Buying a new car can be a daunting prospect, especially for first-time owners. Mastery comes with experience and it can be hard to navigate the complex world of car sales without a guide. This is why today's article will try to answer all your possible doubts straightforwardly.
Every cent you save is worth the effort, and when it comes to more expensive purchases like cars deals and discounts add up considerably. So today we'll be taking a look at all the steps you should be taking on your end to make sure you can make the most out of your money and save on any upcoming car purchase.
Research First
The first step of making any purchase should always be to research extensively, and that of course applies to cars. The first thing you need to do is to know the official list price for your car and check as many dealerships stocking it as possible. While car prices on average shouldn't vary that much from retailer to retailer it's still important to compare and contrast prices. If you are paying in monthly installments then it's also important to check what payment plans they offer, as there might be a considerable price difference based on their fees.
The internet considerably changed the landscape for vehicle owners and that means that you can easily browse through hundreds of reputable listings from the comfort of your home and begin forming a baseline of what you'll likely be paying for your new car. Of course, buying in person has its perks too, and it's always possible to get a deal from a salesperson, so keep a calm demeanor and don't jump into the first offer if you do decide to negotiate in person.
Payment options
At the end of the day, the way you choose to pay will play the largest role when it comes to saving money, and when it comes to it nothing beats paying upfront and in cash. The simple fact is that any loan or lease arrangement will include interest rates and additional fees, which means that you'll be objectively paying more than the intended list price. On top of that many dealers will offer unique discounts and incentives for paying in cash, so if you have enough money saved to buy at full price you should never look into monthly payment models.
Of course, the fact is that not everybody can afford to purchase a new car upfront, so in that case which is the best payment option to save money? When people look at new cars the two main options to consider are a car lease or a car loan, but it's important to understand the key differences between both of them.
A car lease is an arrangement to drive a vehicle, not to own it, and while it is possible to buy the car after the lease is over this isn't included in the monthly fees. Meanwhile, a car loan is always centered around the purchase, so once you are done with the payments the car is completely yours. What this means is that while a lease might seem cheaper at first, if you plan to purchase the vehicle at the end of the term then it's better to go for a car loan instead.