4 Ways to Save Money When Buying a Car

Buying a car is something that most of us will need to do at some point in our lives. It is a big decision and there are so many different types of vehicles that you can consider. Do you want a small sports car that can go fast? Perhaps you want a rugged truck to go off-roading in? Either way, buying a car can be a fun and exciting time.

But while it is an exciting time when you are purchasing a new vehicle, it can also be pretty expensive. Buying a car isn’t cheap, and they can easily cost you thousands of dollars. But instead of giving in and spending an arm and a leg on a vehicle, here are a few tips to help you save some money during your next car search.

Do Your Research and Educate Yourself

One of the most important aspects of saving money when buying a car is to do some online research and educating yourself. You should not only educate yourself on what sort of cars fit your needs and what are the appropriate prices for them, but also about the practices of car salesman.

The more time you spend researching fair prices and various pros/cons of different vehicles and the tactics sales people use, the more money you will be able to save in crunch time. You should also do research on whether to buy new/used, whether to pay in cash or with financing, and everything in between. There are several great online resources to get more information to educate yourself.

Know That Everything is Negotiable

When you purchase a car from a lot, there is a good chance the salespeople are telling you there are several fees or add-ons that are required when you buy a vehicle. If you want to be an intelligent buyer, you should be aware that virtually everything is negotiable, not just the price of the vehicle.

These add-ons and fees can often be negotiated down or eliminated completely. These numbers can easily be crossed out or the amount can be subtracted elsewhere. While some dealerships might not be willing to budge on the numbers, others certainly will if they want the vehicle gone.

Get Financing Beforehand

Oftentimes, getting financing directly from the dealership can be more expensive than simply getting it from a bank. As a result, you should get pre-approved for a car loan before looking for a car. The pre-approval should be active for around 60 days, which gives you lots of time to search for a car, and prevent yourself from having to spend more through dealership financing.

Also, since many dealerships want you to finance through them (as it equals more money in their pocket), they might actually be willing to beat the deal you were able to get from the bank or other lender. So there is really no reason to start your car shopping before already having (or being pre-approved for) financing.

Shop Around

When looking for a car, just like searching for anything,it is important to look at more than one place. Each different dealership or website will have a different fleet of vehicles, different prices, different deals and sales, and more. You should never purchase a car that you see on the first lot you visit, unless your research shows it is a spectacular deal.

In addition to making sure you find what you want, shopping around is a good way to gauge the prices from one dealership to another. Also, this can help you pit two dealerships against each other, which could lead to even more savings for you.

In conclusion, these four tips are just some of the many ways that you can save money when buying a new or used vehicle.

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