If you have gone car shopping, then you know those prices aren’t a joke. When most people factor in their income, they may feel like buying their dream car is impossible. Although it may sound difficult, it’s not impossible. With some perseverance and planning, you may soon be driving a new car to your garage. In this article, learn some money-saving tips to help you purchase a new car.
Compare Prices at Multiple Dealerships
Don’t just look for a car in your nearest dealership and assume that’s the best price you can get. Look into multiple dealerships, even those far from you. You may find the same car is cheaper by several thousands of dollars, saving you some money. Don’t be in a rush to go with the first price you hear, especially if you’re trying to save money.
Cut Back on Your Expenses
Cutting back on some of your expenses will help you save money and direct it to your car budget. For example, if you have subscribed to a costly cable plan but don’t need those many channels, consider opting for a cheaper plan. If you eat out often, start preparing meals at home. You’ll save hundreds of dollars every month, which can go to your car budget.
However, don’t cut down on necessary expenses just because you want to save as much money as possible over a short period. For instance, if you’re unwell and it’s a serious condition, get immediate medical care because some conditions can lead to death. One in 10 people who contract Legionnaires’ disease die from the infection. Such health conditions shouldn’t be taken lightly. Use the money you have saved for the car to treat the condition and keep saving once you’re back on your feet.
Negotiate a Good Price
Learn how to negotiate for a good price. If the dealer doesn’t bulge, be prepared to walk away. In addition, keep an eye out for hidden fees that may increase the final cost you pay. Ask the dealer to disclose all costs, including the cost of an additional warranty. With this information, you can negotiate from an informed point of view.
Look for a Side Hustle
If your current income isn’t enough to purchase a new car, you can look into side hustles. This can be freelancing, coaching, or starting a business. Ensure you start a legal business and adhere to permit requirements before you find yourself facing legal issues. Penalties for running an illegal business can include fines, jail time, or probation. If your sentence is either six months in jail or probation, and you opt for probation, then you violate it. The judge will give a longer sentence than the initial six months. To avoid all these legal problems, follow the right route to starting a business.
Open a Savings Account for Your Car
Another way to save money to buy a car is by opening a bank account specifically for the car. Contact your bank and open a savings account. There you can monitor your progress. Plus, the savings account can earn some interest, especially if you open an account with the same bank where you already have a checking account. The good thing with a savings account is that you can’t withdraw money anytime you want, which gives you some saving discipline.
Shop for Car Insurance
Car insurance will contribute to the cost of owning your new car. Because of this, ensure you find a reasonable rate. The last thing you should be doing is driving without insurance. In most places, this is illegal, and you also risk financial ruin if anything happens to your car. Unfortunately, according to Forbes, one in every eight drivers lack car insurance. This is a risky move. Shop for car insurance and find an affordable rate that suits your budget.
Buying a new car may seem impossible when you look at the prices in the shop. To make the plan feel less daunting, use these six money-saving tips. The more you save, the more the idea of owning a new car will feel doable.