Buying a car is your second largest expense after a house. With this, it is important that you assess your financial status before committing. If you are looking for best bang for your buck, it is time that you consider a used car. Used cars are practical because it means letting someone else take the biggest depreciation hit.
To help you buy with confidence and peace of mind, here’s how to save on your next car purchase:
Make a budget
As with anything else, you should first make a budget to evaluate how much you can afford. This is the standard process whether it is your first car or your sixth car. Ideally, you should spend less on your car purchase so there will be more money left for other things.
Keep in mind that your car is not an investment. Once you decided to buy a used or leased car, remember that a salesman will often steer you to the most expensive options. Although it is emotionally thrilling to get the best, always stick to your number so you are not left with buyer’s remorse after overspending.
Pick a car at least a year old
If you are really serious about saving money on your next purchase, you should at least pick a car that is at least a year old. This is to make most of the depreciation. Bear in mind that a new car depreciates in value by 11% after driving it off the lot. If you just wait for a little while, used cars in montclair will be worth 25% less after a year.
Learn how to haggle
It is time that you put your haggling skills to the test. Haggling is important if you want to level up your negotiation skills. One way you can haggle is to drop hints that you are looking at nearby competitors. By doing this, you are pitting the sellers against each other.
In the end, you will surely get the best car for the best price. Do not just dive right into the first offer. Remember that you can still do something about that sticker price. Your goal here is to make an offer that you are comfortable paying. Many seasoned car buyers recommend that you start offering 10-15% off the price list.
Gasoline vs. Diesel
You have to understand the difference between gasoline and diesel cars if you want to save on your purchase. Keep in mind that most diesel vehicles are fuel-efficient compared to those that use gasoline. Gasoline prices are also high these days.
However, you must be aware that cars that run on diesel are more expensive to purchase and maintain compared to their gasoline counterparts. Before you choose, you should factor in maintenance cost, purchase price and the fuel prices to come up to a decision.
Forget about add-ons
Every extra feature comes with a price tag. It is important that you revisit your budget and forego luxuries. At the end of the day, you just need to ensure its safety more than anything else. Though heated leather seats, satellite radio, and a touchscreen navigation system sound cool, it will just add more costs.