3 Simple Car Buying Tips to Save You a Bundle of Money

These simple car buying tips will help to make buying a car what it should be, a fun and exciting experience. Unfortunately, for many it is a dreaded and often expensive experience. Follow these 3 simple tips and you will be sure to save yourself a bundle of money and alleviate a ton of stress.

1. Do Not Buy New
No matter what type of car you buy you can expect some sort of depreciation in value. This is especially true with new cars. Once you take delivery of the average new car you can expect to take a hit in the 15-25% range. Taking delivery simply means driving all four wheels off the lot after you've signed the contract. Yes, that simple act of literally getting all four wheels off the lot will cost you thousands. You are sure to lose the equivalent value of the tax, title and license (TT&L), plus you will take a hit on the actual value of the car itself. On average, TT&L will be about 8% and the depreciation on the vehicle will account for roughly 10-15%. Think that is crazy? Try this to see for yourself, drive off the lot, immediately turn around and drive back on the lot to try to trade it in...You will see for yourself how much you just lost. Buy used and let someone else take the big hit for you!
2. Shop & Negotiate Online
Using the Internet is one of the top car buying tips I could recommend in and of itself. It is certainly an excellent time and money saver. Shopping online keeps you from driving dealership to dealership and once you have found the type of car for you, you can negotiate with multiple dealers at the same time. Oftentimes, negotiating may not even be a factor, as many dealers offer their lowest prices right up front due to the massive competition online. Very powerful!
3. Borrow the Car
You've found the car, negotiated a great price, got numbers for your trade, monthly payments and financing terms. You are happy and all that's left is to do is sign some paperwork and it is yours... Not so fast! Your emotions are probably running pretty high at this point and it's time to get away from the dealership to clear your head. You want to make sure you are making a great deal on a car you truly need and want without the pressure from a salesman or finance manager. The best way to do this is to ask the dealership to let you take the car home for the night before you make your final decision. This allows you to review the deal in the comfort of your home and wake up to the car in your driveway in the morning. A lot can change in 24 hours. You may find the deal wasn't as great as you thought or that your cool car has flooded your driveway with oil.