If you are in the market to buy a new or used vehicle, you may have a lot of things to consider when it comes to costs. Every effort to cut costs can make a difference – especially in this market where car inflation is high. In this article, we have come up with 5 tips for how to save when buying a car to help you in the car-buying process.
How to Save When Buying a Car
1. Get a Low-Rate Auto Loan
The most important tip we have for how to save when buying a car is to get a low-rate auto loan. There are a lot of financing options available, and you get to choose. Dealerships often partner with large banks that have high-interest rates. When purchasing a car, know that you have other options for financing than what they have to offer.
Members 1st Credit Union is a non-profit, member-owned credit union. Because of this, we are able to offer lower rates and lower fees than most banks. When you are shopping for a car, consider an auto loan through Members 1st Credit Union to get low-rate financing.
2. Be Flexible with the Car You Buy
Consumers shop for a car based on many different factors besides price. Oftentimes, they let their feelings about a car dictate their buying decision. It can be easy to be wooed by the nice paint job, the leather seats, the electronic navigation, and all the bells and whistles while you are car shopping. However, considering the long-term objectives with finances and dependability in mind is far more valuable.
Take your time looking for a car and be flexible. Don’t get caught in buyer’s remorse by not looking thoroughly at your options. Here are some ways you can be flexible while also saving money when buying a car:
- Consider buying used
- Don’t buy the first car you like
- Determine which features are “must haves” and which are “wants”
- Do your research to compare costs
- Work with a trusted professional
3. Use a Broker
Going through a car broker rather than a dealership has many benefits. A car broker works for the consumer, not for a dealership. Because of this, a car broker will most likely get you a better price on a car than a dealership.
Brokers also shop through several dealerships, as they search for exactly what you need and want in a reliable car. This saves you time so you don’t have to visit different dealerships to find what you are looking for.
4. Negotiate
Whether you are shopping through a dealership or broker, don’t be afraid to negotiate. The price of a car is marked up and there is wiggle room to bring that price down.
Doing your research is key to negotiation. Make sure you know what the car is worth and compare prices ahead of time. If you’re not sure where to start, read these tips for how to negotiate with a car dealer.
5. Check Insurance Costs Before Purchasing
Insurance rates vary by many factors – including the driver’s age, location, driving record, year, make, and model of the vehicle, and more. If you have your eye on one or more vehicles, check the insurance rates on them.
To do this, contact your insurance agent, and provide them with the VIN or year, make, and model of the vehicle(s) you are considering purchasing. Your agent can then give you an estimate on each vehicle. Knowing the cost of insurance ahead of time can help you prepare so you don’t get caught off guard by the price.
Members 1st Credit Union Can Help!
Thank you for reading How to Save When Buying a Car. If you are a member of Members 1st Credit Union or you work for any of these qualified employer groups in New Jersey, you can take advantage of our low-rate auto financing with your next vehicle purchase. We look forward to helping you save on your next auto purchase!d