Friday, July 29, 2016, PM | Leave Comment
A vehicle is one of the most expensive things that you will ever purchase. Even if you buy an older used car, you will still spend anywhere from $5,000 to $8,000 before accounting for gas, maintenance and insurance.
Therefore, it is in your best interest to know a few tips and tricks that can help you save money on your next car.
Buy a Car That You Can Restore Yourself
When older cars start to cost more than they are worth to its current owner to fix, they may consider selling or junking them.
For the price of a new starter or a new set of brakes, you may be able to purchase a serviceable car that can get you through the winter or get your kid to college and back in a reliable fashion.
Companies such as U Pull & Pay offer reliable parts at prices that may be lower than what you would find at an auto parts store.
Find the Lowest Possible Interest Rate if Financing a Purchase
If you plan on financing your next purchase, make sure that you get the lowest possible interest rate.
While most people only look at the monthly payment to determine if a car is affordable, it’s actually the interest rate and loan term that determines how much the loan actually costs.
It also determines how much the lender will make from the deal.
Therefore, do your best to pay your loan off as quickly as possible to further reduce the amount of interest that you actually pay.
Only Buy What You Need
Ideally, you will use all of the features that your car has. If you don’t think that you will want or need a feature, don’t pay extra for a car that has it.
For instance, if you have your own GPS, don’t buy a car that has a navigation system.
You also don’t need leather seats or other premium trim to get the most from your car.
Those who know how to use a stick may save money buying a car with a manual transmission as opposed to an automatic transmission.
Buying a car is a big investment that can take months or years to pay for.
Knowing what you need as opposed to what you want can help you narrow your choices to what you can actually afford today and over the next several years.
This can make it easier to get the most out of your investment for as long as you own your car.
Kara Masterson is a freelance writer from West Jordan, Utah. She graduated from the University of Utah and enjoys writing and spending time with her dog, Max.Facebook.com/doable.finance