Six ways to save on your next car
Nathaniel Sillin | 8/24/2016, 9 a.m.
Looking for an eco-friendly subcompact or the thrills that come with a sports car?
Perhaps the practicality of a sedan or a spacious SUV better fits your needs? No
matter what type of vehicle is calling your name, planning your purchase can help
you save as much money as possible.
Consider these six savings tips while shopping for your next car. Whether you're
concerned about upfront, monthly or long-term costs, there's something here that can help you.
- Look for a fuel-efficient car. Buying a hybrid or all-electric vehicle rather
than a gas guzzler could help you save money on long-run fuel costs. Plus, state
and federal tax credits might give you some
additional upfront savings.
If you're sticking to a fully gas-powered car, you can still save money by choosing
a fuel-efficient model. Once you pick a class of car and determine your budget the Environmental Protection Agency's www.fueleconomy.gov miles-per-gallon rating for each vehicle to estimate and compare the monthly fuel costs.
- Compare the long-term costs of different cars. In addition to fuel, consider the
long-term costs of maintenance, repairs, insurance, taxes, depreciation, fees and
To help you with the calculations, Kelly Blue Book has a 5-Year Cost to Own tool
that lets you compare long-term costs for 2015 and 2016 models. Edmunds's True Cost to Own® Tool does a similar thing for 2010 and newer models.
- Buy a "new-to-you" car. Buying a used car rather than the equivalent brand-new model can usually save you money. However, you'll want to look at each used car on an individual basis. Consider how it feels during a test drive and its history if you can access it.
You may be able to buy a warranty for your used car, or you could purchase a
certified pre-owned (CPO) car from a dealership. Dealers inspect CPOs before selling
them with a manufacturer's warranty. If you're not buying a CPO, you could hire a
mechanic to perform a pre-purchase inspection. It's not a guarantee, but the
inspection can help ensure you won't get caught off guard by any unexpected issues.
With the right deal on a used car, you might be able to buy the car outright instead
of financing the purchase. By paying cash, you avoid accruing interest, making
monthly payments and worrying about loan-origination fees.
- Negotiate the purchase. Most people don't enjoy haggling with a car salesperson,
but even non-confrontational negotiating tactics can help you save money.
For example, once you pick a make and model, you could shop online for available
vehicles at nearby dealerships. Reach out to each dealer's internet sales team and
ask for their best total cost, inclusive of taxes and fees.
Take the lowest offer and ask the other dealers if they can beat it. If one of them
can, take your new lowest quote and again ask the rest of the dealers to go lower.
Keep going until you get a price that works best for you.