Tips to save money when buying a new car

Image: www.freedigitalphotos.net

Going to the dealership can be intimidating, but as long as you have done some good research and are prepared to stand your ground with the salesperson about what exactly it is that you want, you could walk away with an amazing deal. Remember: preparation is key!

Here are 7 more tips to make your buying experience a little more pleasant and successful:

1. Set a budget - And stick to it! Consider what you can realistically afford to pay in monthly instalments based on the calculations you make using a finance calculator. This will show you how much you will need to pay per month based on the overall price of the car you will be buying, as well as any rebates or other costs. Keep in mind that you will need to cater for extra costs that might be included in the overall price such as the rebate or even the monthly insurance premium. All these things add up to the total amount you will really be paying for the car per month.

2. Do the research - No matter how much time you think you'll be "wasting", research is well worth it. Find out what types of cars are available that fit within the budget you have allocated, and then go to the showrooms to investigate further. Once you get to the showroom look at the options you were investigating online, but also take a look at the other offers on the floor to see whether there are better deals available. Before you walk into the showroom, make sure you have a clear idea about the type and size of car you are looking for and what types of functions it should be able to perform. If you have kids, consider whether the car will be big enough for all their extracurricular equipment as well as any car seats that may be required. There are particular car selling-and-buying websites that offer useful car model comparison tools. Such websites allow you to compare different cars side-by-side and allow you to even compare insurance packages.

3. Consider timing - Often at the end of the month you will be able to get a better price because sales people have quotas to reach. If a salesperson has not yet met their quota for the month, they will be more flexible in decreasing the price in order to make the sale.

4. Before making an offer on any car, phone an agent from your insurance company. Find out what the possible premium will be on the car you are interested in before you make an offer or put the money down. Remember costs add up, so a model of the same car that you are looking at with just a couple less bells and whistles could significantly lower your premium.

5. Think long-term. Try to negotiate a service or maintenance plan to be included in the final price. This will help you save money in the long run with things like free oil changes or discounts on services and maintenance for a couple of months, or even years to come.

6. Talk trade-ins afterwards. Only after you have set the price for the new vehicle should you bring up the topic of trading in your old vehicle. If you bring it up too early, the sales person could pull the wool over your eyes and you could unknowingly end up paying more than you normally would without the trade-in.

7. Don't give in to peer pressure, especially not from sales people trying to sell you those extra features that you might not want or even need. Walk in to the dealership knowing the features you'd like to have, those you don't need, as well as the features that are non-negotiable. This will make the decision-making process easier, and will help you stand your ground with pushy sales people.
   

All the points mentioned above will help you to get the best deal you possibly can from the new car dealer. Always keep in mind that there are options, and that it is better to take your time to shop around properly rather than make a hasty decision that could easily be regretted. For further information on how to make the best of your buying experience, search on leading local websites.

Resources:
Bank Rate
Forbes
AutoTrader