Buying a new car is very exciting. It’s easy to get caught up in the excitement and the search for the perfect vehicle and ignore the easy ways to save money while on the hunt for your ideal automobile. Whether this is the first time you’re buying a new vehicle or you’ve gone through several in your years here are five tips to walk away with your dream car and save some money too.
Use The Internet
The younger generation can’t seem to pry themselves from the computer screen and their new forms of technology, but perhaps there’s some benefits that can be shared across age groups here. The internet is a database of information that can be used by anyone with internet access. With just a few clicks you can compare prices and features of vehicles that are hundreds and even thousands of miles apart. Using the internet as a resource before you physically go look at cars can help you find the prices you can expect and allow you to look for deals. You can comparison shop very easily and this gives the consumer much more bargaining power than years ago.
If the car is out of your price range, tell the salesperson. The price on the sticker is commonly referred to as the ‘sucker price’. Almost no one pays the price the dealership is asking for the vehicle. This is a time where being shy will cost you money and it pays to bring someone along with you. When you look at cars look for what’s around your budget and even a little higher. Pick the car you like the most and then talk about price. Once you have selected the car tell the salesperson what you would like to pay for a vehicle like this and watch the numbers fall down to a more acceptable price. Simply negotiating the price will show the salesperson you are serious about the purchase and they will do their best to work with you and make the sale. This technique will only get you so far but it’s a start.
Features and Add-ons
If you can’t get the dealership to budge on the price then see what they can throw in for free. Remote start, heated seats, more advanced features, new tires, and even new floor mats are little additions you can ask for. Recently I purchased a vehicle where they salesman said the price was the lowest he could charge me, I’m not sure how true this statement was but I asked what he could throw in for me while maintaining the current price. I got new tires and new floor mats on my 2006 vehicle so I may not have saved money off the original ticket price but in the long run I saved on a set of tires which is no small expense.
Car dealers have deals all the time, wait for the lowest prices of the season sales. Buying a one-year-old vehicle may be one of the best purchases you can make. They have been on the floor for a year and have not sold so they are already at a reduced price. When the new models come out the prices will drop even further. They will be trying to get rid of these vehicles to make room for the latest year models. There are usually two different kind of car buyers. There are the buyers who want the brand new vehicle, top of the line, and nothing less, and then there are the budget buyers who usually purchase a vehicle right after the warranty ends when it is cheapest. Being somewhere in the middle will allow you to save the most money on a newer vehicle and take advantage of the manufacturers warranty.
Do The Math
When purchasing a vehicle many are concerned more about the price than the interest rate on their loan. When you finance a vehicle through a dealership they are sending your application out to numerous banks and coming back with the options for you. Sometimes the option they give you is the one that provides the best incentive for them. Some dealerships get several offers but banks give them an incentive to suggest yours. Ask the dealership for all the possibilities they have come up with and they will give them to you. Selecting the lowest interest rate can help you save hundreds over the course of your loan. Think about the final price you pay once the loan is paid off instead of the ticket price. My car cost about $8,000 but after tax, title, licensing, and the interest on my loan the total will come to over $9,000. Some of the offers I was given allowed me to save on closing costs and extend the payments but the interest rates were higher and in the end I would have ended up paying over $10,000! Do the math before you buy. You can do this easily with a car payment calculator.