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Tips for Saving Money on Your Next Vehicle

If you’re in the market for a new vehicle, the sticker price can cause shock. Add in loan interest, excise tax and maintenance costs and it can put buying a new vehicle out of reach. Thankfully, there are several ways to save money.

Put as Much Down as Possible

When buying a car, it’s important to have a sizable down payment. There are several reasons this benefits you. First, it lowers the amount of the monthly payment. Second, it attracts more lenders, so you’re more likely to achieve a lower interest rate, which over the loan can add up to thousands. Third, you don’t want added monthly payments if you’re trying to get out of debt.  If you fall a bit short on the down payment, you can use the internet to search for loans that provide short-term installment loans. 

Shop Around

Once you decide on the type of vehicle and features you want, such as LED Spotlights, shop around. Here, haste makes for waste in the form of paying more than you should. Conduct a search of the dealerships within a 30 to 40-mile radius and compare their prices. Some may have too many vehicles on hand and need to reduce their inventory, which benefits you.  

Buy Only What You Need

A salesperson makes a commission on the number of cars they sell as well as on any additional features and services they can convince you to buy. It’s up to you to know what you want ahead of the visit to the showroom. The added protection and service plans can add a hundred dollars or more to your monthly payments. A smaller total cost will help work to get debt free.  Features like a tow or a luggage rack may not be important and, if added, will also jack up the cost of your vehicle.  

To Lease or Own

Once upon a time, you were able to deduct the interest from your auto loan on your taxes. Today, that’s no longer the case. If you only put a few thousand miles a year on a car, consider leasing versus buying. This way, at the end of the 2 or 4 years, you simply return it and lease a new one. This will reduce the initial costs and prevent you from having to do major repairs that often come along after the fourth year. If you need additional income for monthly payments, look into debt consolidation to reduce your monthly expenses. 

Buying a Used Vehicle

Brand new is very appealing. After all, who doesn’t want to drive off the lot with a shiny new car? However, there’s a hefty price tag attached to it. Instead, if you want to save thousands on the purchase, buy one that’s leftover or fresh off a 2-year lease. You’ll have a lower purchase price, reduced excise tax and still have a warranty. Additionally, the car will have low miles. 

Shop Around for Insurance

Not all insurance companies charge the same rates. The type of vehicle you buy will have an impact on how much your insurance costs. Just like you shop for a car, you should also shop for insurance. Get an estimate from several companies prior to your purchase to see who offers the best prices. If you own a home and bundle the two services, most insurance companies will provide a discount for loyalty. In some cases, this can be 20 percent or more. 

Buying a vehicle doesn’t have to cause you stress. Factor in all the available options to enjoy the biggest savings.