Buying a new car can be a hefty expense. If you are looking to get one in the near future, here are a few tips to help you get the best price.
Negotiate cleverly
If you purchase a car from a dealership, there is flexibility for you to negotiate. If you are going to a private seller, this may also still be an option. Car sellers are usually keen to get the car sold, so don’t be afraid to haggle.
To help you negotiate on a used car, look for scratches and paint defects or high mileage and mention these in a friendly but firm way to bring the price down. Suggest that you might go home to think about the purchase, and they are likely to start haggling down because they want you to buy the car on the day itself.
Consider purchasing options
If you’re buying via a dealer, there are various purchasing options that will affect the price. If you pay for the car in full, this will give you the cheapest price, as there will be no interest.
You may not have the funds to do this though, and this is where a car loan could come in handy, helping you to pay back the loan instead with an interest rate. This allows you to spread out the cost of the vehicle over monthly repayments, however, always make sure you have the means to pay back this sort of agreement before taking it out.
Your other option is to purchase with a financing deal from the dealership, paying them a certain amount monthly along with interest, owning the car outright as soon as you have paid this off.
Purchase a used car
It’s much cheaper to buy a used car than a new one. If you want something that feels almost new, going for a three-year-old car could be the ticket. Cars depreciate the most in the first three years, typically falling by 65-85% of their original value in the first year alone.
Choose your car variables carefully
Just as with car age, there are lots of variables that can influence the price of your car. If you’re canny about it, you can make sure your car has variables that lead to a lower price.
For example, you could get a stock version of a car model rather than something from a sports line, such as the Volkswagen “R” line.
When it comes to buying used cars, buying something with higher mileage will lower the cost. Picking a car with a smaller engine is also something that makes the price tag more favourable for you.
It’s a balancing act though; cars with very high mileage (such as cars that have done more than 80,000 miles) do tend to need more expensive repairs.
Buy at the right time
Knowing the ins and outs of dealers’ sales targets can help you get a better deal. Often car salespeople are keen to shift more cars just before the end of the quarter in order to hit their targets, so this can be a good time for you to make a purchase.
Looking at it from this perspective, the best times to buy a car from a dealership are March, June, September and December.
Cars are expensive. The good news is that there are lots of car variables that can bring the price down, lots of tricks you can use to haggle with the seller, and several payment options to choose from.
Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence
