To build wealth, it is important to save money on everything that you can. While it may be fun to spend money freely, you will regret it when you need that money for unexpected expenses or for your retirement years. Buying a car is one area where people often spend more than they should. Here are some tips that will help you obtain a car that is stylish and affordable for less that you would expect.
Lower Your Expectations
The biggest barrier to people saving money on their car purchases is the belief that the car must look pristine and new for it to be a good buy. Many good quality cars are overlooked because of faded paint or visible cosmetic damage on the vehicle. Lower your expectations of finding a pristine vehicle for a steal and scour the used car lots for a reasonably priced vehicle that runs well. If something cosmetic on the car truly bothers you, you can always have it repaired or repainted at a later date.
Choose A Price Range Before You Begin Looking
Before you start shopping around for a vehicle, you should determine an acceptable price range that you would be willing to spend for the vehicle. Many people that do not want to incur debt pay for their vehicles from their savings so they know exactly how much they have to spend before they begin looking. Sticking to this price range while shopping will help you narrow down your choices and prevent you from spending more than you should. Car salesmen are experts at talking you into paying a higher price for a vehicle, so having a price already in mind will help you resist their tactics.
Arrange Your Payment Method
Figure out how you are going to pay for the vehicle before you begin going to dealerships. If you are going to pay with funds from your bank account, nothing needs to be arranged. However, if you are planning on financing the vehicle, it is often possible to find better deals than what you would receive financing the car through the dealership. Check out the loan options available through local banks and credit unions to see if they are offering low rate loans that you may qualify for. There are also independent financing companies and credit card companies that may have special offers available for vehicle loans.
Expand Your Search Area
In most areas, there are numerous used car dealers within a 20 mile radius and many of them may have better deals available than the dealers that are closer to your home. Give yourself plenty of time to review the vehicles at these dealers so that you can make the best choice for your needs and your financial situation. Many used car dealers also list their vehicles online to make it easier for potential customers to see the vehicles that they have available. Create a list of vehicles in your price range that you would like to test drive and schedule a day to go around town to see the cars on your list.