Recent new car sales numbers have shown the auto industry is in a rebound. Even with the recession still hitting many people hard it seems some people still need to buy new cars. The rise in consumer confidence may have triggered this growth in new car sales, which is good sign for the economy.
It is important to remember that when purchasing a car one’s own financial situation remain the most important consideration. Even if you are able to buy a brand new vehicle, it is important to be frugal and strive to strike the best possible deal whatever your financial situation.
Saving Money on your New Car Purchase: 3 Tips for Success
With this in mind, what practical steps can you take to shop frugally and make an affordable new car purchase? Consider the following: –
- Choose your Buying Resources Wisely: If you are motivated by finding an affordable new car, then dealerships should not be your source of information. Instead, you should visit online resources such as Exchange and Mart or Consumer Reports to access a wide range of vehicle information across a range of brands. In addition to this, it is also easy for you to offer your existing car as a trade-in on the new model, which can drastically reduce the cost on your new car purchase. Keep in mind dealerships make my money on used cars than new cars so be careful how they structural the deals.
- Pay Attention to Financing Plans and Agreements: When buying a brand new car, the majority of consumers are forced to pay with a fixed financing agreement which may not be their best financial choice. While this spreads the cost of the car over an agreed period of time, you need to be able to commit to making regular payments. Failure to do this will trigger late payment fees and headaches. You should find a good car loan rate through a local bank or credit union. In addition to this, be sure to read the financing terms in full and review these carefully to make sure there are no hidden catches that will come back to bite you later.
- Choose a Medium or Low Trim model for you New Car: There are numerous Trim levels on certain car models, which cater towards a range of budgets and expectations. While each Trim is going to offer different features, there won't be that much difference in the overall car. Buying a car with all the “bell and whistles” won't necessarily keep the value if the car or automaker doesn't have a good reliability rating and depreciation outlook. It's best to choose a lower Trim model and pay a little more fore certain features you want without going over you budget on a car that is not that different.