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Think buying a used car is the only way to save money on a new set of wheels? Don’t settle for second best! If you buy a new car, you don’t have to worry about all the accrued miles, the wear and tear on the engine, collision history, or any structural damage that might be cause for concern with a used vehicle. When you buy new, it’s yours hot off the press.
Buying a new vehicle is a big investment, but it doesn’t have to break the bank. Here are a few ways to save money when you’re buying a new car.
Make a Big Down Payment
Before you buy your car, try and save up some money so that you can make a larger down payment. When you make a large down payment, you’ll have to borrow less money, which means that you’ll ultimately pay less interest on your loan.
If you were buying a used vehicle, it would be much more likely that you’d be able to save up enough money to pay for the car in full. But remember the old saying, “you get what you pay for.” A cheap car you can pay cash for probably won’t last very long—so stick to a new one that will really give you the most bang for your buck. If you’re able to make a large down payment, you can save yourself quite a bit of money in the long run.
Get Financing First
Get preapproved for an auto loan before you buy a new car. Your car dealer can offer you financing, too, which is usually pretty convenient. But you might also pay a higher interest rate on dealer financing. To save the most money on your loan, get preapproved through a bank or credit union. These institutions can offer you the best-possible interest rate on your loan, which in turn will help you get a better idea of your final budget.
Visit Multiple Dealerships
Buying a new car can be as tedious as seeking out a new apartment or house. First, you’ll have to browse through listings online or in the local papers. Then, you’ll have to travel around town visiting different dealerships and trying out a variety of cars. It’s a tiring process, but it’s necessary if you’re going to find the best deal on a new vehicle.
Generally, a new vehicle is going to cost roughly the same no matter where you buy it. If you’re looking to buy an Audi, for example, you’ll pay roughly the same amount regardless of whether you’re buying one in Texas or Oregon. But if you’re trying to save as much money as possible, every dollar in savings counts. You’ll pay slightly more for a vehicle in a busy metropolitan area than if you were buying one in a more rural area. So, if you’re shopping for a new Audi in Dallas, you might instead want to find new Audi cars in Plano, a suburban city just to the North. Don’t be afraid to travel slightly out of your living area to find the best deals.
Compare Newest Model to Prior Models
When you’re shopping for a new car, be sure to check the differences between the very latest models and the prior year’s models. Most new car dealerships have a large selection of 2019 models, but they probably have 2018 models, too. The truth is, there are probably few differences between these models. Vehicle models are updated annually for economic reasons, not because there’s truly a significant amount of technology to upgrade. You’ll find that a 2018 model has many of the same features as a 2019 model, but that the 2018 model is slightly cheaper—meaning that’s your best bet for savings!
Trade-in Your Current Car
When you buy a new car, see if you can trade in your existing car at the dealership you’re buying from. When you trade in your car, you can offset a small portion of the price of the new car with the cash you receive. This can be an especially great option for growing families who need to swap out vehicles for a set of wheels that will accommodate the kids!
Don’t let anyone tell you that you can’t save a good deal of money when you’re buying a new car! Making a big down payment, getting pre-approved for a loan, visiting multiple dealerships, finding older models, and trading in your current car for a discount can all save you cash. Now, it’s time to drive off into the sunset!
Brendan Shelton says
My car is being worn down into the ground right now so I’m hoping to get something newer pretty soon. I love your idea of trading your car in or for cash to help with down payments on a new car. I’ll keep your article in mind as I make a plan to get something more reliable.