5 Best Ways To Save Money On A New Car

  • December 16, 2017

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I have a great contributed post for you today on buying a new car. It's for informational purposes only, so please consult a financial professional before making any money or car-buying decisions. Got it?

buying a new car

Beautiful car, but this article is NOT sponsored by any car maker including Porshe. Sorry to disappoint!

We all know buying a new car is expensive, but it may be better than buying something second-hand in the long term. Modern cars are more reliable and are often fitted with the latest technologies, being both safe and eco-friendly. In short, you get what you pay for.

If buying a new car is something you are interested in, but you are worried about the expense, here are some helpful tips to help you cut the costs.

Buy within your means

To help you avoid any unnecessary financial stress, know your budget before you set out to the dealership. Like many of us, you may be swayed by your heart when you arrive, and if you haven’t got a price figure in mind, you are liable to make a costly mistake. Take into account the additional costs after purchase too, such as fuel and insurance, and add them to your budget. You may still be able to buy something you like, even if it’s cheaper than your supposed dream car.

Compare prices

It pays to commit to research before you buy a car, so have a look online and in car magazines. Consider the type of car you are after, and then look up all the dealerships in your local area to get a better deal. You may have to drive out of town, but the cost of fuel will be worth it if you can make a significant saving elsewhere.

Shop around for financing

The dealership may have a finance deal in place, but you may be able to find better rates with somebody else. Go online and compare car loan providers, and if their rates are better than the dealerships, take advantage of them. Alternatively, take evidence of the loan to the dealership, and you may be able to negotiate a better deal. Your credit score also comes into play with any finance deal. The better your score, the better rate of interest at your disposal. It may be worth paying off existing debts to improve your credit score before you think about buying a new car.

Consider ‘end of the line’ models

These models are often discounted to make space at the showroom for the brand spanking new models. They may not have every cutting edge feature, but you can still buy something classy at less than the original price. Therefore, bide your time, and wait a few months if there is a particular car model that takes your fancy.

Be careful of trade-in deals

It’s tempting to drive your old car into the dealership, make a trade, and drive away in a new vehicle. This may be convenient, but you may run at a loss. Price up your current car before going in and consider selling privately if you can make a better deal than at the trade-in. Alternatively, haggle with the dealer, and let them know about the better deal you have found. It’s in the seller’s best interests to make the sale, so you should always negotiate the price, despite the initial offer given to you.

Finally

In summary: know your budget, commit to research and haggle with the dealer. You may get a fantastic set of wheels, and still have some money left over in your pocket for additional features. Fluffy dice anyone?

5 Best Ways To Save Money On A New Car

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