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 tips to save money when buying a car.

1. 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. If leasing or financing through a dealership, be sure to negotiate the payment terms and interest rate.

2. Pay Cash if it Makes Sense For You

Should you purchase your car with cash? As usual, it depends on your credit score, personal financial plan, and net worth. 1. If you can get a higher return on your money, it may be worth financing the vehicle instead of paying cash. 2. If you have high-interest debts, you are better off paying down the debt using the cash towards a car.

3. Compare the Cost Of Borrowing

To finance or lease, that is the question! In general, we recommend financing your car if you can afford it. Tip: Get at least 2 to 3 quotes for financing. You’ll need a good credit score to get a better interest rate from your bank or car dealership.

4. Look Into the Car’s History

A vehicle history report lists: 1.  Prior and current owners so you can verify that the person selling you the car owns the title to it. 2. The vehicle’s accident and incident history, so you have a complete record of any damage and repairs to the car.

5. Get an Inspection

Before you purchase the car, get an inspection done by your mechanic. Do not put too much emphasis on a seller or dealer’s certification. Instead, drive the vehicle, test all functions, and get a thorough inspection from a trusted mechanic before handing over the money.

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