By David Treehouse
If you are in the market to buy a new car, there are a number of things that you can do to reduce the price that you ultimately end up paying for the purchase. Getting a better price when you are shopping for a new auto isn’t difficult, but it does require you to take a bit of time to prepare instead of just heading into a dealership without a plan. By taking a few simple steps to prepare ahead of time, you should be able to significantly reduce the amount that you pay for a new car. It always pays to be prepared, and the more organized you are upfront, the less you’ll likely end up paying in the long run. Here are a few ways that you can save money when you are ready to purchase a new car.
Be sure to take the time to compare prices. The exact same car model and make can be significantly different at one dealership compared to another. The Internet provides a great opportunity for you to find out what the true cost of the car is. Take the time to do your research so you know what a car should cost, not just what the retail price is. When you know what it cost for the dealer to receive the car, you’re in a much better position to negotiate a good price for that automobile.
Compare Car Loans
If you don’t have the money to pay for the car in cash, then you’re going to have to get a car loan. Do not rely on the car dealership to provide you with this loan as this will be the most expensive way to get it. Instead, visit a local bank or credit union and get pre approved for a car loan. You can also search online for loans. This will give you a much better interest rate on the loan which can save you hundreds, or even thousands, of dollars over the lifetime of the car loan.
Shop During Dead Times
When you go to shop for a car, choose a day when you know that there will be very few customers at the car dealership. Pick a day when the weather is terrible, or at the time of the year when most people are doing other things than spending time in a dealer’s showroom. It’s a bonus if you can do this toward the end of the month. When there are very few customers, and it gets towards the end of the month, car salesmen are much more motivated to deal with you on the price of the car because there aren’t a lot of alternative people for them to sell to. The end of the month is a great time to shop because this is when car salesmen are trying to make their numbers to receive bonuses.
Buy Only What You Need
One of the best things that you can do to reduce the price of a new car is to buy only what you need. A car is a depreciating asset, which means that it decreases in value over time. You never want to invest more money into a depreciating asset than you have to. That means that you should look at your purchase as a way to get you from one place to another, rather than a luxury item. The less upgrade options that you get on the car, the less that is going to cost you. You should buy what you need, but never anything above that.
By taking a little time to do some basics before you go out to purchase car, you can end up saving yourself a lot of money in the long run. Be sure to do your research, take the time to find a car that is right for you, and have a loan already pre approved to make sure that you don’t pay more than you have to when you purchase your next car.