Buying a car is expensive, which is why many people plan for their next vehicle. This gives you time to save money for the down payment, higher insurance premiums and other extras. Paying a large amount of money upfront will help lower your interest rates on the money financed and it may also lower your monthly payments. However, that’s just one way to save on your new car purchase.
Here are three more great ways to save money when buying a car:
1. Buy a certified pre-owned car. These vehicles are just a few years old and they often come with a limited warranty for peace of mind. In many cases, they’re equipped with all the same safety features you’ll find on a brand new one of the same make and model or at the very least, it will have most of them.
2. Don’t use your old car as a trade in. Sell it yourself instead. It may be easier to take the offer the dealer makes on your trade-in but a lot of times, you can get more for it if you sell it straight out. Use the Kelly Blue Book to determine the value of your used vehicle based on mileage and condition. This way, you know if the dealer’s offer is a good one or if you can do better selling it yourself.
3. When buying a new car, opt for the basic package. If you really have your heart set on buying a brand new car, you can save money on your purchase if you skip some of the extras such as rust and paint protection, chrome wheels, tented windows or even that Bluetooth package.
These tips can help you save money on your next car purchase so you can put that money to good use elsewhere. They might even make your dream car more affordable so you don’t have to settle for second best.