The average American household owes more than $16,000 in credit card debt. If you’ve been looking to buy a car recently, you know how difficult it can be to save money for a downpayment and monthly payments. However, there are some ways that you can save money on your next purchase without feeling the pinch.
By following these five hacks for saving money when car shopping, you will see how simple it is.
1. Save for a Better Down Payment
Down payment is the first expense you’ll need to pay. You can save money for a down payment by setting up an automatic monthly deduction from your checking account to your savings account. For example, if you want to put down $4,000 on your next purchase, set up that amount to be automatically deducted each month.
Doing this will avoid the temptation to withdraw it for a splurge. This will also help ensure that you have enough money in savings to cover the down payment if something happens where you need it. You may experience a slight delay in your savings goals, but think about all of the money you’re saving by not having to pay interest each month.
2. Shop Around
Shopping around for your next car is the best way to save money on purchasing, although this can be tedious and time-consuming. You should know how you plan to use your new car before shopping around, and what you can afford to pay each month. It would help if you also planned to visit several dealerships and talk to several salespeople before making your final purchase.
This can be time-consuming, but it’s worth the effort. This makes it more likely to find a good deal on the car you want. For example, you may find that one dealership is willing to offer you a better deal than another for the same car. You can even shop online and have the car shipped to you. Check out this car shipping calculator that will help you see if it’s worth it to buy online.
3. Negotiate Price
You can save money on your purchase by negotiating the price with the dealership or salesperson. It would help if you didn’t accept their first offer or walk away without talking about the price. If you feel that you are getting the runaround, go back a few times, and you will probably find a price that works for you. If you can’t, try to pick another dealership.
Negotiating also helps you feel like you have some control over the situation and don’t merely agree to their terms.
4. Don’t Be Afraid to Walk Away
There’s only one way to get the best deal on your next purchase: walk away from the table if you aren’t getting the price you want. You don’t have to buy your next vehicle; they are a dime a dozen. If you feel it’s taking too long or the salesperson isn’t giving you what you want, walk away and look at other dealerships before making another offer.
Walking away can be a strong negotiation tactic, but you should only use this as a last resort. If the dealer knows that you will walk away from the table without a deal, they will be more inclined to give you what you want.
5. Set a Budget and Stick to It
Budgeting is essential when buying a car. You should know how much you can afford to pay each month and your total expenses. Set these budgets early on before shopping around to avoid getting sucked into spending more than what you can afford. For example, if you can only afford to pay $300 a month, you shouldn’t talk to dealerships that charge you more.
Set up budget sheets for your next purchase so that it’s easier to stick to your available amount. It would help if you also thought about setting aside money each month so that you’ll have enough for the down payment after you do your calculations.
If you follow these five tips, you will save money when car shopping without feeling the pinch too much on your next purchase. By planning and knowing what you can afford, you’ll be able to enjoy your new car without going into debt or sacrificing too much to get it. These tips will also help you avoid the emotional trap of getting a bad deal on a new car because you feel that you have to have it right now.