Purchasing a vehicle is a big decision. Not only are you going to be spending a decent amount of money on this investment, but you’re also going to likely have to live with this decision for quite a bit of time. For this reason, it’s crucial that you go about acquiring a vehicle in the best way. To help you make the smartest financial choices when purchasing a vehicle, here are three tips for saving money and getting the right fit for your lifestyle and budget.
Save For a Down Payment
Saving enough money for a decent down payment will make purchasing your vehicle a lot easier. According to Trent Hamm of TheSimpleDollar.com, the amount of money you should save for a down payment on a vehicle purchase will depend on variables like your credit score and the type of car you’re planning to buy. However, it’s generally a good rule of thumb to save at least 20 percent of the overall price as your down payment. This will give you the freedom to feel confident in negotiations and not owe more on your vehicle than it’s actually worth starting out.
Buy Used Rather Than New
Another great way to save yourself some money when purchasing a vehicle is to buy a used car rather than a brand new car. Not only will this give you a lower overall purchase price, but there are plenty of other benefits as well.
According to Russ Heaps of BankRate.com, buying a used car will help to minimize the depreciation while also lowering your insurance costs and other fees. Pre-owned vehicles are one of the best ways to get the most for your money. And with the way in which cars are made now, you can still be safe in a vehicle for years after its model year. Take your time searching for used cars for sale in your area to find the perfect match for you.
Do Your Research for Negotiations
Once you’ve got everything in order for buying a vehicle, the last thing to tackle is the negotiation process. By being prepared before you meet with dealers or sellers, you’ll have a better chance of getting the vehicle for the price you want.
According to Consumer Reports, one of the best things you can do when preparing for car buying negotiations is to research the fair value of the car and know what others are paying for it or selling it for in your area. This will give you a good idea about what you should expect to pay. This knowledge will also help you hold your ground if and when the seller tries to strong-arm you into spending more than you want or more than you should.
By using the car buying tips mentioned above, you should feel confident in your ability to make a vehicle purchase that will be a sound financial investment for you. Consider saving for a down payment, buying used, and doing a lot of research the next time you’re in the market for a new vehicle.