5 Money Saving Tips For Buying A New Or Used Car

a car, new or used, is a big expenditure.salesmen aren't going to be as persuasive to
Unfortunately, most people go to the carhave you purchase something you can't afford or
dealership thinking they have to pay the fulldon't want.
sticker price of the car, not realizing there areVisit several car dealerships to inspect the
many ways to save money. It's also important toassorted car sales and take plenty of notes. Then
know how the dealers make their money on eachreturn to the car dealership of your choice at the
car sale. Such knowledge will help you get theend of the month when dealers are eager to
very best price on your next vehicle.make a quick car sale. Chances are you'll get a
1) Find out the value of the car.great deal on a fantastic new or used car.
Do your homework and research your car4) Skip the extended warranty and extras.
choices before attending a new car sale orYou don't need an extended warranty, though the
purchasing a used car. You'll want to know thesalesman will make you worry and fret until you
true value of the car you wish to buy as well asshell out the extra money to pay for the
the value of your current car if you wish to tradewarranty. Most of the time, if you care for your
it in.car properly and maintain it according to the
Check out the car maker's website to researchfactory specifications you won't need an
the factory list price for the model of car you'reextended warranty.
interested in. For example, Ford's website ( offersIf you really think you should purchase one, wait
an online vehicle showroom where you canas long as possible. Most companies allow you to
choose your next new car and pick the pricewait until you're close to the end of your regular
range.warranty to purchase one. By then you'll know
Go to several different dealers and researchhow much maintenance your vehicle needs. If it's
different deals on the same car before purchasinga lemon by nature then an extended warranty
it. A lot of dealers' prices will differ on the samemight be a good idea in the long run.
make and model. Check out the wealth ofYou don't need most of the extras offered, like
information on which offers price comparisons onrust-proofing, paint protection, tinted windows and
your new or used car as well as tips to help youlife insurance. Educate yourself about what you
when you purchase.need and what you don't to keep from paying
The Red Book ( is an excellent resource to seeunnecessary charges.
how much a used or new car is worth. CarVerify how much you're paying for hidden
dealers make money by marking up the price, ascharges such as shipping and preparation charges.
do private sales. Knowing that a car is unfairlyMost of the time you can negotiate these
priced will help you to save hundreds, if notcharges down in your car sale.
thousands of dollars.5) Consider Used vs. New
2) Get the proper financing.New cars depreciate quickly the first two years
Car dealers can make a bundle of money sellingof ownership. In fact, expect your $20,000 new
you more car than you can afford by offeringcar to cost you almost $7,000 in depreciation and
you financing for a longer period of time. You caninterest rates alone (with a 6.9% loan) during that
also expect to pay more for lease options iftime. When you buy a used car the original owner
you're not careful. Banks and finance companieshas already absorbed the depreciation costs,
typically offer a lower interest rate than carleaving you with a good car that's worth every
dealerships. You can also look into financing frompenny.
the manufacturer of the car for saleyou'll payHowever, the car sale market may be so slow
much less in interest than on a loan from thethat good deals can be had when buying a new
dealer.car over a used car. The important thing is to
Banks take longer to grant approval than financeknow how much you can afford to pay and
companies, which can often approve your loanmake sure you don't get suckered into buying
online in minutes.more car than you can afford.
Never pay for a new or used car on a creditUsed Car Purchase Tips:
card, as you'll be paying lots more in interestThe uncertainty about a cars history--whether it's
rates. One of the very best tactics is to getbeen well taken care of or possibly damaged by
pre-approved for the purchase of a used or newan accident--can make some people leery about
car at a financing institution before you go carbuying a used car. When buying used, it's
shopping. When you're shopping, don't tell the carimportant to look for a car that has been
sales associate. A lot of times the car dealer willproperly maintained and an owner who has the
cut the price of your car, thinking they'll makerecords to prove it.
money on the financing later. It will be too late toWhen buying used consider forgoing the financing
change the price on the car once they realize youand instead buy outright. Financing is a way car
already having financing.dealers to make money off of used car sales.
3) Buy at the right time of the month.Opting to pay for it in full puts money in your
Most car salesmen work on commission and getpocket.
incentives for selling the most cars. By the end ofDon't be afraid of high mileage. A car driven by
the month they know if they need to up theirGrandma on weekends could actually have more
sales and they'll be more persuasive andproblems because an idle car usually has problems
aggressive to get that one last sale. However,associated with sitting around, such as plugged
you can use this need to sell to your advantage.lines or rusty breaks. Consider spending the
Visit a car dealership at the beginning or first ofmoney to get a vehicle inspection from a
the month for an initial visit, but not to buy. Thisreputable garage if you're unsure about purchasing
takes some of the pressure off because thea used vehicle.