Buying a car can be very expensive. After all, a car is a major purchase and is usually only second to buying a house in terms of how much it costs. This is why it’s very important to try to save money where possible.
Before you set out to find Waxahachie cars for sale you need to have a plan of action. Without a plan, you are likely to spend way too much on a new car. You also have to consider the costs of ownership so you can try to pick the right car that saves you money in the long run.
To help you do this we have put together this guide on how to save money when you are buying a new car.
1 – Pay in cash
Back in the old days, most people would pay for their car with cash. Getting loans was not nearly as common as it is now. In fact, it’s quite unusual to pay for a car using cash these days.
The main reason is that most people don’t have five figures of cash hanging around. Those that do have this kind of money saved up can see some significant savings when using it to buy their car instead of taking out a loan.
If you have some money saved and are able to use it to avoid taking out a loan then you may find a dealer that gives a special price to those paying in cash. Not all dealers do, though, so make sure to call around and ask if there is a discount for cash purchases. When you do find one then you can save on two fronts by paying cash.
The first is at the time of purchase by taking advantage of the cash discount that the dealer is offering. The more significant savings is gotten by not paying interest over the next five to seven years or however long the loan you took out is for.
The savings on interest alone is going to be well into the thousands so it is not an insignificant number.
2 – Avoid add ons
There are new cars that have many bells and whistles but are not always standard in the car. You’ll pay more for these if you have them added on or settle for the upgraded version of the car that you were looking for.
Very often, you don’t need or maybe even want some of these extra features. Look for base models that have the minimum of features and you will save quite a bit of money for what is essentially the same exact car as the upgraded one.
These features are usually for luxury or convenience. For instance, it might include heated and cooled seats. Or, they might try to sell you on a moonroof. There are loads of extras that will certainly tempt you but consider how necessary they are or if you will really ever use these features anyway.
This should also include any of the extras the dealer tries to sell you on when you are about to sign the purchase agreement. Don’t be tempted to add any type of extra payments for things like undercarriage coating or treatment for your upholstery in the interior. These offer no benefit and are designed solely to make more money for the dealer.
3 – Research ownership costs
The costs of a new car can continue long after you’ve bought it. Sure, there is a warranty that is going to help you keep repair costs to a minimum but there are plenty of other ways you can end up spending more on some cars than others over time.
It takes some research into the costs of some models that might interest you to find out if your purchase makes financial sense over the long term. For instance, you will still be paying for maintenance even with the warranty intact. Some models cost more for routine things like oil changes and replacing the tires.
There is also the insurance question as the cost of insuring a carvaries considerably across different makes and models. Before buying a car, call around and find some quotes for insurance to get an idea of how much the car you are interested in is going to cost.
There are many resources for doing this kind of research. Look into forums or even sites like Reddit and you are likely to find some owners of the car you are interested in that can give you some insight.
4 – Trade-in vs sell
If you already have a car then you can lower the costs of buying the new one by either trading it in or selling it in a private sale. Which one is better to do? It depends on a couple of factors.
The first factor is speed. How quickly do you want this process to take? Many people need to have a car at all times in which case, it makes sense to trade in your old car. When you sell a car, you will be without one for a few days in most scenarios. You may get lucky enough to sign the papers for sale on your old car the day you are able to drive a new car off of the lot, though it is unlikely. Trade-ins happen in a matter of minutes so you can drive your old car to the lot and leave with a new car.
If you do have the time to sell your old car and don’t mind a potential gap before you get your new one then selling your old car is almost always your best option. You’ll certainly get more money since dealers are not going to give you the full value of your old car.
There is no reason at all to assume that you can’t save money buying a new car. With these tips, you should be able to save thousands of dollars.