How to Save Money When Buying a Car

When it comes to financial investments, buying a car is the second largest you’ll ever make, aside from buying a house. Sadly, for the majority of us, buying a car is never a clear and easy process. Generally, people will walk into a car dealership, choose a car and eat up any price that they offer.

Did you know that 50 percent of people spend 30 minutes or less researching their new purchase?  What about the fact that only 20 percent of buyers will test drive a new car?

These two cardinal buying sins just show how uninformed the general public it comes to car buying. By following the below advice, we hope that you’ll save hundreds, if not thousands, the next time you pick up a new automobile.

1. Ask the question – do you really need a new car?

You may not need to buy a new car – no. So you need to ask yourself, do you really need the latest and greatest automobile on the market? And answer honestly. Cars, more often than not, will shed thousands from their ticket value the minute you drive out of the dealership; in just six months a new model might well lose half of its value altogether.

Financially, it might be worthwhile to consider the many used cars online, all of which can save you a fortune compared to buying new. While there’s nothing better than that new car smell, or off the assembly line look, in about 6 months it will blend with any other car on the road. Essentially, you’re paying over the odds for 6 months of freshness. Is it really worth it?

2. Don’t even bother haggling

While you might think you have the gift of the gab, and that it’s worth haggling with car dealers, most have seen the many tactics used a million times before. Sooner than you realize you’ll be sat in an office with a contract in front of you, for no more than 5 percent off the ticket price.

They might throw in a few added extras to cushion the blow, but they’ll be things you don’t need like an integrated sat-nav, or a Bluetooth speaker system. Honestly, with the advent of the internet, it’s too easy to buy online nowadays and bag a discount.

3. Make sure you test drive!

This should be the first thing you do with any potential car – it’s a great way to get a feel for the roads you’ll be driving on. Do this with a wide variety of models – competitor models as well – and you might find a car that’s much more comfortable to drive at a fraction of the price.

Take an Audi or Volkswagen for example – two mid-range models that can come, at times, with a hefty price tag. Then take their cheaper equivalents – SEAT or Skoda; you’ll be shocked to hear that they’re pretty much the same car beneath the exterior and so, if you’re not fussy on which brand you drive, you could save thousands and get the same driving experience.