Money Saving Tips to Keep In Mind When Buying a Car

Second only to buying a house, getting a car is one of the most important investments you’ll need to make during your entire lifetime. We spend so much of money on a car and most times this investment doesn’t pay off because long term we spend far more than we need to on add-ons, repairs, replacements etc. If you’re thinking of buying a new car and you want to save as much money as possible, here are some tips that will definitely come in useful.

Affordability

The process should always begin with setting yourself a budget. When you visit a dealership, a skilled salesman will be able to direct you to the most expensive choice, because that is his job after all. You’ll find yourself carried away with how the salesman talks about the car and how the car looks and before you know it you’ll be spending way more than you intended to. So remember, plan out a budget and stick to it.

The Best Price

To get the best price possible you’ve got to go to a dealership that values price transparency. Most of the times you can get this with more reputable brands, like for example Nissan Melbourne. Less reputable dealerships will have you negotiating tirelessly to bring the price down to something you’re comfortable with. Save yourself the trouble and go to a more recognized brand and don’t get carried away with unnecessary add-ons as well.

Payment Options

It’s always best to pay in cash when buying a car. This ensures that you don’t overspend because physically seeing yourself parting with hundreds of dollars doesn’t come easily. However we understand that this option might not be available to most so in that case you’ll have to take out a loan and lease the car. However, before you sign anywhere, make sure you understand the interest rates and how much you’ll have to pay back in total. Compare different rates from different places and make the best pick.

Extended Warranty

It’s always best to get extended warranty if you’re looking at new cars or certified pre-owned cars. This warranty can be thought of as an insurance- it will surely help you when handling costs of major repairs. However, this only applies to extended warranties handed out by the vehicle manufacturers themselves. Third party warranties may be worthless so be vigilant when it comes to this.

Car Insurance Companies

It’s important that you get quotes and check out different insurance companies so you can get the best coverage. Also understand the details of your coverage itself because if you get into an accident you don’t want to find out that your insurance plan didn’t offer you the coverage you thought you had. Finding the right insurance company will make sure you’re paying for the best insurance that covers all your needs.

The Old Car

If you want to make some additional money, it’s always better to sell your old car yourself rather than trade it in. You can make more of a profit this way.

Keep these money saving tips in mind when you’re hunting for your next car and you’ll definitely end up saving some cash in the long haul.

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