Buying a new car for less is easier than you might think. Often times, it's a matter of knowing when and how to shop for a new set of wheels. Most of us aren’t fortunate enough to pay cash for our cars. We have to get loans, maybe through a dealership or directly from a bank. And unfortunately, finance fees add to the cost of a car. But here are seven tips for buying a new car for less
1. Go Used
Buying a new car for less is often a matter of skipping a new model and going with a used one. Cars depreciate the moment we drive off the lot. However, if you buy a car that's one or two years old, you can get many of the latest features, but pay less for the vehicle.
2. Don’t Trade in Your Car
If you have an existing car, and you're thinking about trading it in – don't. The truth is, you can get more for the vehicle selling it yourself. Once you have a check in hand, use this money as down payment on your next vehicle purchase. This reduces the sale price of the car and ultimately your monthly payment.
3. Shop at the End of the Month
Salesmen typically have monthly goals, and some dealerships offer incentives to sales associates who sell the most vehicles. Therefore, many salesmen are willing to negotiate less for a car at the end of the month to hit quotas or goals. Use this to your advantage to find an excellent deal on the car and reduce how much you pay.
4. Shop at the End of the Year
Not only should you shop at the end of the month, shop at the end of the year – preferably December 31. Since dealerships need to unload old vehicles to make room for new ones, they usually offer amazing deals on the last day of the year. And since many people are preparing for New Year's parties, there might be less people shopping for automobiles on this day. The less customers, the more likely you'll get a great deal.
5. Private Party Sale
Dealerships want to make money, therefore they are usually unwilling to sell a car below a certain price point. However, some private party sellers are eager to unload a vehicle. Therefore, it might be easier to negotiate when you're buying a used car.
6. Do Your Homework
Getting a good deal on a car involves homework. It's important that you know the going price for vehicles, not just according to make and model, but also average prices in your local area. This can help you determine a reasonable price, and you can decide your maximum price point before negotiating with a salesperson.
7. Watch Your Credit Score
If you're financing a new or used car, keeping an eye on your credit score is another way to pay less. Based on your credit, a bank will determine the interest rate you pay for an auto loan. The higher your credit score, the lower your interest rate. And with a lower rate, you can anticipate a more affordable monthly payment.
Most of us need reliable transportation, but if we don't have a huge bank roll, applying for an auto loan is the only way to get a car. Cars are expensive, but these following tips can ensure you pay less for a car. What are other tips to pay less for a new or used car?