How to Afford a New Car Without Breaking the Bank

Did you know that around 17 million new vehicles and light trucks are sold every year in the United States? If you are in the market for a new car but are worried about using up all of your savings, we are here to help. We have put together this guide to share tips on how to afford a new car without breaking the bank.

Read on to learn our top tips.

1. Shop Used

A new car is usually going to be pricier than it’s worth once you drive off the dealer lot. If you want to avoid new car payments and have a specific car you desire, then we recommend shopping around for that specific model that has already been used. Even if the vehicle has been slightly used, the price will drop dramatically.

Buying a used car means that it won’t lose its value as quickly. Used cars depreciate at a much slower rate than a brand new vehicle.

2. Do Not Rush

Unless you are in a bind, take your time doing your research, and don’t rush into your new car purchase. The more time you give yourself, the more you can compare prices and find the best deal out there.

If you are buying from a dealer, take the time to read reviews and compare the vehicle’s price with the current book value of the vehicle.

When you are not in a rush in some cases, you might even find some local competitions where you can get lucky and win a brand new vehicle tax-free. For example, you can check the rules and enter this competition if you qualify to enter.

3. Negotiate

When you take your time doing your homework, take all of the knowledge and use it to your advantage when negotiating the final price of the vehicle you are considering buying. We are not saying to lowball a seller, but instead, know what the vehicle is truly worth and don’t pay more than the value of the car.

Something else that you can use when negotiating is how long the vehicle has been for sale. The longer a dealer or a private seller has a car up for sale, the more eager they are to get rid of it.

4. Get an Inspection

Getting a vehicle professionally inspected can save you money. Although you will have to pay upfront for the inspection, if they find anything wrong, you have more negotiating power on your side. Some mechanics will even offer to do a free inspection for you if you consider or promise to do business in the future with their shop.