Buying a new car is one of the most exciting times in a person’s life. Your heart races with anticipation as you consider the perfect make, model, and color for you. Perhaps you’ve been dealing with breakdowns and repairs on your old car for years, and you’ve finally decided that getting a new one is right for you.
Whatever your situation, new car shopping can also be a frustrating experience if you’re not prepared. With the right strategies, you can save money on your next new car purchase.
To get the most for your money and drive away happy, follow these new car buying tips:
- Determine whether buying a new car is right for you. Ensure that a new car purchase is the right fit for you, your lifestyle, your family, and your budget before you spend the money. If your current car is in good shape, you may want to keep it for a while and save yourself the money.
- You may be able to find a used car that’s in great shape for a lot less money. It’s not as glamorous or exciting, but it might be the wise choice for your pocketbook if you find a great deal.
- Pay cash if possible. You can save yourself a lot of money on interest if you can afford to pay cash up front. The larger the down payment you make for your car, the more money you’ll save. Cars lose value fast, and you can end up paying hundreds of dollars more than the purchase price of the car in interest unless you pay cash for the purchase.
- Take your time. It’s easy to get caught up in the excitement of shopping for your dream car. Car salesmen may add to the pressure by making you feel rushed. But if you take your time, you’ll be glad you did. You’ll make wiser decisions, save money, and be happier in the end if you slowly walk through the process, instead of rushing.
- Sleep on it. When you find the car you want and you’re ready for purchase, go home and sleep on it overnight. In the morning, after having a night to think about the terms and the other options you’ve seen, you may feel differently about the choice than you did in the heat of the moment of shopping.
- Shop around. If you’re willing to work for it, you can often save yourself hundreds of dollars by shopping around for the best price. You may also save by finding the dealership that offers you the best incentives for purchasing from them, such as cash back rebates.
- Be wise about your trade-in. If you’re trading in your old car, take steps to get the highest value possible for your vehicle. By handling the situation correctly, you can often increase the money you receive for your trade-in by hundreds of dollars.
- If you plan to trade-in your old vehicle as part of your new car purchase, mention the trade-in to the dealer only after your negotiation for the purchase price of the new one is complete. Often, you’ll be treated more fairly by the dealer this way and get more for your old car.
- When you discuss your trade-in, let the dealer know that you’re going to ask for bids to get the best value. The bid you receive will likely be a bit higher, and the amount you receive for your trade-in can vary widely from dealership to dealership.
- Go shopping when the next year’s models first come out. In about September every year, when the new car models come out for the following year, dealerships often have great incentives and sales to get rid of their inventory of the old models. This can mean great savings on a brand-new car that’s perfect for you.
Shopping for a new car can be both exciting and overwhelming. But if you follow these tips, you’ll save money on your next new car purchase and leave the experience knowing that you made the choice that’s right for you.
