First-time Shopper’s Guide to Saving Money while Buying a car

Shopping for your first car is confusing especially if you do not know what to consider. If you come straight to car dealers, you will deal with a pushy and sometimes overbearing car salesman. This can be frustrating and more confusing.

To reduce the amount of stress, frustration, and confusion involved with purchasing a new car, you need to be armed with the right knowledge. With this, you can surely find Cars for Sale in Melbourne and save money at the same time. Here’s a quick guide for you:

Determine your budget

When you finally decide to buy a car, the first thing that comes to mind is the cost. It is imperative that you determine your budget at the onset so you will know what price range to focus on. To save time and energy trying to find the cheapest cars, you should consider the following things:

• Smaller engines are cheaper: you will come across 1.0-liter or 2.0-liter engines. This is not about horsepower but burning fuel. A large engine will burn more fuel compared to a smaller one. It is crucial that you consider fuel economy when deciding.
• Smaller cars are cheaper to cover: when it comes to car insurance, smaller cars are cheaper to cover. This means that size can influence the cost of car insurance.
• Petrol cars are cheaper: petrol cars are cheaper compared to diesel cars. However, diesel engines are preferred because it is more economical.  
• Manual cars are cheaper: if you consider manual cars, it will be cheaper compared to automatic gears. Automatic cars are expensive because they do extra work particularly stalling at traffic lights.
• Hybrid cars are cheaper to run: when it comes to cheap running costs, hybrid cars are an excellent choice. However, these cars tend to cost more when you buy it.

Know the best time to buy

You should also know the best time to buy a car to find a good deal. Keep in mind that one way to slash cost is to buy at the right time. Remember that dealers have targets or goals to meet – usually every quarter. This makes the end of March, June, September, and December the perfect time to buy cars. Click Here to know more.

However, if you buy from a private seller, there is no such thing as timing because they do not have targets to meet. If you are buying this way, you have to keep an eye on prices so you can negotiate well.

Look into financing options

Many people consider financing from the car dealership. You can also consider loans obtained from credit unions and banks. At the end of the day, you should look for lower loan rates. To be successful, you need to compare at least three institutions and decide from there.

Negotiate the terms

Many car dealers offer attractive monthly payments but you should not be misled. You have to negotiate if you want to get the best terms.  When it comes to negotiation, you have to base it on the purchase price of the car, not the monthly payment. There could be many extra hidden costs included in the price so it is crucial that you ask about it.

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