Shopping For a New Or Used Car? 5 Tips That Will Save You Money

Buying a car, new or used, is a serious purchase.to be as persuasive to have you purchase something
Unfortunately, most people go to the car dealershipyou can't afford or don't want.
thinking they have to pay the full sticker price of theVisit several car dealerships to inspect the assorted
car, not realizing there are many ways to get morecar sales and take plenty of notes. Then return to the
bang for your buck. When you're trying to get yourcar dealership of your choice at the end of the month
best deal on your next vehicle, it's also important towhen dealers are eager to make a quick car sale.
know how the dealers make their money on each carChances are you'll get a great deal on a fantastic new
sale.or used car.
1) Find out the value of the car.4) Skip the extended warranty and extras.
Do your homework and research your car choicesYou don't need an extended warranty, though the
before attending a new car sale or purchasing a usedsalesman will make you worry and fret until you shell
car. You'll want to know the true value of the car youout the extra money to pay for the warranty. Most of
wish to buy as well as the value of your current car ifthe time, if you care for your car properly and maintain
you wish to trade it in.it according to the factory specifications you won't
Check out the car maker's website to research theneed an extended warranty.
factory list price for the model of car you're interestedIf you really think you should purchase one, wait as
in. For example, Ford's website (ford.com/) offers anlong as possible. Most companies allow you to wait
online vehicle showroom where you can choose youruntil you're close to the end of your regular warranty
next new car and pick the price range.to purchase one. By then you'll know how much
Go to several different dealers and research differentmaintenance your vehicle needs. If it's a lemon by
deals on the same car before purchasing it. A lot ofnature then an extended warranty might be a good
dealers' prices will differ on the same make and model.idea in the long run.
Check out the wealth of information on au whichYou don't need most of the extras offered, like
offers price comparisons on your new or used car asrust-proofing, paint protection, tinted windows and life
well as tips to help you when you purchase.insurance. Educate yourself about what you need and
The Red Book (redbookasiapacific.com/au/) is anwhat you don't to keep from paying unnecessary
excellent resource to see how much a used or newcharges.
car is worth. Car dealers make money by marking upVerify how much you're paying for hidden charges
the price, as do private sales. Knowing that a car issuch as shipping and preparation charges. Most of the
unfairly priced will help you to save hundreds, if nottime you can negotiate these charges down in your
thousands of dollars.car sale.
2) Get the proper financing.5) Consider Used vs. New
Car dealers can make a bundle of money selling youNew cars depreciate quickly the first two years of
more car than you can afford by offering youownership. In fact, expect your $20,000 new car to
financing for a longer period of time. You can alsocost you almost $7,000 in depreciation and interest
expect to pay more for lease options if you're notrates alone (with a 6.9% loan) during that time. When
careful. Banks and finance companies typically offer ayou buy a used car the original owner has already
lower interest rate than car dealerships. You can alsoabsorbed the depreciation costs, leaving you with a
look into financing from the manufacturer of the cargood car that's worth every penny.
for sale-you'll pay much less in interest than on a loanHowever, the car sale market may be so slow that
from the dealer.good deals can be had when buying a new car over a
Banks take longer to grant approval than financeused car. It's essential to be aware of how much car
companies, which can often approve your loan onlineyou can afford to buy and to guard against getting
in minutes.suckered into buying more car than you can afford.
Never pay for a new or used car on a credit card, asUsed Car Purchase Tips:
you'll be paying lots more in interest rates. One of theThe uncertainty about a cars history - whether it's
very best tactics is to get pre-approved for thebeen well taken care of or possibly damaged by an
purchase of a used or new car at a financing institutionaccident - can make some people leery about buying
before you go car shopping. When you're shopping,a used car. When buying used, it's important to look for
don't tell the car sales associate. A lot of times the cara car that has been properly maintained and an owner
dealer will cut the price of your car, thinking they'll makewho has the records to prove it.
money on the financing later. When they realize youWhen buying used consider forgoing the financing and
already have financing it will be too late to take backinstead buy outright. Car dealers tend to try to make
the deal on the price.money through the financing angle when selling a used
3) Buy at the right time of the month.car. Opting to pay for it in full puts money in your
Most car salesmen work on commission and getpocket.
incentives for selling the most cars. By the end of theDon't be afraid of high mileage. A car driven by
month they know if they need to up their sales andGrandma on weekends could actually have more
they'll be more persuasive and aggressive to get thatproblems because an idle car usually has problems
one last sale. However, you can use this need to sellassociated with sitting around, such as plugged lines or
to your advantage.rusty breaks. Consider spending the money to get a
Visit a car dealership at the beginning or first of thevehicle inspection from a reputable garage if you're
month for an initial visit, but not to buy. This takes someunsure about purchasing a used vehicle.
of the pressure off because the salesmen aren't going