Are you in the market for a new car but are afraid of what that means for your budget? Are you scared that it won’t end up being affordable and that you’ll have to put it off? No question buying a car is a big ticket investment, but that doesn’t mean you don’t have some wiggle room. There are ways to buy a car that suits your needs and wants without spending more than you’re comfortable with. Here we’ll take a look at how you can save money and buy a car on a tight budget.
Make a List of Needs and Priorities
A good first step when looking for a new car is to make a list of needs and priorities. Notice how this is different from wants? As people shop around for a new car, it can be very tempting to spend more than necessary because you get wrapped up in all the bells and whistles that some makes and models offer. If you’ve already made a list of needs, you’ll be able to narrow down your options and look right past the unnecessary options that only cost you more money.
Some of the standard needs and priorities can include:
- Petrol, electric, or hybrid vehicle?
- How many people must it seat?
- How much cargo room do you need?
- What class of vehicles makes sense for you?
- What’s the fuel economy like?
- New or used vehicle?
- Will parts be easy to find for repairs?
You may have a lot more questions to ask and needs to specify, all of which should be done in advance of shopping around.
What’s Your Budget?
It’s really hard to stick to a budget if you don’t have one set, so this needs to be another step in the process. Sometimes the sticker price isn’t very helpful, so instead, break down the price into the payments you’re comfortable with. What can you afford monthly (financing or leasing) and how long do you want to take to pay it off?
Can You Free Up Space in the Budget Elsewhere?
Sometimes the budget is so tight that the odds of finding a vehicle in that price range aren’t very high. If that sounds familiar then it may be time to re-work your budget entirely. Take a look at where you’re spending your money each month and ask yourself if you can make any cuts? If you can free up cash from other categories, you can then increase your car allowance budget.
Ensure the Price is Right – Compare Care Finance Quotes
Sometimes the hardest part about saving money is recognising when you are offered a good deal. It’s hard to know if the financing deal is good or bad without car finance comparison quotes. You can find the right car finance deal for you by using Quotezone. Simply fill out the short form and you’ll get a list of comparison finance rates from top lenders that are personalised for you. There’s no need for you to do the legwork and then you will know for certain if the deal is good or not.
Shop at the Right Time of Month
Did you also know that there are certain times of the month when you may be more likely to get a deal? Car salespeople often have sales quotas to meet and as the month draws to an end, they are anxious to meet that quota. That means you can hold the upper hand and squeeze a better deal out of them so they get the sale.
Some experts suggest purchasing a car mid-week can get you a better deal, but that’s not guaranteed.
Don’t Fall for the Upgrades
A sales tactic that is often used is to give buyers what they want and present them with an entry-level model, build the deal around that model, and then at the last minute, present upgrades meant to tempt you. These upgrades may not seem like a lot of money individually but once you start adding them up, they can push your budget way over what you’re comfortable with.
Go Into the Process Prepared to Negotiate
As you can tell from these tips, it’s also clear that you need to go into the process prepared to negotiate. The sticker price on the car shouldn’t be seen as non-negotiable, rather, it is the starting point. You need to be firm when negotiating and also be prepared to walk away if you don’t get the deal you’re after.
There’s No Need to Spend More Than You are Comfortable With
Thanks to each of these tips there is no need to spend more than you are comfortable with as you purchase a new car. You want to be sure it’s not only a car you love, but a price you can afford and won’t leave you struggling to pay the rest of your bills.