If you’re wondering how to save money when buying a car here are a few simple tips that can help you possibly save thousands.
First rule of thumb is if you can buy a car outright, then do it. It will give you much more leverage in the negotiations if you can buy a vehicle straight up. Dealerships want to get rid of their inventory. If you have the cash they have to listen.
Now, in most cases this is not an option. If you are thinking of making payments NEVER tell the car dealer the amount of the monthly payment you’re thinking of making. The more info you give the dealer the more they can use it against you. They might adjust rates or offer you a longer loan term.
Next, if you do need to finance your car shop around for rates before visiting a dealership. Dealers may offer financing as a way to make more money on your purchase. Check with your bank or with local credit unions and compare rates. Even a single percentage point on your interest rate can save you a lot of money.
We live in a great age for shopping. Whether it’s a computer, a car, or a house the internet allows us to shorten our time spent shopping around by eliminating unnecessary “boots on the ground” searches. Gone are the days of going from dealership to dealership to hassle prices. With sites like CarMax and TrueCar spurring competition many dealerships have adopted the online sales model. Once you’ve determined what type of car you want reach out to a couple of dealerships and see what they can offer you in regards to price. You will then have several offers to use as a negotiation tool when you do visit dealerships. If a dealer refuses to quote you a price disregard them. If they are unwilling to give you a simple price figure imagine having to deal with them in person. It’s not worth it; move on.
When it comes to saving money, probably the best advice is to shop for used cars. This will save you thousands immediately. Even if you have your heart set on a new car consider buying the previous year’s model. Dealerships want to make room for new inventory when the current year’s model become available and will be more open to negotiation.
Now you know the basics of how to save money when buying a car. Gather all of your information beforehand and go out and find that deal! And don’t be afraid to walk away from a deal if it’s not exactly what you want. If the dealer sees that you are willing to walk then you gain the upperhand. Kindly give them your offer, your contact information, and wait for them to call. Chances are they will!