If you’re headed down to the car lot to buy a brand-new vehicle, how can you save money and make sure you get the best deal possible?
It’s a question that’s on people’s minds as they navigate today’s new car market.
These new car saving money rules can help you make the new car buying process easier on your wallet.
Research Vehicle Brands
Different makes and models of vehicles have radically different prices. For instance, many new Toyota vehicles carry higher MSRP sticker prices than some other choices.
In some ways, mechanics and owners suggest you might get more value out of a Toyota vehicle, which is why the prices are higher.
But sometimes, spotting a bargain brand that works just as well will help you save in the long run.
Yes, that’s right – new cars can vary in pricing depending on their color.
You might end up paying more for an all-black vehicle than you would for something in a gray or light teal – and a bright red might cost you more money on the sale price, and sales tax, while also pushing up your insurance rates down the road.
Of course, for a lot of people the color of their car is a non-negotiable, if this is the case for you try your best to live frugally and save up the money for your desired color.
Consider a Low Mileage Purchase
In so many cases, you can get a relatively new car for much cheaper when it’s already been driven off the lot.
Even a few years ago, car shoppers were cluing into this reality that buying a low-mileage car can be a lot cheaper than buying a brand-new car with zero miles on the odometer that is just rolled out of the factory.
Some of the realities around dealership operations and car pricing suggest that you can get a good deal on low-mileage vehicles in many cases, especially if you do the homework and negotiate with dealers.
However, in some cases, you can also get big discounts on brand-new cars from MSRP partly because dealers have a hard time selling inventory.
Some salespeople might have to meet their quotas by the end of every month, so sometimes it isn’t a bad idea to go to the dealership towards the end of the month.
They are more likely to give you the best price they can to make their sale!
The key is to do your research.
Factor in the Chip Shortage
As the American economy changed through Covid-19, one phenomenon became clear.
The manufacturing world was short on microprocessors or microchips.
Chips are the computer components that make everything work, from gaming consoles to infotainment or sensor tracking systems on automobiles. Modern cars also have a lot of chips in them.
Car manufacturers found it hard to source microchips, and as late as a year ago, some makers, including Volkswagen, reported still having problems.
So factor that into your new car purchase price.
If you’re willing to wait until this issue is resolved, you can expect a great price down the line!
Get the Right Insurance
Another way to save money on your new car is to research your insurance costs before you buy.
Some people don’t get sticker shock when purchasing a car, but they get an extremely high price when shopping for insurance.
In general, the newer the car, the higher its value and the higher the insurance rates will be. So it’s vital to shop car insurance rates.
It’s important to find a good balance between a good insurance and a cheap one.
Don’t just opt for the cheapest insurance you can find cause that will lead to you paying more money in the long run.
Keep a close eye on what the insurance covers and doesn’t cover and choose the one that’s best for you!
Other relevant factors may include the following:
- The car’s performance
- Total horsepower
- The color of the car
- ZIP Code where the car is kept
- Average annual use
- Mileage of the car
Think about all these things when you’re buying a new vehicle.
Cost of Gas
Gas prices are higher than they used to be. That’s a reality for everyone.
With that in mind, think about how much you’ll be paying for gas when driving your new car around.
You might get a great deal on an SUV, but a lot of that money might get chewed up at the gas pump.
Calculate the mileage of your car and how many gallons of gas you use. This will give you a good idea of how much you can expect to spend every week/month/year.
Total Costs of Ownership
It’s a good idea to project your use of the vehicle and think about the total cost of ownership, including maintenance over time.
For example, you might want to buy a hybrid vehicle because it’s cheaper on gas, but will the addition of an electric motor to your gasoline combustion engine make it more difficult to service this vehicle?
What does your mechanic know how to do and how expensive will it be to work on your vehicle when something is wrong?
Notwithstanding the higher costs for some hybrid vehicles, you can get more savings in the form of less money paid at the pump.
But working this out will help you figure out your total cost of ownership each year.
Insurance, again, is part of that, so you want the most efficient coverage you can get for the miles that you drive your vehicle.
Make a log book and see how many miles you typically rack up in a month or in a year, and you’ll be on better ground to find the best policy and coverage, as well as project your TOC annually.
Use these time-tested tips to win on car costs and get more for your money.
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Last Updated on 22nd November 2022 by Emma