Monday, March 26, 2012

10 Ways To Save Money On Your Car


The best way to get ahead financially is to continue to widen the gap between your expenses and your income. Retirement really is as simple as having a constant stream of passive income that outweighs your expenses.

In our current economic climate, many consumers are deleveraging and cutting expenses in order to bring more financial breathing room, and this is a great move. If you are in the market to buy a new car,or even if you already have an auto loan, these 10 tips may help you reduce your monthly car payment.

Patience Is A Virtue

Make sure you get your finances in order as best you can so that you are pressured into making a deal quick. Many of the steps we outline here are going to require patience and slow movement. If you can remain patient and wait for the best deal, it will probably result in savings lots of money.

No Trade-Ins

A dealership is always going to give you a bad deal on your trade-in. That is the plain and simple truth. Therefore, sell your car yourself. Craigslist is fantastic as are other online marketplaces.

A dealership is always going to get the best deal, so be patient and go the trade-in route. This will lead to a bigger down payment on the new car, which will result in a lower monthly payment.

Negotiating Power Is On Your Side

The economy has hit car dealerships especially hard. If you have good credit and a strong down payment, the negotiating power is definitely on your side. Don’t be fooled by an intimidating salesperson. They are desperate to sell a car, and they will give you a great deal.

Shop Around

Make sure to check with at least 3-5 dealerships, and let the salespeople know that you are looking around. They will offer you a more competitive offer up front.

Auto Refinancing

If you already have an auto loan, interest rates are at record lows right now. By refinancing a car loan, you could save hundreds, or even thousands, of dollars over the life of your loan.

Negotiate Terms

Back to the negotiation point, be a stickler on the terms. Get every bell and whistle you can.

Cash Is King

Remember cash is king. If you walk into a dealership with a sizeable amount of cash for the down payment, you will be taken much more serious and be able to negotiate more favorable terms, which will eventually lead to a lower monthly payment.

Scour Craigslist For Cash Deals

If you have enough to pay for your vehicle in cash, check Craigslist every day. You would be amazed what people are willing to do in this economic climate when cash is waived in front of their face. It is not uncommon to be able to save ten thousand dollars or more on nice vehicles when you show up in
someone’s driveway with an envelope full of cash.

Carfax

Make sure to run history on any car you purchase. This may cost a bit of money upfront, but it could
save you thousands of dollars in repairs in the future.

The Mechanic Checkup

Similar to the last point, always get your car checked out by a mechanic before you hand over any cash.
This may cost a bit upfront, but it will save you big time in the future.

Remember, it is a buyer’s market out there. Use that to your advantage to source and negotiate the
best deal possible.

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