How to Save Money When Buying a Car

Saving Tips for Buying a New Car

Saving money can be a challenge for anyone, especially when you are looking to make a large purchase. One of the most expensive purchases you can make is to buy a car, but there are certain tricks you can use to help cut costs along the way. Whether you are replacing an old vehicle or a first time buyer, we put together a few tips to help you buy the car you need without going over your budget.

Best Time to Buy

Before you prepare to buy a car, it helps to know the time when prices are lowest. Most dealerships work with a quota system that gives them a monthly bonus once the quota is met. If you go to a dealership towards the end of the month, you will notice that prices have gone down so that sales people can sell as many cars as possible to meet the monthly requirement.

Model Year

It may be tempting to buy the latest version of a car, especially when it comes with new features. However, the newer the car, the more you’ll have to pay. Instead go for the model from the previous year. While it may not come with everything the newest model does, the models will most likely be very similar in appearance and features, and you’ll save money from the start.

Online Comparisons

Before actually making a trip to a dealership, look at prices online. Websites like TrueCar.com, CarGurus.com, and Kelley Blue Book allow you to compare what other consumers have paid for the car you want. You can even buy some cars online. If you want to go to a dealership to buy your car, using these sites will help you figure out how much you should be paying and if you are being overcharged.

Negotiating

One of the great things about buying a car is that you can often negotiate prices. It is important to remember when negotiating that you are talking specifically about the full price of the car. Some dealers may try to trick you into lower monthly payments, but this allows them to extend the payment period and overcharge you for the car in the long run. Instead, discuss how much you will be paying for the car altogether and then talk about the monthly payments from there.

Dealer Competition

You can get better results while negotiating if you increase the competition between dealers. While discussing the price, make sure to mention if you have a better offer elsewhere. This will encourage whoever is trying to sell you the car to lower their prices in order to get the sale.

Whether you choose to use all of these tips or just a few, you’re now better equipped to stay within your budget when buying a car.

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