When it comes to buying a vehicle you’re looking at a pretty big investment. To some people, the expense of a vehicle is a lot more than it is to others, but no matter which financial bracket you fall into, it’s a good chunk of change going to something that is going to continually cost you money on a weekly and monthly basis. Because even brand new vehicles can drain your pockets you need to make smart choices when it comes to buying one, whether it’s new or used.
Have an idea of what you’re looking for and how much you want to spend on it. Know what kind of driving you’ll be doing so you can invest in some savings when it comes to mileage if you’ll be driving a lot. Invest in something with enough space as well. Here are some things to consider when it comes to saving money on your next vehicle purchase.
Find The Right Vehicle
Make sure you find the right vehicle for you or for your family, depending on your situation. If you drive a lot you want something with good gas mileage. If you don’t have kids but haul a lot of stuff, often, you may want a truck. If you have kids and haul stuff you may want an SUV or a minivan, and you may want something that comes with third-row seating.
Buying a used vehicle can save you some money on the cost of the vehicle, but it also puts you at risk of needing to pay for major repairs sooner than you would with a new vehicle. However, you can look for a vehicle that comes with a warranty, often one or two years, depending on the vehicle. This will give you some peace of mind when it comes to buying used.
Find The Right Loan
You need to find the right loan for you. Your loan will depend a lot on your credit score. The good thing is that there are plenty of dealerships out there that cater to people with less than stellar credit, so even if you’ve made some mistakes you can still get financed for a vehicle.
The key is to shop around and find out who can offer you the best interest rates, no matter what your credit is like. You don’t really want to be stuck paying twice what your vehicle is worth just to own a vehicle.
Have Something Down
You’ll save money on the overall cost of your new vehicle, as well as on your monthly loan payments if you have a good deal of money for your down payment. Shoot for twenty percent minimum if you have something to trade-in as well. Otherwise, try to have more than twenty percent down.
You’ll also save on interest if you make additional payments on the principal part of your loan throughout your payment plan (specify it’s for the principal and make it whenever you can, like tax time).