Monday, December 15, 2014

How to Save Money When Buying a New Car

Nothing beats being prepared and doing your homework no matter what the situation. When purchasing a new car it is extremely important to head into the transaction fully prepared. Car dealerships are in business to sell cars and make a profit. Otherwise there is no point to being in business. And most companies exact a reasonable profit from every sale and customers get a fair deal. But in those instances were a dealership is trying to get a little too much profit or take advantage during a deal, consumers should be privy to a few common loopholes in the car buying game.

Price and compare

If you don’t care about the price, why should a dealer? Perusing the inventories of several similar brands offering similar features keeps options open when discussing price. After doing an online investigation to determine which makes are most appealing, it is time to visit the dealers and see what local offers are being made. Dealerships like Tischer Auto offer price comparisons that can be made under one roof. Some dealerships may only sell one new brand at a location, but can check with partner dealerships to help compare prices.

Stick to the basics

Anymore, car makers are in competition with their factory warranties that outlast the life of most vehicles. So why pay for an additional dealer warranty? The dealer package, including warranties and undercoating and extra protections are a classic scheme to get more money rolled into the monthly payment, costing the buyer more in interest throughout the life of the loan. If a dealer add-on package is attractive, it should be paid for separately in cash.

Trade in tactics

Offering up your old car as a trade in is a standard practice. But negotiate the new car purchase price before mention of the trade in. This creates two separate transactions and you know what price you are being paid for your vehicle. In some instances, more money can be had from the old car selling it privately.

Secure your cash

Dealership and brand financing plans are not always the best route for your money. Outside financing sources such as banks and credit unions offer competitive terms and repayment plans. Have your financing in place before making an offer on any new car. With that said, you want to save money. The place you buy your car from wants to make as much money off of you as possible. 

When you go to buy your car, have a price range in mind and stick with that price range. Don’t go too far above it as it will defeat the purpose of you saving any money on your new ride. You will also want to negotiate the prices down as much as possible. You will also want to negotiate a number lower than what you are willing to settle for. It will help you keep your cash secure and it will give you the best chance to save some money.

For most, buying a new car is the second largest investment of your life. However, it is not the second largest investment you will make because you will do it only once, but you will likely have to buy a new car multiple times throughout your life. Learn from your first experience in buying a new car for the future ones that you buy. Make sure you especially learn from your mistakes in dealing with the salesman. Learn how to negotiate. These skills will help you be able to buy a new car for the years to come and you will get the best deal that will allow you to save money. More importantly though make sure it is a deal you can live with and enjoy for years to come.

No comments:

Post a Comment

Join 1000's of People Following 50 Plus Finance
Real Time Web Analytics