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Shopping for a new vehicle is an exciting project. By doing a little legwork, you could save a ton of money in the long run. If you’re looking to get the best deal possible, we’ve got a few suggestions. These are a couple of them.
Shop Online to Find the Best Deal
First and foremost, don’t stick to local dealerships. Often, they’ll charge more than what you could’ve found by looking around online. Online car buying in Canada has helped a ton of shoppers save on their final purchase.
Many cars change value depending on their location, so you should look around. Some areas seem to value particular models more than others. By doing a little research, you could save 15% or more off your final purchase price. The more places you look, the deal you’ll be likely to find.
Compare Different Financing Options
Another way to save a lot of money on a vehicle purchase would be to compare financing options. Just because the sticker price says it’ll cost a certain amount doesn’t mean that’s what you’ll pay. Choosing a loan with a punitive interest rate might cause you to pay more than double the sticker price.
Or, you could find a loan with much better terms, saving you a ton. Look at more than just the monthly payment, though. Often, lower monthly payments hide the interest rates behind attractive numbers. Don’t forget to look at the length of the loan, either. Longer loans offer lower monthly payments, but you might pay a lot more overall.
Consider Buying a Used Vehicle
A lot of people love looking at new vehicles, but they’re not always the best deal. Newer vehicles do have the benefit of a manufacturer’s warranty. However, older cars tend to cost much less. Some of them even have a warranty available through the dealership, too.
By purchasing a used car, you could spend 20% less on your auto purchase. Not all used cars are great deals, though. Some of them are in high demand, driving up the price. Compare what you’d pay by purchasing something new or used. Then, make an informed decision about what would make the most sense in the end.
Negotiate on the Final Sales Price
Once you’ve found a good deal, don’t be afraid to negotiate on the price. Dealerships will often cut you a little slack, especially toward the end of the month. They’ve got a quota they’d like to hit. So, they’ll help some of their customers out in order to hit their numbers. Simply asking if they’d be willing to move on price could save you a ton of money. You won’t know how they’ll respond unless you do.
Trade Your Old Car for Sales Credit
Of course, trading your car could help you come up with a downpayment. Even a high-mileage vehicle could be worth a lot as a trade-in. Unless you’ve got plans for it, you should at least ask them to give you a trade quote.
Sometimes, you might be able to afford an even nicer car by trading in your old one. The best thing about trading would be getting rid of something without a purpose. If you’re not planning to use it anyway, then what’s the point of holding onto it?
Ask About Any Discounts for Cash Payments
Not all dealerships offer discounts for paying everything in cash. However, a lot of them might be more willing to negotiate. When you’re buying with a loan, you’ve got to clear the financing process as well. But, by paying in cash, they’ll know they’ve got a guaranteed customer. Just let them know you’d be willing to close the deal today if they’ll give you a cash discount. It could shave up to 10% off the total at the end.
Getting the Best Deal When Buying a Car
Finding a good deal when you’re buying a car could help you minimize your monthly payments. It could even make it possible to buy a car without financing. You’ve just got to do a little work upfront to find the best deal. But, it’s always worth the effort.
Author Bio
Lizzie Howard is a Colorado native who after graduating from the University of Colorado spends her time as a freelance writer. When Lizzie isn’t writing, she enjoys going on hikes, baking for her friends and family, and spending time with her beloved yellow lab, Sparky.