Everyone’s goal should be to save money when you can. From small, everyday purchases to the biggest ones. The more you save on the items you want, the more you have leftover for your emergency fund, or towards your retirement, or even just for those new shoes that you wanted to buy. Saving money is smart, but knowing how to save that money can be tricky, especially on large purchases like cars. That is why you should follow this guide to ensure that you get the best deal:
- What to Research
There are a few things that you should research before you go to the car dealership. Start by narrowing down the make and model of the car you are looking for, based on what you need, rather than what you want in a car. From there you should look up the manufacturer’s suggested retail price (MSRP), how to negotiate effectively for a car, and which dealerships are highly rated. Do your research beforehand, and you will have greater negotiating power and a clearer understanding of the process.
- The New Used Option from Dealerships
When you are at a dealership, you will have one of two options. You can either buy a new car, or a used one. Unless you have the money to spare, you should always choose a used car that is one or two years old. That is because vehicles have a high depreciation rate. This means that as soon as you buy a new car and drive it off the lot, it has already lost value and won’t be worth as much if you sold it the next day. Buy a barely used vehicle that is last year’s model, and you will save a lot for a great car.
- What to Save for the Down Payment
The best way to buy a car is to have the down payment ready. If you truly want to have an even greater negotiating standpoint, however, you should get a preapproved loan from Apply & Buy. Having a preapproved loan can help car salespeople to your ideal purchase point, and it can also ensure you have the best repayment plan for you.
- How Soon Should You Aim to Pay It All Back?
The sooner you pay off your loan, the better. Waiting too long or not putting a high enough deposit down can end up meaning that you will pay a lot more for the vehicle than it is worth, simply due to interest. Pay as much as you can upfront and pay it off as quickly as you can to save the most money.
Cars are a necessity. They provide you with the freedom to do what you want, and the ability to get you where you are going. Saving money by being smart about your purchase, and knowing how to negotiate for stronger purchasing power, can help you save a lot of money. That money can be used towards more personal things, or it could just give you that extra bit of breathing space you need to live more comfortably.