Want to Save Money on Your Next Car? Here’s How:
When it comes time to replace your car with something new, or if you’re buying your first car, you’re going to want to save as much money as possible. But that’s not always as simple as we want it to be. Car dealers may try to talk you into buying a car out of your price range, not to mention you also have to pay for your Florida tags and renew them each year, pay for your title, car insurance, and of course sales tax.
Don’t be quick to accept an offer on a car just yet. Follow these tips to help you save money:
Determine Your Desired Monthly Car Payment
Unless you have the money to pay in full for a car, you will have to take out a car loan and make monthly payments to pay it off. Figure out how much you can afford to pay each month, and make sure to factor in other expenses such as insurance costs. Remember to research financing options with the dealer as well as outside sources such as your bank and credit unions. Coming in pre-approved for financing is a bargaining chip that works in your favor.
Figure Out How Much Can You Put Down
The more you pay upfront, the less you owe in car payments each month. Ideally, you should put down at least 10 percent of the vehicle’s sale price. Lenders may require a higher down payment on newer cars. Also, remember that your trade-in can be able to serve as your down payment if it has enough value. If you do have a trade in, research what the dealer will comp you for it as a trade in and what you would get if you sold outright.
Decide When You Want the Car
In regards to when you buy the car, try to be realistic and patient. The more time you spend saving money, the larger the down payment and the smaller your monthly payment. Additionally, you may want to wait for a major sale to start so you can take advantage of discounts and/or free upgrades. Often the very end and beginning of the year present great sales offers as do the summer months. A lot of dealerships offer great deals in August, with high discounts on current year’s models. Shop around and be prepared to wait for a sale to start if you want the best deal.
Find out the Market Price of the Vehicle
One highly expensive mistake car buyers make is not knowing the market price of a vehicle before buying it. So, before you visit dealerships and shop, determine what a fair price is to pay for the vehicle whether its new or used. You can use websites like Edmunds.com or Kelley Blue Book (KBB.com).
Once you have chosen a model or models you like, you want to get free price quotes from multiple dealers to see who will offer you the best price on the vehicle. Inform them of the vehicle you want, let them know you are working with multiple dealers, and ask them for a price, including all the dealer fees.
Avoid Add-Ons and Extra Fees
The dealer may try to sell you vehicle add-ons, like an extended warranty, fabric protection, or rust-proofing. While some add-ons make sense, they will instantly hike the final purchase price. With things like extended warranties or insurances, you can shop around for independent quotes if this is something that you would want to have. The price can also be hiked because of model types. Unless you request the top model or get one as part of the deal you negotiate, don’t feel pressured into buying a higher model of the same car or trapped into because they say they are out of stock of other lesser expensive models.
