Buying a car isn’t exactly an everyday expense. There’s a lot of misunderstanding about how to get a good deal on a car whether it’s new or used. Not to mention, a lot of buyers are quick to decide on a car without thinking about the value they’re getting out of it.
As such, it’s worth learning what the best way to buy a new car for the right value is before making your purchase. This is especially helpful if you’re a little tight on funds, but it also helps you make the most out of the money you have.
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Here are five tips to keep in mind when buying a car
Get a Good Trade-in Value
Maybe this isn’t your first time buying a car, but it has been a while since your last purchase. Not to worry, your old vehicle can still get you a few thousand dollars in trade-in value.
To be sure you know exactly what it’s worth, though, get the value figured out before you go to the car dealership. This way you don’t risk settling for an undercut trade-in price.
Do Your Research
While you’re researching the value of your current car, you may as well do some digging about the car you think you want to buy. Look at owner reviews and performance details. Check everything from the maintenance needs (and costs) to how good the gas mileage is.
This helps you save as much as you can in the long-run. You may think you want that fancy new sports car now, but it may turn out that a sedan is more cost-effective – and even more comfortable.
Learn How to Negotiate
Whatever kind of car you decide on, you have to know a thing or two about negotiating if you want the best deal possible. The main thing to keep in mind is not to mention your trade-in until the end.
This allows you to get the price down even more. If a dealer will sell a car to you for $18,000 without a trade-in, the purchase ends up being somewhere around $14,000 – $16,000 once the value of your old car factors in.
Don’t be afraid to leave the dealership, either. Lots of places want to make the sale happen right away, but they’ll play hardball to do it. If you wait a bit and come back, the ball may be in your court when it’s time to settle on a price.
- Also See – 3 Tips for Buying a New Truck
Focus on the Purchase Price
Speaking of the new car’s price, remember to negotiate in the purchase price. Taking down your monthly payment only means you’re going to end up paying on your car for longer. Getting a car dealer to lower the purchase price, though, is where the money-saving actually happens.
Don’t Forget About Insurance Costs
Just when you think you and the car dealer have come up with the best deal possible, take a second to think about insurance. You don’t want to drive home with a fancy new sports car or pickup truck and then realize your car insurance has skyrocketed.
Also, watch out for add-ons and special features that some dealers may try to upsell you on.
You don’t need those things, and you don’t want to pay for the extra expense.
The Best Way to Buy a New Car Fast
It’s one thing to learn what the best way to buy a new car is and another to figure out how to get the money you need in a short amount of time. Be prepared to make a down payment before you get to the dealership. This can work in your favor when negotiating, and it can push back when your first monthly payment is due, too.
For money-saving tips and tricks to help you buy your next car, click here.