Tips on How to Buy a Car and Save Thousands
Did you know that a person spends on average about $500,000 on car-related expenses during their lifetime? They necessitate gas to function, you will need an insurance that will help you save money at the right time, and lots of maintenance work.
If you want to save money on your car, you must think it from the start how to proceed, from the purchase.
Make a Plan
Have you thought on how to buy a car and what is the process? Even if you’re not the kind of person that will put everything on paper, creating a list with the characteristics of your dream car will definitely help you do the right choice. After writing all down, see which ones are your priority.
Write down any detail about:
– Fuel efficiency
– Resale value
– Miles per gallon
– Engine power and size
Save Money and Learn How to Buy a Car
Choose a smaller size instead of a big one. A smaller model is often cheaper and it will also help you save money on gas, as they are lighter. Also, insurances are cheaper in smaller versions.
You can save up $400-$600 per year.
If you know people who often exchange their cars, know that they are losing lots of money in this trade. After buying the car you want, keep it at least 5-7 years, as new cars are expensive and used ones have their value depreciated. You’ll lose much money if you trade them every couple of years. You can save up $500-$1000 per year.
Buying a New VS. a Used Car
Depending on your criteria for buying a car, choosing a new or a used one surely has financial differences.
- A new one costs more. As it should be, so this choice will take more money out of your pocket.
- If you buy a new one, you’ll meet the “lemon effect”, meaning an immediate depreciation as it will lose 11% of its value.
- The new one will have higher insurance costs.
- However, if you choose to buy a used car, you’ll need to invest more money in its maintenance. You won’t receive information about its owner, how often it was taken to service or if it got in any accidents.
Decide Your Budget
After you make the plan, you should decide on a budget. This will stop you from exceeding your limit if you take into account all the criteria above.
- Google your offers first. The internet is the easiest and first choice. Be smart, know what you want and exactly how to be so the car salesman won’t trick you with gaps you might have if you don’t do your research first. Googling your options will help you know exactly what you can get for your budget.
- Save your results and then cut the ones that match your criteria the least. That’s how you will know if a dealer has the prices too high.
Go to Dealerships
Take walks to dealerships with no intention of buying. This is how you’ll learn how to buy a car like a pro. You can even opt for a day when the dealership is closed so you won’t be forced or convinced by the dealer to look at a certain deal and walk freely through all items. However, if the salesman approaches you, tell him you are only doing market research and you don’t intend to buy so he won’t influence you.
Have a Good Score Before the Purchase
Also, always choose to make a loan from a bank or credit agency and not directly from the dealership, as this will surely make you lose huge quantities of money.
And absolutely always, prepare yourself to walk away at any time when negotiating. You might lose an offer, but think of it as an investment, you want to get the best out of it.
Purchasing a car can appear to be a hard process at first glance, but with all these steps on how to buy a car, you’ll make yourself ready to make the perfect choice for the perfect price.