Affording a new car isn`t always easy. You not only have to think about the monthly payments, but the down payment, taxes, fees, etc. Often times people don`t plan out their finances before heading into a dealership, and they end up getting a car they can`t really afford. Either that, or they walk away with nothing because they can`t afford any of the options provided. To keep this from happening, here are a few tips you can use to help you afford your next car.
Consider Used Options
One of the easiest ways to afford your next car is by exploring used options. You may want to get the newest car on the lot, but this much more expensive. Sometimes by getting a car that is even just one year older. And not only are used cars cheaper, but they lose their value more slowly.
According to this car dealership, RideOutNow.com, which provides in house finance in Houston TX, “They old saying that you lose 20% when you drive off the lot is true for brand new cars. Since used cars have that depreciation already embedded, they depreciate more slowly over time.” So, the next time you`re looking to get a new car, explore your used options as well and see what you can find.
Start Saving Early
Whether you get a new car or a used car, you`re going to need some money on hand to help you afford it. Rather than putting any sort of down payment, or the taxes and fees, on a credit card, it`s better if you have the cash available.
This is why it`s a good idea to start saving up for a new car early. By putting away a few extra dollars each month, you can have a nice sum saved up when it comes time to buy. This lets you avoid the interest rates on your credit card, taking out a larger loan, and can even help you lower your monthly payments.
Shop at the Right Time of Year
Car dealers have certain quotas that they need to meet. Most salespeople need to sell a certain number of cars each month, and each quarter. That means if you shop at the right time of the year, and find a salesperson that is behind on their quota, they may be willing to give you a more affordable deal.
If you can wait to get your new car, try to time your trip to the dealership to coincide with either the end of the month or the end of the quarter.
Another good time to shop is around the holidays. Car dealerships are always having sales around the holidays, so waiting a few weeks might be worth it. See if you can go car shopping around the major holidays, such as Christmas, Labor Day and July 4th.
Explore Your Financing Options
When you start talking to the salesperson about how you`ll pay for the car, they will likely talk to you about financing the car through them. Before you go this route, you should consider your other financing options. For instance, you can finance the car through your own bank.
Better yet, local credit unions will often offer you great interest rates on a new car. By talking to banks and credit unions before you go in, you have more bargaining power with the dealer. This is because you can either use your own financing, or ask for a discount in order to finance through the dealer.
Give the Car a Full Inspection
Unless you`re buying a brand-new car, you`ll want to give the car a full inspection before you buy it and look for any non-roadworthy signs. Buying a used car, and then having it fall apart after driving it 5 miles, will only end up costing you more money.
If you`re unable to inspect the car yourself, bring along someone who knows a decent amount about cars, or ask to bring the car to your mechanic. Another good thing to do is check online accident reports, through tools such as CarFax.
Try Different Dealers
Finally, don`t be afraid to say no and try another dealer. If you`re not in a rush to get a new car, you can have different dealers compete against one another for your business.
Get an offer from one dealer, then take it to another and see if they can beat it. Salespeople are eager to make a sale, especially if it beats out a competitor.
Don`t Spend More Than You Have To
Getting a new car isn`t always easy, but there are ways to make it easier. Hopefully with the tips above you`ll be able to save some money on your next car purchase, and get that car you`ve been after at a reasonable price. Good luck!