Car payments are one of the largest investments you will ever make besides mortgages and student loans. However, there are many ways to help you save money on buying a car.
Try Investing in Classic Cars
Collecting fancy cars isn’t just a hobby anymore. Recently classic cars are being used as investment tools. Much like how people protect their investments by buying cast alternative assets such as wine, gold, or art to protect their assets. Classic cars are now a way to get loads of money in the long run.
Choose the Right Car Insurance
Car insurance is essential to have when you own a car, but there’s no need to buy it through your car dealer. It’s usually overpriced and folded into your car loan, so you end up paying more on coverage plus interest.
Bigger isn’t always better. Unless you need a big truck to haul things with, you might want to consider smaller models. Not only are they often cheaper, but they are also usually lighter, giving you better gas mileage. The insurance is also usually cheaper.
Use Your Car Longer
The cost of new cars rises each year. Not only that, but after you purchase your new vehicle, the cost will start to depreciate immediately and quickly. So it’s best not to be trading cars frequently, or you’ll lose lots of money on low trade-in values. Finding a good quality car and keeping it longer reduces the amount of money you’ll lose.
Save on Other Car Expenses
Saving money on your car doesn’t always have to end at the dealership. There’s also gas to consider, insurance, and maintenance. Understanding how much your car will cost in other expenses before you buy it can save you a ton of money long-term.
Don’t be fooled into thinking you need premium gas for your car unless it specifically needs it.
Regular maintenance on your car will help prevent future problems down the road while improving fuel efficiency and keeping the overall value of your vehicle high.
When buying a car, you’ll often look for the best deals. Sometimes the best deal for the car you’re looking for is located in another state altogether. Companies that offer car shipping to and from remote places like Alaska may have good rates to help you when you’re purchasing or transporting your vehicle. This helps you from having to put wear and tear on your vehicle when transporting it long distances.
Know When to Buy
Did you know that the timing of buying a car can save you hundreds of dollars? Of course, this all depends a lot on the type of car you’re looking for, but you can still land some good deals when you know when they’re priced at their lowest.
Like most products, there are certain seasons when a product is in higher demand and will cost more. For example, convertibles are often priced lower in the winter.
Another thing to consider is that dealerships want their salespeople to reach a monthly quota at the end of each month and are more willing to sell you what you want to reach that goal.
Learn to Negotiate
Salespeople are specifically trained to influence you into buying their deal. Knowing how to negotiate with dealers can save you lots of money. Know when to speak and when to stay silent. A salesman needs to know more about you to negotiate the price they want. You can do the same thing.
Not only can you negotiate the cost of your new vehicle, but you can also negotiate the terms of your car loan, the value of your trade-in, and some dealer fees. Unfortunately, title fees and registration are non-negotiable things.
Watch Out for Add-ons
The car salesman will always want you to bundle add-ons to your car payment. You need to know how to negotiate these to lower the price significantly. Note that you don’t even need a lot of these add-ons, so make sure you do your research to find out what you really need before making any unnecessary purchases.
Learn to Walk Away
You’ve got to know when to fold and walk away from a deal that isn’t in your best interest. Remember, a salesperson will always want to twist you into buying a deal that benefits them, and if you can’t reach an agreement, perhaps it’s better to find a better dealer.
There are hundreds of dollars you can save by implementing these examples. Try them out and see how much you can save on your auto purchase.