Saving on Automobiles

tips for saving money when buying an automobileLet’s face it – automobiles are expensive. However, you shouldn’t pay more than necessary when there are ways to buy for less. If you’re in the market for a new or used vehicle, read on to learn ways you can save.

Do Your Research

When shopping for a new or used automobile, there are certain things you need to know. First and foremost, check safety ratings on any car you’re considering purchasing. These can be found at sites like SaferCar.Gov. Another thing you should research before buying are incentives.

There are available incentives on the majority of vehicles sold by dealerships. To find out more about them, visit the website of the automobile manufacturer. An example of an incentive would be a rebate. Rebates can save you thousands off the sticker price, but you can’t take advantage of them if you’re not aware that they are available.

Also, read up on the car you’re considering to make sure it’s really the best choice for you. You may find there is another make and model that suits you better and costs less than the one you originally wanted. A good resource for automotive information for buyers is Kelley Blue Book (www.kbb.com)

Wait for Dealership Deals

Car dealerships have sales throughout the year that can net you big savings. If you can afford to wait, then do. The months of August through October are prime times to buy from a dealership because this is when they are clearing out the old to make room for the new. Can’t wait that long? Buy at the end of the month rather than the beginning. This is when the salespeople are most desperate to meet their sales quota – and are therefore more likely to offer money-saving deals to entice buyers.

Automobile dealers also have sales throughout the year on holidays like President’s Day and Labor Day, for example. Keep an eye on auto manufacturers’ websites to find out when these sales are taking place.

Get Your Financing First

You can save money when buying an automobile by getting pre-approved with a lender before shopping. Compare different financing plans from banks and credit unions to discover which is best for you. If you obtain your quotes within a 14-day period, they count as one inquiry and won’t have a detrimental effect on your credit rating.

Once you decide on a lender, they will usually give you between 30 and 60 days to make your purchase before the pre-approval expires. This gives you plenty of time to comparison shop at dealerships for the best price on the vehicle you want.

Don’t Be Afraid to Negotiate

From the moment you walk into a dealership, be ready to negotiate on everything. This includes not only the vehicle price, but things like trade-in value and incentive deals. A salesperson at a car dealership isn’t going to invite you to negotiate – they want to make the biggest commission possible.

So, try not to make it too obvious if you really want a particular automobile, and when you’re ready it’s important to speak up and get the negotiations started yourself. Not the negotiating type? Take someone with you who is better at it to help you handle the finer points of striking the best deal possible. Good Luck!