Buying a new car is expensive and as any thrifty shopper knows, it’s important to do your homework before buying, especially when it comes to large purchases. While buying a new car is never going to be cheap, you can of course save yourself a small fortune by shopping around and doing your due diligence before buying.
Don’t buy a new car
The absolute easiest way to save a fortune when buying a new car is to buy a used car. Used cars are a fraction of the cost of new and you won’t have a severely depreciating asset as soon as you’re handed the keys. Buying used is the best thing you can do to save yourself a fortune when buying a new car but you still need to do a few other things to save yourself a lot of money whether buying used or not.
Consider resell value
When considering buying a new car something you probably haven’t thought about is how much you’re likely to make when you next decide to buy another new car. Unless you intend on driving the car until it’s only good for scrap parts, you’ll likely be selling on in order to help finance your next car and the more you can make the better. Certain cars hold their value better than others. You’ll need to do your research here and compare the cars you’re considering for their resell value as well as their current value.
If you need a little help financing your car, you’ll need to compare quotes from different lenders. As lenders will all offer you different interest rates on car loans you’ll need to compare quotes from at least three financial institutions. It’s a general rule of thumb that dealerships won’t give you the best value for money so to make things easier you can pretty much skip this step and go straight to comparing financial institutions rates instead.
When buying new, you should always, always compare dealers and make them work against each other. Visit multiple dealers in your area to look at the makes and models you’re interested in. If they’re too far out of town to compare, you can always haggle with them online. Never accept the first offer you’re given or what the numbers written across the windshield says.
Wait for a good deal
When buying a new car, or anything for that matter, particularly large purchases, it’s important to maintain your cool and wait for a good deal. This doesn’t mean waiting for a good deal to find you, you’ll still need to work hard to get the price you want but it’s important to not get too emotional, too attached to anyone dealer or car and be willing to walk away. If the price isn’t what you want then move on. It’s as simple as that. Try again later. Dealers know that buying a new car is often an emotional purchase and one that too many people rush into. Don’t buy into it and stay calm throughout the negotiation process and you’ll end up with a much greater deal.