There’s nothing quite so exciting as buying a new car or even a car that’s just new to you, and it’s not just that new car smell. It’s…well…everything. What’s even more exciting is saving money on a car you have been drooling over.
The problem is, cars are crazy expensive these days. In fact, the average price of a new car is $33,560 dollars. Yikes! That’s a lot of money. Not to mention the average car payment nowadays is $503.
That takes a ton of money out of your monthly budget, so saving money on a car is important. Here are three great ways to do just that.
Saving Money on a Car – Used or New
These three tips will help you save money on a car whether it is brand new or used. Either way, you want to make sure you get the best deal you can.
1.Be ready to negotiate – What is most important is to understand that everything about the process is negotiable. Too often, when you get to the car dealership, you feel overwhelmed and out of your comfort zone.
Don’t be afraid of negotiation. What’s the worst that can happen? They don’t agree to what you want, and you buy your car somewhere else. Or, they do agree, and you get a great deal.
Remember, you are in charge. Even if the car price and terms are presented to you as a done deal, they’re not. Consider what they are offering as the dealership’s wish list.
The price is what they’d like to get. The terms are as well, but neither are written in stone.
Just because a number is written in ink doesn’t mean you can’t take out your pen and cross through it and change it to a number more in line with what you want.
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2. Do your research – If you want to take advantage of the first saving money on a car tip, then you need to educate yourself before you go to look at them.
Don’t stroll onto a car lot on a pretty afternoon and allow yourself to be carried away with the idea of a new car. It is too easy to fall into this trap.
If nothing else, Google the make and model of the car you’re interested in with the word incentives and see what pops up. You might be surprised.
You also want to spend some time comparing dealerships online. If you find the car you want at a couple of local dealers, then be sure to print out the information and take it to both.
Play one dealership off the other to see who will give you the best deal. Don’t be afraid to walk away. Often, you’ll get a phone call from one or the other offering you a better deal.
3. Talk car price first – Too often, the car salesman will want to talk to you about how much you can afford for your monthly payment. They do this so they can charge you more for the car.
If they can get you talking about your car payment, then the actual cost of the car seems to go out the window. Have you ever heard something like this, “So if I can get you in that car for $420 a month you’ll buy it today?”
Don’t let this happen to you. Be sure to negotiate the price first. Once you have agreed on the price, then you can start talking about the incentives to bring that price down even lower.
Also, make sure you get that price in writing before you move on to other aspects of the transaction such as your trade-in and financing.
Bonus Tip: You’ll get a better deal if you already have financing in place before you go to the dealership. Make your bank or a credit union your first choice for financing.
Have fun when you buy that new or used car, and be sure to get one you love, but do take the time to get the best deal possible. You’ll be paying on this car for the next four to six years, so if you do a little homework saving money on a car will be a snap.
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