How to save money while buying a car in Nigeria
Buying a new car is an important financial decision. Many considerations have to be factored into making a decision about what car to buy and how to finance the payment. We understand that not everyone currently owns a car as there are other options available, like taxis, BRT, boats and other means of public transport, this does not just work for many and therefore, the need to own a car becomes a necessity. Below are some strategies that will help you save while planning for that new car:
Acquiring a car doesn’t come cheap. This doesn’t mean that you have to break the bank to get a car with a good hood, fancy leather interior, moonroof, and great performance. You simply need a budget to keep you from spending beyond your financial capacity. Create a budget with your income and expenditure in mind, so that you can arrive at an amount you can realistically afford.
2. Create a List of Needs vs Wants
One time or the other in our lives, we are going to want some form of luxury that we cannot afford at that moment. However, it will be difficult to know what falls under needs and wants if you don’t have a list of priorities. It is, for example, important to have a car with a high safety rating, but a yellow car with a hatchback may not be as important as a safe car. Outlining your priorities can save you some money when buying a new car, a foreign used car or a locally used car.
3. Factor in Additional Expenses
If the actual cost of the car you are hoping to buy is N10 million, you should know that this is just the cost for the initial purchase. There are bound to be additional expenses such as maintenance and cost of fuel as well as insurance. These expenses are usually costly and should, therefore, be factored into the purchase.
4. Make Your Savings Automatic
Once you have a savings plan, you need to figure out how to keep the money you need for the purchase of the car. It helps if you can open a savings account where you can store your hard-earned cash with a resolve not to withdraw a dime from the account. Do not request a debit card for the account, as this will help you to control impulsive withdrawals and unnecessary spending.
There are apps that help you save money. Try such apps to see the ones that can fit into your savings plan.
5. Skip the Loan and Pay in Cash
Car loans are usually a great way to finance the purchase of a new car. It gets you to the reality of your dream car faster but doesn’t help you so much if your plan is to save some money in the process. Paying in cash will significantly reduce the cost of what you have to bear and some dealerships even offer discounts to customers paying in cash.
6. Compare Prices at Multiple Dealerships
It helps a great deal to move around several dealerships to compare prices from all of them before settling down for what your car will cost. This gives you a decent price range and leverage when it is time to negotiate for the price of the car.
Don’t be reluctant to negotiate the price of a car you’re on the verge of buying. Be on the lookout for minor flaws that you could use to get a reduced price. You can get a reduced price most times if you know the value of the car and you are willing to walk away when the price is not right.
Meanwhile, for all your car-shopping needs, visit Cheki.com.ng to view thousands of foreign used, locally used cars and new cars. These cars cut across popular car brands like Toyota, Honda, Nissan, Lexus, Mercedes-Benz, Land Rover, Audi, BMW and many other premium car brands and models.
