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How to make buying a car more affordable: When it comes to buying a car, there are so many different expenses to consider that it can often get overwhelming to even think about your budget for a car. From the initial expenses to interest rates and also running costs like insurance premiums, there are so many different things to think about and it can quickly become overwhelming.
So how can you navigate the process of buying a vehicle while still making it affordable? In this post, we’re going to share a few tips that can help you out. And why should you listen to me? I have spent my entire adult career working in personal finance (former financial advisor here!), and I used to sell advertising to car dealership owners.
How To Make Buying a Car More Affordable
Don’t complicate things at the dealership
Keep things simple when you enter the dealership. The last thing you want is to be sold a plethora of different add-on services that you don’t really need. Understand what it is you’re looking for in a car, decide on a budget, and stick to your guns. If you decide to buy something that is out of your price range or go for services that you don’t really need, then you may end up regretting it once you leave the dealership. In short, keep it simple. Don’t overcomplicate things and add more frustration to a process that is already quite complicated and daunting. Better yet, do all of your research before stepping foot in the door, so you know what your bottom line is.
Consider trading in your current vehicle
If you want to make your new vehicle purchase more affordable then we’d highly suggest trading in your current vehicle. Even your current used car value can help lower the price of your new vehicle by a substantial amount. Not only does this make your new car cheaper, but it also means that you don’t need to worry about selling your vehicle afterward because owning a second car can be very expensive. Pro tip: Don’t even talk to the dealership about your used car trade-in until you’ve negotiated the car you’re buying.
Get pre-approved for a loan
Getting pre-approved for a loan can help you get an idea of how much money you can actually spend on your new car. This can help you decide how much you’re willing to borrow and also if car financing deals are a better or worse value than going to a lender first. There are loads of financial options available to people who are interested in buying a car, so do a bit of shopping around and compare different options. Typically, financing at a dealership is far more expensive than going to a local credit union.
Should you negotiate at the dealership?
Some dealerships are fairly open to the idea of negotiating. If you’re accustomed to bargaining then you can always try to negotiate a better deal, such as lowering the price in exchange for skipping some services, or even adding extra services and getting a discount on the overall package.
Consider the running costs of a car
Remember that buying a car isn’t the end; you also need to think about the running costs of a car. Don’t overlook the importance of expenses such as taxes and insurance because they can quickly add up and put your vehicle outside of your affordable range. Don’t hesitate to look around for better deals on insurance premiums because you might find that buying a new vehicle is much more affordable than you first assumed.