Top 5 Tips for Saving Money When Buying a Car

Are you looking to buy a nice, shiny new car?

Buying a new car can be extremely exciting. However, sometimes when you see the price tag, it can feel a little daunting.

Luckily, there are ways you can save some serious money when buying a new car. And don’t worry, we don’t mean buying a clunker from a shady used car salesman off the back of the lot.

There are ways you can save money and still get the car of your dreams. Read on to learn how it’s done with these five tips.

1. Get Pre-approved for a Loan

Negotiating with the car salesman plays a big role in the final price you pay for your car. 

One way to make the negotiating a lot easier is to get pre-approved for a loan. You can either visit your bank, or scour online to see what type of terms and rates you qualify for. If you don’t already know your credit score, now is the time to find out.

Coming in armed with your credit-worthiness as well as knowledge about what types of loans you qualify for will give you a lot more power when trying to negotiate a lower price.

After all, you can’t judge how good of an offer they’re making without first knowing how much you deserve!

2. Research Incentives Beforehand

Did you know that auto manufacturers actually give dealerships rebates on certain types of cars?

This is often referred to as an MSRP, and you will likely see these deals advertised either on TV, the internet, or in the paper.

Before visiting a dealership, search the web and check out the manufacturer’s website. Some incentives stay completely off the radar and are not advertised at all, so don’t be afraid to ask as well.

3. What’s Your Status?

Military status, that is.

Car dealerships often love supporting the military, so if you or your spouse is an active-duty member or a veteran, then you may be eligible for a discount or for some cash back. Sometimes, this can be up to $1000.

You can call the dealership you’re interested in beforehand, or check online.

Military members aren’t the only ones who should be looking out for discounts. Oftentimes, dealerships will give discounts to students as well. Make sure to bring your student ID. Also, make sure to read the fine print on this one, as sometimes you’ll need a good credit score or proof of income.

4. Keep it Basic

It can be easy to let the car salesman swoon you into getting a car with all the bells and whistles, but you need to fight this temptation.

A fancy Bluetooth package may seem awesome while test driving, but there’s a good chance this added feature will soon become obsolete.

Cars with high-tech features often have lower resale values, so you’re hurting yourself twice as much by purchasing one. It’s important to remember that buying a car comes with a lot more than the initial price tag, as there’s also maintenance, insurance, etc. You can learn more about this by reading this Driving Guide.

5. Fight for a Lower Interest Rate

Often times, it isn’t the price tag itself that is expensive, but the interest rate.

So, don’t forget that this is on the table for negotiating as well. This is especially true if you have good credit. If you’re paying 5 percent or more, that’s too much! Don’t be afraid to ask them to mark off a point or two.

With these five money-saving tips, you should be rolling away with a sweet ride and some leftover money in your pocket!