Vehicle prices are skyrocketing this year, outpacing even the torrid inflation rate. Along with the rising cost is the number of factors a buyer has to consider when they’re in the market for four wheels and a set of keys. With all of these things in mind, it’s understandable to feel overwhelmed or even apprehensive. It takes a significant amount of dedicated time and research to purchase the car you want while saving money in today’s market.
Traditional advice for car purchases still applies. Heeding market observations, like buying at the end of the model year from August to October, can help you take advantage of reduced sticker prices in light of new models hitting the showroom floor. That said, here are seven other money-saving tips you may not have heard before.
Take your time negotiating
Becoming a powerful negotiator means you’ve done your homework and are not afraid to walk away. Knowing market prices for cash payments or attaining leverage ahead of time for financing works in your favor. The crucial thing to remember for those inexperienced in haggling is to stay respectful and patient in searching for a new ride.
Consider buying online
Buying online offers many advantages, including an expanded selection of cars and prices. Out-of-state purchases, for example, are an excellent way for prospective buyers to discover new price points in different local markets. Those interested in this tactic should also save on shipping by using open-carrier auto transport from reliable providers like Guardian Auto Transport (https://guardianautotransport.com/).
Handle your existing leases or trade-in
Using services to handle your existing lease can make for a more affordable transition into acquiring a new vehicle. For vehicle owners, take your trade-in to various dealers and receive a written quote. Then, when shopping for your new car, use these as leverage by asking the dealership if they can match or beat the quoted prices.
Additionally, proactive sellers and buyers can learn how to make extra money with their old car by conversing with auto salvage yards and other avenues.
Negotiate a new lease, fees, and fine print
When you’re sitting down to file the paperwork on your new or pre-owned vehicle, it may feel like you’re in the home stretch, but this stage is where the actual negotiation takes place. Read before you sign and carefully scrutinize lease agreements, financing documentation, and any fine print. Specifically, inquire about additional fees you notice. Most if not all of these are negotiable.
Research features and comparisons instead of makes and models
Most people will ask about the make and model of a vehicle, but it’s better to start with features if you’re budget-savvy. Next, research online ahead of time and compare prices at multiple dealerships. To understand what features to look for, check out Consumer Reports’ new car features guide.
Consider the entire cost
The keyword to remember is “entire cost.” Dealership agents are notorious for obfuscating costs that don’t motivate a purchase. Among these include:
- Gas mileage
- Interest rates
- Insurance and registration costs
- Maintenance costs
The last thing you want is to sign on the dotted line only to be clotheslined by hidden fees.
Apply for financing ahead of time or pay in cash
If possible, pay cash for your vehicle. Financing is where dealerships see a lot of profits. If cash isn’t an option, don’t wait to apply for financing at the dealership. Instead, visit multiple banks and apply at each one. Once approved, present the documentation during negotiations and ask if they can offer a better rate.
Wrap up
Different brands and dealers each have their approach to selling you a car. Those who want to save money will accept that car buying is a process and shouldn’t be an impulse purchase. So take your time, do your homework, and arrive prepared to negotiate.
