How to buy your next car for less
After a house, the most expensive thing you will ever buy is a car. And while a home can increase in value over time, a car will eventually become a nearly worthless piece of metal, plastic, and upholstery. According to Kelley Blue Book, new cars cost about 5.43% more in 2021 than in 2020. The average car costs about $ 41,263.
As car prices continue to rise, it is important to find ways to get the best car for the best price. Most financial experts will tell you to fix your credit before you get pre-approved for a car loan or pay your car in cash, but there are other things you can do. Here’s how to buy your next car for less.
Buy a used car
The Automobile Association says a new car loses value as soon as it leaves a dealership’s lot. And at the end of the first year, it loses about 40% of its value. If you drive 10,000 miles a year, the car will have lost about 60% of its value by the third year.
So it makes sense to buy a used car. You save money and still get a valuable car. But if you are planning to buy a car that is only one year old, it may be more affordable to buy a new car in some cases, especially if you factor in the dealership and manufacturer incentives.
Do your homework
Whether you are buying a new or used car, do your homework first. Research the prices and options for the cars you are considering. Research is one of the most important steps in buying a car, and it takes the longest (in most cases). Look for different options, evaluate them, and then choose the best one.
Research also helps you know car prices, and the price will determine the type of car you buy. You will also need to factor in the price of fuel, maintenance costs, and auto insurance to get the true cost of the car you want to buy.
Leasing a car makes more sense than buying under certain circumstances. The most important factor is the average annual mileage of your vehicle. If you don’t drive more than 15,000 kilometers per year, leasing may be a good option. When you rent a vehicle, you lease it to the dealer for a period, usually 36 or 48 months. Once the rental period is over, you can return the vehicle to the dealership or purchase it for a predetermined amount.
Renting a car also means worry-free maintenance. Since most new cars come with a 3-year warranty, if you take out a three-year lease, most repairs will be covered. To determine how much you will pay each month, use a rental calculator. You will also know the effective interest rate of the lease.
Time your purchase
Buy the car at the end of the month as most sellers are trying to meet their quotas or qualify for a bonus. Also, be aware of seasonal trends in your area as they affect car prices tremendously. For example, four-wheel drive trucks are generally in high demand in winter but cost less in summer. Some jeeps and convertibles are cheaper in the fall.
Disclaimer: This article is generated from the feed and not edited by our team.