09 Aug

Top 10 Tips for Saving Money on a New Car

When it’s time to invest in a new vehicle, you are definitely going to have to shell out some cash. However, you can easily lower the cost of getting a new car. What you’re looking to do is get the best car for the best value. The following ten tips will help you save money on the cost of the new vehicle:

1. Do your research. Let’s get the most obvious tip out of the way first since hopefully you already know it (but it’s worth reiterating). You need to take time to do some serious comparison shopping to make a smart choice about saving money on a new car. You want to choose a car that gets good gas mileage, doesn’t need to be repaired often, has a low repair cost when it does need to be fixed, retains its resale value well and still starts off at a good price. Finding this vehicle takes some time and a lot of research but it is well worth it when investing in something as costly as a new car.

2. Skip the in-car navigation system. The Car Connection recently pointed out that you can literally save thousands by choosing not to get an in-car navigation system. Although you may think that this is something that you need these days, it’s not true. For one thing, you can buy and install your own third-party system for a lot lower cost than the cost of getting one with your new vehicle. Plus it is increasingly common for people to use free or low-cost smartphone apps instead of in-car navigation systems. This perk costs you money and doesn’t retain its resale value so skip it if you want to get a new car at a lower cost.

3. Update your credit history. The amount that you pay for a new car varies depending on the loan that you are able to get for a car. You want to make sure that you qualify for a good loan by establishing a history of good credit and securing proof of employment. If you are currently unemployed or owe a lot of money to other places then you may want to hold off on getting a new car until you are in the position to get a better loan. Another option would be to save up the cash to buy the new car outright which would eliminate the cost of interest altogether. Note that one key tip to follow when you do get an auto loan is that you should be able to pay the loan off in 3 years or less. Pay as much down on the vehicle as you can and get the loan you need for as little as possible.

4. Buy your car straight from the seller. Sometimes you go to a car dealership and find out that the car that you want isn’t available on the lot. The car dealer will want your business so they will offer to relocate the car from another lot to the lot you’re on. This costs money and is generally an unnecessary expense. Unless you are getting a really amazing deal on a new car it is generally not worth it to pay for vehicle relocation costs between dealers.

5. Skip the extended warranty. The extended warranty is a fee that you pay to help cover the cost of repairs to the vehicle. However, extended warranties on vehicles as well as other products usually end up costing more than they are worth. They don’t always cover what needs to be covered especially as time goes on. The general warranty that the vehicle comes with should be the best choice for you.

6. Skip the extra details. There are cosmetic things that you can add to your vehicle such as paint striping and other detailing. It’s easy to get lured in to just adding those things now before you get the vehicle. However, these are not only unnecessary but cost more at the dealership than if you get it done on your own. If you feel like you must do this, do it somewhere else after you’ve bought the car. This same advice also goes for things like rust proofing and sound proofing your new vehicle.

7. Ask about manufacturer incentives. It is often the case that a manufacturer needs to get rid of certain models of vehicles more quickly than others. As a result, they will often offer cost incentives to people who are interested in those vehicles. It’s worth it to ask about these deals when shopping around for a new car.

8. Consider whether or not your vehicle is likely to get stolen. Some models of vehicles are more appealing to thieves than others. Before you sign on the dotted line to get a vehicle you should look into whether or not your car is at high risk for auto theft. Theft of your car can end up costing you a lot so it may be worth it to get a vehicle that poses less risk.

9. Make sure that you aren’t charged extra fees. Double-check your paperwork carefully when you are signing a loan for a new car. There are often fees included that you can get taken off of the cost of the vehicle. For example, dealers will sometimes add fees for their time and labor in getting the car ready for you. This is typically a negotiable cost and you should ask for the fee to be removed or reduced before you sign the deal. Try to negotiate as many points as possible on the list of charges before you agree to a final price.

10. Review rebates carefully. The government will sometimes offer rebates to people who are purchasing new vehicles. A common rebate is money back for people who are willing to invest in emerging green technology when buying a car. If you want to save money on your new car then you need to weigh the pros and cons of the rebate carefully. On the one hand, you’ll lower the total cost of buying the car. On the other hand, there may be quirks with new technology that make it pricier in the long run. Read all of the details of any rebate that you’re considering and make a well-thought-out decision about whether or not to get one.

Hey, seems you’re new here, you may want to subscribe to our RSS feed, so you will be the first to get our free money saving tips. New today, free Additions Direct Discount Codes. Get £25 off your first credit order of £60+. Also get special offers on your telephone calls from bt.com/deals. Thanks for visiting!