How to save money when buying a new car

If you are anything like me you dread having to buy a new car. There are so many factors to think about, so many potential choices of vehicle and purchasing options. Buying a new car is a big process – one where you want to get the best deal possible, finding a car that comes closest to meeting your requirements without costing you a fortune.

I can’t put it off any longer. So, to help others going through the same process, whether you plan on buying your new car second-hand or approaching a dealership on a brand new model, here are the results of my research into the things you can do to save money on your purchase.

Consider your vehicle requirements

Although we all have certain makes and models we’d really like to have, it’s better to think about what you actually need from your car.

When factoring in your budget constraints, it likely isn’t worth putting more financial strain on yourself just to upgrade to a model with specs you don’t need.

Consider what your minimum requirements from your car are in terms of power, size, age, etc. and then search from there. This can save you money and give you a more realistic idea of what you can get within your budget.

Shop around and negotiate

One look online and you’ll see just how much the price of one model can vary. A wide range of factors could affect how much a car costs, but a little research will give you a rough average to work with.

When talking to different dealerships, you can posture with the other deals you’ve found in order to negotiate on price and secure yourself a great deal.

This might not guarantee that a salesperson will budge on price, but shopping around is a great way to find a bargain in itself. A forecourt further away which you hadn’t considered before might just have your perfect vehicle!

Research your car finance separately

Approaching a dealership without doing your due diligence on the car finance option you want to use can leave you in a worse position. The salesperson may try to persuade you into using their finance option which might not have the best terms out there.

Look around for the best deal on car finance that works for you, whether that’s on PCP rates or hire purchase contracts. There are also options out there for bad credit car finance, meaning that anyone can likely find a car finance product that suits their situation.

Fight for a fair trade-in price

At the end of the day, trading in your current car to finance your new car purchase can be tough. You won’t get anywhere close to what you originally paid for the car, so it’s more about getting what you feel is a fair price for it.

Many salespeople won’t want to let the trade-in price risk ruining what is essentially a done deal, so make sure you push for a better trade-in valuation if you think your car is worth more.

Again, doing research beforehand can give you a better idea of what your car could be resold for by the dealer and use that to your advantage. If you feel like you’ve negotiated a price that you’d happy with, accept it and you’ll save a good portion on your new car purchase.

The greatest tool in your arsenal when shopping for a new car is online research – the more information you have at your disposal, the more informed your decisions can be. There are more areas that can help you save money, but these four are a solid starting point when considering where you can save on your purchase.