How to Save Money on Your Next New Car

White Jeep Grand Cherokee

A high car payment can really take a bite out of your budget, so it is important to drive the best bargain you can. If you are in the market for a new car, you need to shop around carefully, evaluate each potential vehicle and look at both the short-term and long-term costs of ownership.

One of the best ways to save money on your next new car is to seek out a low-mileage used car of the same make and model. You can save thousands of dollars by letting the original owner of the vehicle take the depreciation hit that comes with buying a new car.

Be sure to check the warranty carefully if you buy used instead of new. Warranty coverage varies, and it is important to make sure your used car comes with the same type of coverage you would get with a brand new vehicle .

The cost of insurance is another important consideration when buying a new car, and one that many buyers unfortunately overlook. Some buyers choose the make and model first, forgetting about insurance needs until it is too late. Checking the insurance rates ahead of time can save you thousands of dollars over the life of the vehicle.

Do not assume that your insurance rates will be low just because you are not buying a hot new sports car or expensive new SUV. The insurance rates on seemingly ordinary cars and trucks can be surprisingly high. You do not want to wait until the vehicle is sitting in your garage to find out that the insurance rates are unaffordable.

Knowing your credit score ahead of time can also help you get a better deal on your next set of wheels. If you do not already know your credit score, now is the perfect time to review your credit report and check your numerical score. You can get a free copy of your credit report, and some credit cards now provide your score for free as well.

Once you know where you stand with your insurance company and potential lender, it is time to looking for the best price on your chosen vehicle. You can start by seeking out the price the dealer paid for the car you have your eye on. There are a number of websites that provide this information, so finding it may not be as difficult as you think.

If you have your eyes on a used vehicle, you can use any number of guidebooks and web sources to find pricing information. The actual price you pay will depend on a number of factors, from your bargaining power and negotiating skills to local supply and demand, but having pricing information at your fingertips can help you drive a better bargain.

Once you know how much you can expect to pay, it is time to start getting price quotes. If you have a preferred car dealer in mind, it is best to leave that dealer for last and shop around at other neighborhood dealerships. Strike the best bargain you can with each dealer and get a written price quote from each one. Then, armed with those written quotes, head over to your preferred dealer and ask them to beat the best deal. You get to buy the car at the dealer you want to work with, and you still get the lowest possible price.

Speaking of price, always negotiate your deal based on the purchase price of the vehicle, not on the monthly payment. If you need to stay within a certain monthly payment range, use an online loan calculator to determine how much you can afford to pay for the vehicle without exceeding your budget. Resist the urge to extend the length of the loan to lower the monthly payment; doing so could leave you underwater as the car depreciates over time. If you need to keep your payment low, you are better off negotiating a lower purchase price.

 


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Use an online loan calculator to determine how much you can afford to pay for the vehicle without exceeding your budget….

Posted by Philly Auto on Tuesday, February 27, 2018

 

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