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Save Money on a Car Purchase

Save Money on a Car Purchase

1. Skipping the loan and paying in cash

If possible, pay for the car in cash because you will be saving on the money you would spend on interest.

There are some dealerships that will offer you discounts if you pay it on cash.

2. Comparing prices at multiple dealerships

Shopping around the different dealers is going to give you an idea of what you are going to get for your budget – which is also going to help you when negotiating.

3. Researching your car ahead of time

Before you can start the process of looking for a car, dealership or private party, take the time to know more about the car you are interested in, including the price.

An easy way to do this is by researching the Kelley Blue Book price for the specific make and model. It is also a good idea to look at the Consumer Report for the car.

4. Choosing used over new

When you get a car that has been used for a couple of years, you will get the chance of getting a car with the features you want while paying a lower price.

5. Don’t be afraid of negotiating

You should not be afraid to negotiate on the price, especially when it has some minor flaws. You can be able to get a lower price on your car by a couple of hundred dollars by just knowing the car’s value and being ready to walk away if the price is not what you are comfortable with.

This applies to both private individuals and car dealerships.

6. Using your old car for trade-in credit

There are many dealerships allowing trading in your old vehicles and getting credit to use in getting a new vehicle, and some even accept it as a down payment.

7. Being aware of the entire cost

If you want to save, make sure you put into consideration the entire cost. This is going to include extra features, interest rates, registration, and insurance. You might think you are getting a good deal and saving a lot by looking at what you will pay monthly, but you might be getting charged more when the interest rate has been factored in.

8. Being patient when searching

One of the worst things you can do when it comes to getting a car and saving money is thinking that you will go out and come back home driving your new vehicle.

This is what causes impulse purchases, which always means spending more money.

9. Comparing financing programs

The same way different dealerships have different prices on vehicles is the same way different financing programs are better than others. Consider PCP car finance as an option.

Have at least three options before comparing and choosing one that works for you.

10. Reading the fine print on the loan

You need to look at the fine print because the last thing you want is getting penalized for paying off the car faster.

You should go to the dealership with a plan. Know what upgrades you are looking for so that the excitement that comes with getting a new car is not going to make you agree to unnecessary add-on packages and up-sells.

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