Tips for Saving Money When Buying a New Car

While new cars can be expensive, you don't need to immediately think of buying a used or pre-owned car in order to get the model and the features you want. Very often a consumer can save money when buying a new car if they know a few simple tips and tricks. Before you head to the dealership, note the following suggestions to keep in mind.

1. Be aware of insurance and finance options

Dealers often typically have finance and insurance options they offer to consumers, and while some might be around the same cost as a loan or insurance coverage you get elsewhere, it's good to shop and compare. Remember that a lower interest rate for financing, even if it's just 1% lower, can translate into a tremendous amount of savings over the life of your auto loan. For instance, if you find your own financing or insurance and pay just $10 less every month for these every month, for a 60-month loan, that adds up to a savings of $600. Shop around your options for financing and insurance coverage even before you visit the dealership so you can easily compare offers.

2. Buy from dealer stock 

While you may want a particular paint colour or other such detail for your new car, dealer stock and on-hand models, meaning those that have already come off the factory line, can be much cheaper while still offering the same features. Dealers need to move those cars off their lot quickly in order to make room for newer models, and having a car made with custom features at the factory is almost always sure to increase its price. Ask about dealer stock and on-hand models even before considering any other model and note the potential savings.

3. Price your old car first

It can be very easy and convenient to bring your old car into the dealership and have them give you a trade-in credit for it, but you might get more money if you sell the car on your own. It can be a hassle to place ads online and talk to potential buyers, but it can also be worth the extra money you earn for it. Before you decide which is the right option for you, talk to someone at the dealership about the amount they would give you for a trade-in for your car, and then place some free online ads and note the offers you get.

Talk with a dealer like Performance Automobiles to learn about other deals or sales that might be going on to help you get a great car for a great price.