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How to Save Money When Buying a Car

Buying a car is often one of the largest investments that you will make in your lifetime. And many people feel that they simply cannot afford to buy a car as it seems to cost several thousands of dollars to buy even the most basic of vehicles. Luckily, no matter what your budget may be, you can find an affordable car that suits your needs, as you really don’t have to spend a fortune to get from A to B! There are several handy hacks that you can make the most of to save money when buying a car.

Related: What’s Your Best Get Out of Debt Mobile?

How to Save Money When Buying a Car

Want the best tips and tricks to save money when buying a car? Just read on and take notes. Then apply all the ones you like on your next vehicle purchase!

buy a new or used carPart Exchange Your Old Vehicle

One of the ways to cut a large percentage off your end bill when investing in a car involves trading in your old vehicle for a part exchange.

Part exchanging is the process of selling the car that you no longer need directly to the dealership from which you are purchasing your new vehicle.

This is such a simple process that cuts out a whole load of hassle, as you don’t have to go through the trouble of recycling or privately selling your old car which can add costs or considerable time onto your project.

Find a quality dealership that accepts part exchange, and take your old vehicle up to get a valuation! Keep this valuation in mind when you’re browsing around for new cars, as you can subtract this straight from the total price. 

(Note: If you don’t mind the hassle of selling the car yourself, you could likely earn even more money on it! Just be willing to clean it, let some interested people test-drive it, and be ready for negotiations. It’s really not that hard, but it true that it’s an additional hassle.)

Related: Buy a New or Used Car? Which Option is Best?

How to save money when buying a carConsider Used and Secondhand 

Far too many people have the wrong impression of used and secondhand cars. Unfortunately people often feel as though the vehicles are of a much lower standard in comparison to factory fresh alternatives.

However, this couldn’t be further from the truth!

There are hundreds of thousands of top quality, well cared for second hand cars that are being sold for as little as half the price of brand new models!

You can find used Mercedes Benz, BMW, Audi and many more reputable brands that are known for their reliability and performance, and you’re far more likely to encounter a bargain deal when viewing a car that’s had a previous owner.

It’s fair to say that any car will depreciate in value as soon as you drive it off the sales lot, so those who make the mistake of buying a brand new vehicle will soon realize that their car is worth half its original value in just a couple of years. Purchasing a car that’s been on the road for a while often cuts out the process of depreciation, as the value is based on the performance and quality of the car rather than its brand and age. 

Related: How to Get the Best Deal on a Used Car

Ask Friends and Neighbors

Cars are a hot commodity right now. They’re expensive and hard to find. That’s why you’ve got to spread the word to let people know that you’re looking. 

  • Co-workers
  • Neighbors
  • Family
  • Friends

Ask everyone – see if they’re looking to sell their car, or if someone they know is. And who knows? Maybe they were going to trade their vehicle in. Instead, they could sell it to you for $500 more, which means they’d earn more and you’d still buy the car for much less than if you bought from the dealership.

Related: 10 Reasons Why I’ll Always Buy a Used Car

For an Extreme Deal by Looking for Minor Flaws

If you want a deal, you’ll need to find something that others will discount and ignore.

  • Maybe there’s a small dent in it.
  • Perhaps it’s not the most popular color. 
  • Maybe it’s just dirty because the seller didn’t want to clean it up. No worries – you can clean it and make it look amazing!!

economic life of a carAlways Get It Checked Over By a Mechanic

You what can really help you save money when buying a car? Don’t buy a lemon!

Before buying a car, take it to a mechanic and get it all checked over. If they don’t find any major issues, you’ll have peace of mind that the car will likely be a good one for you. If they find many mechanical issues, just run away! If there are issues today, there will likely be even more issues tomorrow. 

Related: 21 Smart Ways to Save Money on Gas

Keep Your Highest Price in Mind and Stick to Your Guns

You know what your budget is for your next car. Don’t exceed that price! ie. Don’t fall in love with a car. There WILL be others, and they might even by better AND cheaper than the one you’re falling in love with right now!

Save Money When Buying a Car – What’s Your Favorite Tip?

If you want to save money when buying a car, try out the tips above. I bet you’ll be surprised how much money you can save!

Of all the tips to save money when buying a car, which is your favorite? Have you saved money with this tip before?

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AUTHOR Derek

My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.

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