Vehicle Value: 4 Tips to Save You Money on Your Next Car
Buying a car is a fun and exciting experience, but it can also be frustrating, time-consuming and expensive. You want to purchase the perfect car for you or your family, but you don’t want to spend a fortune getting the options you want.
These four tips can help you save money on your next car, whether you are a first-time buyer or replacing a vehicle you already own.
Arrange for Financing in Advance
One of the best ways to save money on a vehicle is to arrange for financing in advance. If you already have a relationship with a bank or credit union, talk to them about financing before you ever step foot on the dealer’s lot.
You can also shop around to different banks and finance companies. Just be sure to keep your applications within one 14-day period so that it only shows as one inquiry on your credit report.
Preapproval with a lender should be good for 60 days so that gives you time to shop around. This also keeps you out of the finance manager’s office where they attempt to sell you add-ons that increase the cost of the car.
Negotiate the Price First
Too often, buyers purchase a car based on what the monthly payment will be rather than the overall cost of the car. Instead, focus on getting the best price for the new vehicle. Once you have the price in writing, talk about the trade-in value and financing.
If possible, sell your old car yourself rather than trading it in as trade-ins can negatively impact your negotiations with the dealer. Read the fine print on all paperwork to be sure small amounts have not been added that increase the price you negotiated initially.
Consider Buying Used
We all love that nice, shiny new car smell, but purchasing a new car may not be your best option. According to Kelley Blue Book, the average person spends $13,500 more on a new car as opposed to a used car with similar options.
New cars depreciate faster than used cars. According to Consumer Reports, a new car could be worth just 54 percent of what you paid for it after three years. Sales tax is also lower on uses cars than it is new cars and today’s cars are lasting longer than cars built in previous decades. In fact, the average car driving on roads today is almost 12 years old.
Technology has also made it much smarter to purchase a used car today. Online sites like CarFax and AutoCheck let you review a vehicle’s history by entering a Vehicle Identification Number (VIN) to learn a lot about it.
Such as how many owners the car has had, whether it was a lease or purchase, if it has been in an accident, flood or part of a Lemon Law action and validate the mileage. It’s also a good idea to work with a dealership like Young Automotive Group or someone similar who deals frequently with used cars.
Know When to Buy a Car
August through October is a good time to buy if you don’t mind buying last year’s model. If you can’t purchase during the end of the model year, shop toward the end of the month.
Sales staffs at auto dealerships often have monthly quotas to meet and are more willing to negotiate a sale if the first of the month is coming up in a day or two.
These four tips can help you find the car of your dreams and purchase it with less damage to your wallet. The key is to research and understand the actual price of the car so that you can speak to the car dealer with as much information as possible.
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Category: Car Purchase
