Purchasing the right vehicle is an important decision, especially if you’re a first-time buyer or are looking for your dream car. As you go through the search and purchase process, an important thing to keep in mind is ways to save money on your vehicle. From the time you purchase your vehicle, they can be costly, especially if you neglect important things such as routine maintenance. You don’t have to cut corners to have an affordable vehicle, you simply have to find ways to save money throughout your ownership. Here are some helpful tips to keep in mind as you head to the dealership.
Pay Cash
Financing a vehicle can be costly, especially if you get a high interest rate on your loan. If you can afford to do so, paying for your vehicle in cash can offer significant savings throughout the years. You’ll save thousands of dollars in interest alone, making this option a smart choice for money-savvy people. You may even find that some dealerships offer discounts to cash-only customers, so shop around to see if any dealerships are offering this incentive. If you can’t afford to pay all cash for your vehicle, don’t be discouraged. You can cut down on your monthly payment by having a larger down payment when it’s time to sign the paperwork.
Shop for Insurance
Before you purchase your vehicle, shop around for cheap car insurance to save money on your monthly premiums. Talk with your insurance agency to find out if there are any discounts you can take advantage of, such as good driver promotions or additional savings for bundling your auto insurance with your homeowners or renters insurance. You may even save extra money by paying your entire premium up front, so talk with your provider to see how much of a discount you’re entitled to by choosing this option.
Choose Used
If the idea of buying a brand new car is giving you sticker shock, don’t give up. You can find great deals on gently used vehicles that still offer great perks without the hefty price tag. Just because a vehicle is used, it doesn’t mean it won’t last as long. In fact, as long as the mileage is low and it was well cared for, you can get many years out of a used vehicle. You may even be able to further lower the overall cost of your vehicle purchase by trading in your older vehicle for additional credit toward your down payment. Have your current vehicle assessed to determine its value before you consider trading it in.
Shop Around
When shopping for a new vehicle, a best practice is to look at multiple dealerships to find the best car at the lowest price. Taking the time to shop around will give you a better idea of what you can expect when it comes to the bottom line price of your vehicle. It may even give you an advantage when it comes time to negotiate the final price with the dealerships, because the salesmen may work harder to obtain your busines. It’s never a bad idea to negotiate the sticker price of the vehicle, especially if you notice any flaws during your test drive. You may be able to save a few hundred dollars off the sticker price, which can lower your monthly payment by a few dollars.
Keep up with Maintenance
After you’ve made a decision on your purchase, you’ll want to make sure you keep your new vehicle in good working condition. That means making trips for regular maintenance and fixing issues as soon as you notice them. This can prevent more costly repairs down the road and keep your vehicle in top shape. Having your car serviced on a regular basis can also improve its overall gas mileage, which can save you some extra cash at the gas pump.
It’s easy to save money on your vehicle if you go into your purchase with a well thought out plan and some cash up front to help finance your purchase.
