When it comes time for you to buy a car, you need to save every dollar that you can. Be a smart car shopper and arm yourself with a little bit of knowledge before taking on the second biggest payment that most people make.
Make sure your timing is right when buying a new car. Buy toward the beginning or end of the month when the salesman is trying to get ahead or struggling to meet monthly quotas. Buy a car when the new models come out. For example, buy a new 2011 car when the 2012 models come out in the last few months of 2011. Buy towards the end of the year because dealerships don’t want to pay any end-of-the-year taxes.
Look for auto manufactures rebates and incentives. This is as good as cash. REMEMBER that a dealership will get this cash rebate from the manufacturer, so still try to get as good a deal as possible. Don’t let them tell you that you are already getting a good discount from THEM.
Don’t buy any extra things that you don’t want in a car. Be cautious of auto warranties and don’t be pressured into immediately buying one. Your new car should already come with a warranty and you can purchase additional coverage at a later time when you have time to shop around.
The best time to buy a used car is a few months after the tax season. In March and April, many people will use their refund checks to trade-in their old cars and buy a new car. However, other people are looking to use their rebates to purchase a quality used car. Prices will be higher as the demand has peaked during this time of the year. Wait a few months and then make your purchase.
Do consider a warranty for your used car, but shop around and get the best price. Consider your driving habits when getting a warranty. If your warranty costs $2000 and is for only 2 years and/or 24,000 miles, and you drive 20,000 miles a year, try to anticipate if you will need $2,000 worth of repairs in 14 months. You may be better off without a warranty, especially if you have to pay a deductible.
Consider buying your car from a private party. Used car dealerships will cost up to 50% more for the same car and they don’t do enough to service your car to make it worth the extra money.
Whether you buy new or used, paying cash for your cars always gets you the better deal.
Be smart when you buy a new or used car. Be patient and make sure that you absolutely are getting what you want in a car.
George is very knowledgeable when it comes to cars, as he works for a highly respected auto company.