It’s only natural that so many of us would seek to save money when purchasing new vehicles. After all, when tens of thousands of dollars are at stake, there’s nothing wrong with taking measures to minimize one’s chances of buyer’s remorse.
Still, despite the burning desire many consumers have to save money on automobiles, we continually fall victim to a number of costly errors. In the interest of making your next car buying excursion a financially pain-free experience, take care to avoid the following mistakes.
Taking Out a Car Loan When You Don’t Need One
There’s little wonder as to why so many of us take out loans when it comes time to buy a new car. At the end of the day, many people lack robust savings, and without car loans, they’d never be able to replace their old vehicles. However, if you can comfortably afford to pay for a vehicle all in one go, doing so stands to save you a substantial sum of money.
For one thing, you won’t have to worry about paying interest on a loan you don’t need. Secondly, since many dealerships prefer to have cars paid off all at once instead of dealing with loans, you may find yourself eligible to receive special discounts. Spending such a significant amount of money may give you pause, but if doing so won’t leave your finances in disarray, paying off a car immediately can save you quite a bit in the long run.
Refusing to Buy Used Vehicles
On one hand, it’s easy to see why some car buyers are extremely hesitant to invest in pre-owned vehicles. Not only do pre-owned vehicles often get a bad rap in popular media, it seems like virtually everyone knows someone with a horror story about a less-than-dependable used car. On the other hand, many of us have had perfectly satisfactory experiences with pre-owned vehicles, and by taking a hardline stance against purchasing one, you may wind up spending far more on your next car than you actually need to.
Opening yourself to the idea of buying used will instantly expand your options. It’s also likely to increase the number of in-vehicle amenities you’re able to afford. Furthermore, since most used vehicles have already undergone the bulk of their depreciation, you can expect them to lose value at a slower rate than new cars. If peace of mind is what you seek, look for certified pre-owned vehicles that come with convenient manufacturer warranties. This will help ensure that a wide variety of problems are able to be repaired free of charge for the duration of the warranty.
Not Thinking About Fuel-Efficiency
Even if you pay your vehicle off immediately, you’ll technically continue paying for it for the duration of its lifespan. Car insurance payments, maintenance expenses and, of course, fuel costs are likely to put a small hole in your finances. Needless to say, the more driving you do, the more money you can expect to spend on tank fill-ups. So, if you intend to put your new car through its paces, it’s a good idea to take fuel-efficiency into consideration when pondering your decision. Additionally, car buyers who are interested in breaking away from fossil fuels should give some serious thought to Chevy’s new electric truck.
Assuming Salespeople Won’t Negotiate
If you have little to no car buying experience, you may simply assume that cars cost what they cost and there’s zero room for negotiation. While some dealerships are more amenable to haggling than others, you have absolutely nothing to lose by requesting a good deal on your next vehicle. Additionally, if you do some research into a car’s true value beforehand, you can provide yourself with an edge when it comes time to negotiate. Just make sure to enter negotiations from a place of politeness, as courtesy is far more likely to get you what you want than aggression.
Purchasing a new vehicle is not a transaction that should be approached lightly. Considering how much a dependable car costs, you’d do well to take advantage of every money-saving measure at your disposal. However, even if you walk into the dealership with the intent of maximizing savings, you’re liable to inadvertently wind up losing yourself money. To help ensure that you save as much as possible on your next vehicle purchase, steer clear of the missteps discussed above.