This post contains affiliate links. Click here to read my affiliate policy.
Last Updated on July 16, 2020
A new car is a massive investment, no matter how much money you have. Fortunately, there are ways to be a smart shopper and find the best vehicle available. For 2020 and beyond, let us take a very close look at some financially savvy car buying tips.
Avoid 72-month car loans
To start things off, avoid 72-month car loans as much as possible. It’s a long time that will result in a massive money sink. While it might seem enticing right now, you’ll be losing out on money in the long run. You’re better off saving up for a time when you can buy a car without relying on a huge loan. Some loans feature other time windows but remember that all of them have a downside in some shape or form.
Hybrid and electric vehicles are some of the hottest cars on the market. They’re also some of the most affordable to own over time. Even when factoring the cost of having a home EV charger installed in your garage, you’re still saving money in the end. More and more electric vehicle owners are turning to public and fast chargers to get the job done. These chargers can power your vehicle in less than an hour and at a fraction of the average price.
Save for a significant down payment
Another great idea is to save for a substantial down payment relative to the total price of the car. As every financial advisor will tell you, this is the most cost-efficient method of buying a car. Although you might have to change your spending habits for this year, you’ll end up with more savings in the end. The car dealership will also be happy to receive a sizeable down payment, and they’ll be highly cooperative from start to finish.
Choose certain models
Not all cars cost the same amount. It’s clear that inexpensive cars are friendly for your wallet, but it’s easy to underestimate just how much variance there is between different models. If you have your eyes set on a specific model of car, continue searching a little instead of settling for it right away. You could very well find an equivalent model that saves thousands of dollars.
Consider all dealerships
Last but not least, consider all the dealerships in your area. You don’t want to overlook any dealership even if it only sells used or strange models of cars. They may have attractive options that you have never considered before. Moreover, you want to think about online dealerships. In this age of technology, it’s easier than ever to make transactions online. You don’t have to worry about buyer fraud, and the selection of cars is even more extensive online. You can also take advantage of universal discounts and coupons.
Right now, these are some financially savvy car buying tips that can save you a lot of money. It’s a big mistake to go to a dealership and purchase the first car you see. Do a little bit of smart shopping and secure the vehicle of your dreams!