Although purchasing a car is a pricey decision to make, there are plenty of things you can do to ensure that you aren’t breaking the bank in your new purchasing decision. In our first part of this series, we focused on some of the ways you can save money when you decide it’s time to buy a car, such as buying a used car instead of getting a new one, negotiating with the dealership and knowing when to walk away, and doing the right research to make sure you’re making the best decision for you and your family.
Here are a few more things that you can do to save money on your next car buying experience:
- Trade in your old car. If you have an old car, especially a clunker, you can trade it in for credit. In fact, you can put that trade-in credit toward purchasing a new car or even a down payment on your new car, depending on the dealership that you go to for your car.
- Keep in mind the entire cost. The initial purchase of your car isn’t the only money you’ll be spending on your car, so make sure you keep in the entire cost. This means consider the interest rates, any additional features, registration costs, and insurance. Once interest rates are factored into your loan price and you consider the monthly insurance rates, you might actually be spending more than you realized.
- Keep your head up. Though the search can be exhausting and you might start to lose patience, don’t let yourself get worn out over the process. Just don’t go into any car buying experience where you think you’re going to walk away that day with a purchase because otherwise you might get distressed or you could instead end up making a rash impulse buy that you come to regret down the line.
- Compare and contrast financing plans. In the same way that you’ll want to research different cars and different dealerships, you should also research the different financing plan options available to you. By doing so, you’ll be able to get the most competitive rates that works best for you.
- Look at the fine print. When you make any financial agreement, you’ll need to make sure you read the fine print, otherwise you could find yourself in a compromising or frustrating situation. For instance, some might have clauses where you could face a penalty for paying off your car sooner than expected.
