Purchasing a new car is the second biggest expense for most people besides a house. It’s a decision you have to give some serious thought to. You don’t have to have a bank account that’s bigger than Bill Gates’s to buy a new car. There are a number of ways to affordably purchase a new car.
Let’s take a look at some of those options.
1. Save Up
If you want to do it with no fuss and no strings attached, preparing a savings plan and saving up until you can afford a new car is the way to do it. It involves taking the longest amount of time, but at least you won’t have any debt come the end of it.
2. Take Out a Bank Loan
Banks regularly subsidise people who want to purchase a new car. Just like with mortgages, speak to your bank manager and see what financing options are available to you. Taking out a bank loan is ideal because the interest rates tend to be reasonable and can be paid over a long period of time.
You can also use companies like the money hub for a quick cash fix.
3. Bargain Online
If you can’t get an affordable car in your area, see what you can get in another area. It’s becoming increasingly common to bargain online. If you’re willing to travel, it can be cheaper to buy a car that’s not in your home area.
In some rare cases, importing a car from abroad can turn out to be cheaper.
4. Pit Dealers Against Each Other
Dealers are usually willing to compromise if they can sell a new car. They generally have a lot of wiggle room, so they can still make a profit even by giving buyers a big discount. Make them compete against each other by making it clear you’re considering multiple dealers.
If they won’t budge, send them a message with your feet.
5. Rent a New Car
You don’t have to buy a new car outright. Act like your car is a mortgage and rent a car. Many companies are offering you the chance to own a new car by paying a small rental fee every month. You won’t own the car, but you can drive the car.
The beauty of this is flexibility. As soon as you want a new car, trade the car in and rent a new one.
6. A Car on Credit
This options works exactly the same way as a mortgage. Choose the car you want and pay a little towards it every month. In a few years you will own the car outright and will be able to do whatever you want with it.
7. Don’t Buy on Impulse
When it comes to buying affordably, the best way you can save money is to not buy on impulse. Impulse buys are the biggest reason why people lose out. Do your research and give yourself some time to think about whether you want to purchase this car or not.
Think about all these options before you come to a final decision!