6 Tips on How to Save Money for a New Car

Buying a new vehicle is one of the most important financial decisions we can make, as it’s among the highest purchases most of us will make in our lives. For that reason, it’s best to carefully and thoughtfully plan out this purchase, to save some valuable cash, and get the best deal possible. To that end, here are some smart tips and tricks that will allow you to save money when buying a new car.

6 Tips on How to Save Money for a New Car

1. Research Your Options Online

Before you choose the right car for you, it might be wise to do some research online. Narrow your wishes and needs down to a couple of makes and models, and then find out the current market values of the vehicles you’re interested in on the internet. That way, you can compare the prices more easily once you start visiting dealerships, and you might even have an advantage when negotiating, ultimately allowing you to get the best deal you can.

2. Get Financing Ahead of Time

If you need to apply for a loan, be smart about your financing, whether you’re buying a new or used car. For instance, try applying for financing at several banks, instead of just your own, to find the best pre-approved rate. In case you live in the US, it’s recommended to do this during a two weeks, as the inquiries will only count as one knock off your credit score this way. Once you get down to the paperwork with the sales staff, you can even ask them if they can beat your pre-approved financing, and get an even better deal.

3. Try to Pay for The Car in Cash

Even if you keep your car looking good and in great working shape, cars are still assets that go down in value quite quickly, meaning that the interests you would be paying on a loan add up to a much higher cost than the vehicle’s actual worth once you finally pay it off. For that reason, it would be a better option to save up and pay for your vehicle in full using cash, if at all possible. Apart from saving some money that you would otherwise spend on interests, many dealerships will also offer cash discounts to their customers, making it the best solution overall.

4. Earn Money on Your Old Car

Although it might seem convenient to some, you don’t necessarily have to trade in your current vehicle at the same place you buy a new one. Take a cue from the Australians, for example, who opt for professional car removal in Sydney, where you can find prompt and reliable companies that not only give you cash for the sale of your vehicle, but also remove your old or scrap car for free. By doing this, you will be able to get a good deal on your vehicle, while receiving payment immediately, allowing you to put the money towards the new car.

5. Consider Pre-Owned Vehicles

If buying a brand new car isn’t the most important requirement for you, then consider getting a certified pre-owned vehicle, which has been carefully inspected for damaged parts, and then repaired and certified by the car’s manufacturer. This is an especially good option if the particular model you are looking for isn’t that much different from last year’s model. As long as the vehicle has good warranty and low miles, you might even be able to save thousands.

6. Choose Your Timing Wisely

Another way you could save money on a new car is by buying it in the fall, from August to October. This is usually the period when next year’s models have already arrived, while this year’s “old” models are taking up necessary space on the lot. As the dealerships are eager to get rid of “older” models as quickly as possible during this time, you might get a much better deal than expected. This method could be particularly helpful if you’re weighing the self-driving cars pros and cons, for instance, as their typically high cost could significantly drop in this period.

While buying a new car is always a large investment for the average buyer, there are many handy tricks you could use to save some money on a new vehicle, and get the best deal imaginable.

If you need to apply for a loan, be smart about your financing, whether you’re buying new or used cars in sacramento.

Author bio: Mike Johnston is an avid blogging enthusiast and experienced freelance writer with a focus in small business, home improvement, lifestyle, and sustainable living.