Therefore, they can offer a good discount to get you interested.

Another way to save money when shopping is to refuse all the extra features. If you want to reduce the car’s price as much as possible, then don’t agree to free maintenance, a gift set of wheels, and other bonuses. Focus on the money issue only.

If you can’t achieve what you want, it’s also possible to contact the senior manager or director of the shop. They are less interested in commission payments. Thus, there’s a high chance that an agreement will be reached.

7. Buying a Used Car

If the car is very needed but the purchase is postponed indefinitely due to a lack of funds, it makes sense to look for one on the car auction. It’s possible to find decent and affordable options that were released 3–4 years ago and are in good condition. They are usually sold when money is needed. As a rule, such a vehicle will cost you 30–40% less than it would at a car dealership. So, it makes sense to look for a salvage automobile on the used car market.