When you look back at your life, you are likely to take note of some life changing events. These include your high school graduation, getting married, having a child – and the purchase of your first car. A car is one of the largest purchases that you are likely to make, and if you are not careful, it can cost you for an extended period. Here are some tips that will help you get a great deal, and save.
The value of a new car will drop by at least 30% the moment that you drive it out of a showroom. You have an asset, but it is depreciating in value. If possible, save up and purchase the car in cash. This way you avoid interest payments. Choosing to purchase a car using a loan will lead to your paying a higher amount over the long term, and th
e car might depreciate at a rate faster than you can pay the loan.
Purchase a Used Car
With the right research, you can find a used car that is in excellent condition – and that is considerably cheaper than a brand new car. Find out the prices of used cars and compare them with those of new cars to make sure that you are getting a fair deal. Make sure that you also find out the history of the car through its Vehicle History Report, to make sure that the car has not been in any major accidents.
You could also look out for public auctions that are selling off repossessed cars. Purchasing a car at these auctions could land you a great deal, especially if the car is relatively new and was well taken care of.
Should you already have a car and you need an upgrade, rather than trying to sell the car, and then purchasing a new one, go back to your dealer and trade in for a newer model. You will pay much less for the newer car, save time and money trying to sell the older car, and you will also be able to negotiate until you get a deal that you are comfortable with.
When you purchase a car from a dealer, whether it is a used car or a new car, you are likely to pay some additional costs that will cover the dealer’s commission and operational expenses. You can save on these by choosing to buy a car directly from the owner. The best place to look for owners is online, in a variety of auction and shopping websites.
Meet the owner, get the car inspected and negotiate the price. You may even be able to pay in several interest free installments if you reach an agreement.
If you are armed with the right information, you will be able to make a thoughtful and financially sound decision when purchasing a car. Whether you opt for a new car, or a used one, use these tips and save on your asset.