How to Save Money on your next Car Purchase

If you are looking for a new car, you might be interested in some ways you can save money on your next car purchase. Whether you are looking at a new car, or a used car, there are plenty of ways you can save money and get the car that you really want. It just takes a little patience and some know-how to get the deal you really deserve.

Trade In Your Old Car

Trading in your current car can save you thousands of dollars on your next car purchase. This can save you a ton of money and allow you to afford more car for less. The biggest thing to keep in mind is the amount of equity that you have in the car and how valuable the car is. A newer car that has fewer miles, or accessories that are in demand, could fetch 10,000 dollars. A junk car might be worth 1,000 dollars on paper at best.

Wait For The Model Year To Change

What is the difference between a new car in August and a new car in November? Only a few thousand dollars. Car dealers usually scramble to get the old model year off the lot as soon as possible. This can open them up to more negotiation and a sweeter deal for you. Why should you pay full price for an older car? Dealers realize this won’t happen and chop thousands off the price of an older model year.

Only Buy What You Need

If you want to save your money, you should only purchase what you will use. If you don’t need a convertible, or you don’t need a navigation system and leather seats, you should not buy a model with those options. The best deal is the deal you get when you buy only what you need and can afford. Know your budget ahead of time and understand that overspending on some cool accessories isn’t worth it.

Get The Best Interest Rate

As part of the negotiations for your car, you should always hold out for the lowest interest rate possible. The difference between a 6 percent rate and a 5.5 percent interest rate could be hundreds of dollars over the life of the loan. Do yourself a favor and hold out for that rate drop. This is even more crucial if you have good credit because you deserve the lower rate.

To save money on your next car purchase, you should understand the market and how much your car is worth. Shop after October to get a new car for used car money and remember to get the lowest interest rate around. If you do that, you can make sure to get the best deal on your next car purchase.