How Car Enthusiasts Can Save Money on Their Next Vehicle

For a car enthusiast, buying a new vehicle is exciting. A new car may be your second biggest monthly expense after housing. You can save money on your purchase with these four tips.

Consulting Consumer Review Websites

One great way to get more information about a make and model of car is to visit consumer review websites. There are paid review websites that require a subscription in order to receive all of the available information, or you can visit some of the more informal review websites. 

On these sites, you can get information from people who have actually driven and owned the car that you are thinking of buying. You might find out pertinent details such as whether the car has a recurring issue with its brakes or if it is more of a gas guzzler than expected. 

Finding out this information ahead of time could help you steer clear of a car that is known to have costly problems, frequent maintenance or repair needs or that requires more gasoline than other cars of its size.

Visiting an Auto Dealership

Finding the right dealership is key to finding the right vehicle for you. Visiting a few car dealerships in St. George or in other areas is an important step when shopping for your next vehicle. 

You can talk with the salesperson and find out more about any special offers that the dealership might have. For example, if you are trading in your current car, you might be able to get a discount from the dealer on your new car. 

If you are a repeat customer at the dealership, they might offer you a special incentive. From time to time, manufacturers also offer incentives that are only available through the dealership. 

While at the sales center, you will also be able to go on a test drive and make sure that the car is comfortable and feels good to you when you drive it.

Look Into Financing Options

Most people will need some financing for the purchase of a new vehicle. If possible, work on improving your credit score in the six months leading up to your car purchase. 

The better your credit score, the lower your interest rate on your car loan. Look into both dealership and manufacturer financing options. 

If you can make a down payment or have a trade-in that can reduce the principal of your loan, this could also save you money. Consider a shorter loan term. 

Even though your monthly payments would be more on a five year loan compared to a six or seven year loan, you will pay less in interest, saving you money over the long run.

Paying With Cash

If possible, pay for your new vehicle with cash. You might be able to lower the purchase price with a trade-in or dealer incentives, and then pay cash to cover the rest of the vehicle's cost. 

By paying cash in full up-front, you might be able to negotiate a lower price because the dealer is not taking a risk in you defaulting on payments. Paying cash might require that you put a "car payment" into a separate savings account until you are ready to buy your new vehicle. 

Avoiding taking out a loan could save you thousands of dollars in fees and interest over the next few years. Do keep in mind that timely payments on a loan can help you build credit, so there is a trade-off if you pay cash.

Doing plenty of research about cars you're considering buying could help you to avoid getting a lemon. 

Consider the costs of fuel and insurance when buying your next vehicle. The staff at an auto dealership are also helpful resources and can point you to financial incentives and financing options.