Americans spent a whopping $462 billion on new cars in the year 2019. Despite this steady growth in vehicle ownership, 9% of American households still don’t own cars.
Buying a car is a significant life event, with tremendous financial implications. This cost concern is among the limiting reason some Americans still don’t own vehicles. Nevertheless, the convenience and comfort that comes with owning a car make this decision worth your every penny.
Are you a car geek looking to add a new machine to your collection or a new buyer? Here’s how to get a car for cheap and escape the often frustrating process of balancing between cost and quality.
1. Have a Budget
Acquiring a car isn’t buying candy. While your sights may be set on a specific car model, your pocket has the last say. It helps to have a candid assessment of your estimated budget, vis-à-vis the market value of cars.
Whether you intend to fund this significant purchase through a loan or a cash transfer, budgeting early can help you avoid any future regrets. Americans have a historic love affair with their cars. However, before you go all out, have a considered budget on the maximum you want to spend on this venture.
2. Do Your Homework
Have you been wondering how to get a car for cheap? Well, it may take more than just perusing past a few auto ads online. Most first- time car buyers get a raw deal because they don’t spend time doing their research.
Now that you have a budget, it’s easy to narrow your search to cars that fall within your estimates. Your worst mistake would be to enter a car lot without a clear consideration for the options that fit your budget.
If you’re looking to buy a car soon, in-depth research will give you the bargaining power you need when negotiating. Once you narrow down your search and then understand the specific market values for each option, it will be smooth sailing.
3. New or Used?
What do you look for in a car? The choice between a new or used car often trickles down to this vital question.
Most modern cars are more expensive due to their sleek finish and coating. But used cars can still match your needs feature-for-feature.
It’s a no brainer that used cars will cost you less. However, the condition of the vehicle is always the deal-breaker.
Settling for a new car gives you the benefit of warranties and a clean slate when it comes to the maintenance history. Nonetheless, it costs a pretty penny for you to afford a new car. You also end up paying more on sales tax and depreciation if you go this route.
Most potential car buyers don’t realize that they can get a perfect fit for their automobile needs in a used car. The best part is that used cars don’t come at a premium.
If you’re stuck between buying a new or used car, focus on the condition. If you can get a well maintained used car at way less than the MSRV for new cars, don’t hesitate. Buying a used car isn’t that bad after all.
Are you wondering about the best way to buy a used SUV cheaply? How about you start by walking into a used car dealership today. With these specials from Mathews Ford, you’ll save as much as $2,378 on your next purchase.
4. Consider any Other Additional Cost Information
Price is at the center of your final decision when looking to buy a car. Once you have done your primary research, consider the cost-benefit for each option. Used vehicles have a wholesale value that encompasses the various underlying conditions in a car that affect the actual cost.
It would help if you considered the wholesale value and the cost of any minor or major repairs you might need to make once you pay for the asset. Ensure that you conduct a valuation and evaluation of the car beforehand. The worst mistake would be to buy a car cheaply only to spend your lifetime of savings on constant repairs.
If you’re purchasing a used car, ensure that you consider any probable additional costs above the stated price. Buying a car from a trusted dealer eliminates this fear of buying a faulty vehicle.
5. Consider Your Pre-Financing Options
The general rule of thumb is that your monthly auto expenses should not be more than 25% of your earnings. This is the more reason why getting a cheap car is imperative. In the year 2017, a record 107 million Americans were still servicing car loans.
To make the best out of your car purchase, you need to ensure that you consider the financing option with the lowest interest rates. If you are looking for the cheapest deals for cars, only work with a dealership that offers competitive prices in their financing options.
It wouldn’t make sense to settle for a used car based on the affordable retail value, only to pay almost double due to the accumulated interest rates in the long haul. Before deciding on a specific dealership, ensure that their financing programs are practical.
You can consider other options, such as banks and lending institutions, to finance your car ownership dream. This is in the event that the dealership has exorbitant interest rates.
6. Consider Discounts in Advance
Are there dealerships offering discounts near you? One way of ensuring that you get cheap car deals around you is to consider pricing cuts. Most times, these offers are either cashback deals or rebates.
If you are a student, member of the military, or a credit union member, you may be eligible for auto discounts. Further, consider the perennial sale events in the dealerships near you. You may also consider specific periods in the year, such as during the festive Christmas calendar where dealerships extend generous offers.
7. Consider Trade-in Options as the Last Card
Trade-in is a perfect way to save when buying a new car. However, depending on the point at which you mention the trade-in option, your quest for a cheap car may be a piped-dream. Consider negotiating the price of the vehicle to a value that best suits you first.
Once you negotiate for a price that fits your budget, you can then consider making the best out of the trade-in. Trade-in saves you money, especially when buying a used car.
Wondering How to Get a Car for Cheap? You Now Have the Answers
The cost implication of acquiring a ride is one of the reasons most people dread buying cars. Are you wondering how to get a car for cheap and cut on the exorbitant pricing attached to most new car models?
With these seven tips, you now know how to get the best deal on a used car without straining your budget. All you need is a trusted dealer to walk you through the process.
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