Save Money on Your Next Car

Save Money on Your Next Car

Today’s guest post is by Barney Whistance.

Buying a car is a big decision. There’s much to consider. You have to decide which make and model you would prefer to buy, how good its resale value is, how economical the car would be for you. As you are weighing all these pros and cons you are also planning your budget for the automobile. There is no denying that vehicles don’t come cheap. Therefore it’s necessary you make a choice that suits you perfectly.

 A car that will last you for more than 150,000 miles without giving you major maintenance headaches is a good investment.  How many miles do you drive in a year? Some drivers might hit 150,000 in a matter of 5 years, and some aren’t even to 100,000 after 10 years.  Cars vary widely in fuel efficiency, which is why you should prefer to have a cheap but stable option. There are many things to consider when deciding on a budget, your method of payment, and your car model and manufacturer. Here is what you need to do in order to get the best deal and get the most out of your next car or truck.

Bargaining on the Internet:

You can buy just about anything on the internet today: a holiday gift, a stationary set for your office, your groceries, and yes, even cars. The Internet can be a convenient way to get the best deal on your car. This is because most sales people on the internet are hired on a salary and earn bonuses on volume instead of commissions based on the sale prices. This means that these people will have the incentive to give you the best price to make a sale.

Bidding War:

When purchasing a car, have as many options available as possible. When you are selecting a car dealer, talk to every dealer in your area that sells your preferred make and model. Then ask them to pitch you their best deal. Make a point in telling the dealers that you have also received offers from other dealers. This might even get them to give you an even a better deal. The offer could be in your budget or over. But a lower offer does not mean that you take their offer at once; take some time to think about and then make your decision.

Right Timing:

Don’t always go for this year’s model.  Dealers are under pressure to clear their sales floors of last year’s stock.  Not only will you save thousands, but you will also have a better opportunity to get more consumer reviews and feedback on the car’s performance. Two to three months after the new models come out is when prices start to drop on the previous year’s models.

Trading In Your Car:

Lastly, keep your car for as long as possible. Don’t trade your automobile after only a few years. Cars are one of the fastest depreciating assets on the market. Their values decrease as soon as you drive your new car off the dealer’s lot to your house.  Reap maximum benefits by owning it for as long as possible. When the car starts giving you more trouble than you can afford, only then plan on selling it. Most times, you will get more for your old car when you sell it to an individual versus trading it in at the car dealer.

Having a new car is a luxury that not all can afford, so make the best use of it. Purchase it with proper research on the car models and the deals you are getting on it. Pay cash if you can!  If not, put as much money as you can as a down payment and finance the rest for the shortest period of time that you can reasonably afford.  Remember, it is a financial decision that you and your family will have to live with for some time.


Barney Whistance is an enthusiastic Finance and Economics blogger who is most interested in global economic climate. Apart from doing majors in Finance, he is also a Chartered Accountancy Student and planning to complete his Ph.D. in Finance before he turns 30.