Shopping for a Car: Four Tricks of the Trade to Save You Money
When it comes to making a large purchase, a home tends to be one of the largest that comes to mind. After a house, however, a car or truck is one of the next biggest purchases many people ever make. For some people, purchasing a vehicle is quite stressful. Thankfully, there are several tips that can be followed to help ensure money will be saved. Think about it. By saving money on a car, it becomes easier to pay the rest of life’s never-ending bills.
Tip 1. Buy a Used Vehicle
There is absolutely no sense in wasting thousands of dollars buying a brand new car. Within the first three years that a car has been driven off the dealer’s lot, it will depreciate at least 45 percent. It is wise to let someone else pay for this lump sum of wasted money. In fact, by buying a car that is three years old, with low mileage, a person is likely to save anywhere from ten to 20 thousand dollars on a car.
Tip 2. Pay Off the Loan in Two Years
For those who have to obtain a loan to buy a car, it is best to pay off the loan within at least two years. In doing this, a ton of money in interest can be saved. If the loan cannot be paid off in two years or less, it is probably best to reevaluate the car that is being purchased. For example, if a $15,000 loan can’t be repaid in less than two years, it may be wise to consider purchasing a car that costs only $8,000.
Tip 3. Pay Cash
When possible, it is best to purchase a car by paying cash. A person will save much money by not having to take out a loan. In fact, if a person was to take out a loan for five years with interest totaling $800 every year, by paying in cash, a person will save $4,000.
Tip 4. Treat the Car Nicely
By treating a car nicely, it will tend to last for a long period of time. Being nice to a car means being easy on the brakes, getting the oil changed every three to six thousand miles, and performing regular maintenance on it. And don’t forget about insuring the car in case of an accident or fender-bender. You can check out insurance companies like worldclimate.com California insurance from the convenience of your home. For the most part, a car can last a person anywhere from five to 15 years or more, and the better a car is treated, the longer it will last.
Category: Car Purchase
