In my opinion, the second you buy a car you should be saving for your next one. They are a large expense and while there are many ways you can save money with them, often the car dies when you have no cash then you need to get a loan.
Finding a sale on clothes or grocery items is nice. But saving money on a big-ticket item like a car can really make a huge difference to your financial wellbeing. Buying a car is always a nerve-wracking experience – not just because of the large investment involved, but also because the safety and comfort of you and your family depends on making the right decision. To help you buy the best car within your means without breaking your budget, here are some tips for saving money on your next automotive purchase.
Choose Your Finance Selectively
Unless you’re paying the full price upfront, a car is a purchase you usually pay for over time. Carefully selecting your financier can help you minimise the amount you pay in interest over the period of the loan. It’s important to do a fair few comparisons and plenty of research into lenders before making your final decision.
Keep in mind that reputable financial institutions can typically provide car loans with more competitive rates and/or conditions than what you might be offered through dealership finance options.
However, the best alternative depends on your unique circumstances, so be sure to weigh up the pros and cons of every option. You could try out Heritage Bank’s handy car loan calculator at the bottom of the article to find out what you’d be paying.
Forget About Buying New
It’s a common dream: cruising around town in the latest model, jealous looks shooting your way from the pedestrians and other drivers you pass by. But in reality, this dream is simply unattainable for many – and illogical for many more.
Choosing an ‘almost new’ vehicle can save you a huge number of dollars while providing you with just about everything you would expect from the newest range. At the end of the day, keeping the back account healthy is more important than a status symbol that costs a lot more and will be outdated in a year’s time anyway.
Consider A Private Sale
Sometimes private is the way to go. If you’ve been tempted by a particular model in a caryard, look online or in your local paper to see if something similar with comparable kilometres is available through a private seller.
There are no prizes for guessing which option will be less expensive! While people are right to be cautious when it comes to purchasing a car this way, a few independently organised checks can give you peace of mind when making a private deal.
Negotiate Like A Pro
If you do decide to go with an official dealership, go prepared. Always approach price tags as suggestions. The best weapon to wield when going into battle with a car sales rep is research. In particular, having some lower prices from competitors as ammo is a sure way to start talking a price down.
While negotiating is the dealership’s game and you might just be a guest, having up-to-date information to back up your counteroffers can go a long way towards boosting your confidence and securing a better deal in the end.
Driving away in your new car feels great. And it feels even greater if you have managed to save money on your purchase, doesn’t it?