How to Save Money When Buying a Car: 10+ Ways to Save
Save Money When Buying a Car
A car is one of the most expensive purchases we make other than a home. It’s a big purchase, and it can be easy to get caught up in the excitement of buying the perfect one. follow these 12 tips for how to save money when buying a car.
1) Know How Much You Can Afford
One of the essential steps in saving money when buying a car is determining how much you can afford to spend. Setting a budget will help narrow down your choices and avoid overspending on features that are not necessary for day-to-day use.
2) Go For a (Slightly) Used Car
According to CARFAX, new cars lose as much as 10% of their value after just a month. Then, within the first year, cars lose up to 25% of their value. So while there is an unquestionable comfort knowing every part of your new ride is brand new and unused, it is not worth paying the premium.
3) Research For Reliability
Once you have a couple of cars and models in mind, check out Consumer Reports to ensure there are no concerning issues reported. Then, read their list of best and worst cars to buy, along with researching the specific make and models that are of interest to you.
4) Know the Market Value
Shopping around for deals and comparing different prices will help ensure that you know the fair value of your vehicle. A site like Edmunds or Autotrader is convenient for comparing prices on new and used vehicles, getting online quotes, and understanding the fair market value of the car you want.
5) Determine the Total Cost Of Ownership
The total cost of owning a car is more than just what you pay for it. For example, how much will insurance be? How much gas does this car use per mile? How long do parts last, and how expensive are they to replace? For example, a new set of tires can easily run you close to $1,000!
6) Negotiate (Overall Price, Financing Terms, Fees)
Negotiate the overall price of the car before including any financing or fee. Be prepared to walk away if your offer is not accepted and the deal does not fit into your budget.
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