5 Tips to Save Money When Buying a Car

5 Tips to Save Money When Buying a Car

Buying a new car is one of the largest purchases most people make in their lives. Therefore, it is worth taking care and making sure the deal you get is the best possible. Over several months, relatively small changes to your spending habits can help you significantly accelerate your saving plan. Making these changes and using a budget app to keep better track of your expenses and saving will help you see progress toward your goal of buying a car, and will help you be able to do so faster.


Here are five tips for saving your money when you’re buying a new car:


  1. Car payment

If you don’t want a car loan at all, you need to think of ways to save your money and pay cash for your new car. But for those who can’t pay in full or who don’t mind a car payment, start by calculating how much you can afford to pay out each month. Make sure you leave some room for maintenance, such as oil changes or new tires, or any change in insurance costs.


  1. Insurance costs

A new car costs more to insure than the same model used. With new cars, you’ll pay more for collision and comprehensive parts of your insurance policy. Cars with lower theft rates and better safety records tend to keep insurance costs lower. But insurance costs vary according to other factors than make, model, and year.


  1. Budgeting for a car

There are countless things you can do to make it easier to pay for your car. If you plan on trading in, consider selling the car yourself and using that money toward the cost of the car. Selling directly often gets you more than you would with a trade-in. Using a budget app on your phone or computer can help you easily see progress toward your goal, and you can make progress faster by establishing better spending and saving habits.


  1. Saving money

You’re probably still making monthly repayments on your current car and thinking: how can I afford to save as well? But starting to save even a small amount now means you’ll be able to borrow a bit less next time, which will cut the repayments on your next car and then you’ll be able to afford to save a bit more, and so on.


  1. Verifying prices on the Internet

Smart buyers now use the Internet to buy new cars. Buying new cars online saves your precious time, money and effort at once. It’s very easier to buy cars, vans, SUV’s and wagons online. But, with a plethora of sites catering to online new car buying, it is imperative that you choose a website that lets you buy new cars from authorized dealers.


(Image credit: PicJumbo)

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