Thanks to inflation and various other factors, buying a car is becoming significantly more expensive. The cost of fuel is compounding the issue, forcing many people to wonder whether there is any way they can save on their vehicle expenses.
Fortunately, there is. In this post, we take a look at how to save a large sum of money on your next car so you have more left over for the other things you need in your life.
Paying for a new car in the form of a loan was the old way of doing things. But now that credit is tightening and interest rates are going up, more and more people are looking to pay in cash.
When you pay cash, you miss the opportunity to invest the money elsewhere. However, you also save on excessive loan repayments that can really eat into your personal finances.
Research The Vehicle You Want Ahead Of Time
Don’t just go out and buy the first car you see advertised. Instead, do your research on sites like Edmunds, and find out what the vehicle is really like to own. Discover all the hidden costs that are waiting for you in the future.
Remember, there can be a vast gulf between what a car costs to operate depending on the manufacturer. Always check the average cost of ownership.
Try To Negotiate
Dealerships might not want to negotiate, but that doesn’t mean you shouldn’t try. Haggling a little can often get you money off the asking price and find out what a car is really worth.
Trade-In Your Old Car
Sometimes, you can trade-in your old car for credit. You might not get a great deal off the asking price, but you will get something.
Getting the best deal on a car can take a long time. Therefore, it’s good to be patient and just wait for the best offer to come along. Even if you have to wait several months, it’s worth it because of the financial savings you can generate when you make the right decision.
Compare Financing Options
If you have to finance your vehicle, always compare financing options. Beware lenders that ask for balloon payments at the end of the term. These can see you paying loan-style rates of interest, without being able to take full ownership of the vehicle.
Read All The Fine Print
Sometimes, lenders will hide some of the things that you don’t want to see about your loan in the fine print. For instance, they might subject you to penalties if you try to pay off your loan faster. They might also increase the interest rate after the first 12 months, leaving you far worse off in the future.
Lastly, make sure that you compare various dealerships to see which offers the best deal on the motor vehicle. Get a sense of what you can expect from the price range for your car. If it’s not a good deal, ask the dealer to explain why.