How to Save Money When Purchasing a New Car
Buying a new car is an exciting experience and salespeople are trained to take advantage of your excitement. They will engage you in conversation about your family and life and try to learn things about you that will help them to push you into buying a more expensive model or more optional parts. Thus, it is very important for you to temper your excitement and remember the following tips, in order to save some real dough.
1. Educate Yourself
All manufacturers and most car dealerships have websites. Visit them and learn about what your options are. You may info about things like gas mileage or cargo capacity that could help you to eliminate some of your choices and better work your way toward the right car for you. The website should allow you to search by model or year to find what the dealer has in stock, and you will be able to look at pictures of the cars and get a list of the equipment, both standard and optional, that each has. Once you have settled on your choice, visit your local dealership and look through their inventory.
2. Virtually Build It
If you so desire, the manufacturer's site will allow you to virtually build a car. You can select everything from the model and the exterior color to the interior color and trim. Make sure that you are not forced to order any features that you don't want. If this is the case, find another manufacturer. When you have finished making your selections, the website will create a summary page with the list price of the car as you equipped it, so make sure that you're comfortable with this quote, as it'll likely be different than the sum of the components you ordered individually.
Most manufacturers' websites will allow you to calculate the monthly payments you'll be responsible for. You begin by entering your zip code, so that they can calculate the appropriate sales tax. Then, you need to choose between financing the purchase and leasing the vehicle. Leasing will allow for lower monthly payment, but at the end of the lease, you either return the car or you can purchase it for its residual value. Financing will have higher monthly payments, but at the end of the term, you will own the car outright. Consult your tax advisor to ensure you make the proper selection.
4. Comparison Shop
This is the single most important process for getting the best price. Start by looking online for any special offers from the manufacturer of your choice. Then, visit local dealers to see if they can match this. Go to at least three dealers, and let them know that you are going to be shopping for the best price. They will likely reduce their price a bit, but do NOT commit until you have shopped around fully. Get the salespeople to put down your offer in writing, and be in contact with them ASAP.
Gina Ford likes to write about saving money, personal finance & money-saving websites like www.lifeinsurancequotes.org.