Cars are essential whether you are in the city or in the suburbs of Australia. They save time and are more convenient than taking public transportation. However, car prices have increased lately which makes it more difficult to buy a car these days.
You have to save up quite a bit of money to be able to purchase a car without breaking the bank. Many people buy the car they want and they end up paying much more than what they can actually afford. Here are 6 tips that will help you save money to buy your dream car.
Research Cars First
When you are car browsing, don’t buy the first car you like from the first dealership you find. Compare different cars to know which is truly the right one for you. Research the car you are interested in to know its market value. Compare prices across dealerships to ensure you’re getting the most affordable one. Knowing more about the car you’re interested in will be of immense help in negotiation.
Pay in Cash
If you can afford to, pay for your new car in full. In doing so, you’ll avoid monthly payments and the accompanying interest, thereby saving you a ton of money. For example, if the car’s price is $20,000, you will pay around $24,000 in payments or even more. Additionally, some dealerships offer discounts for paying in cash which will result in your saving even more money.
Look For Financing Options
Paying in cash might not be easy for a lot of people so securing financing for your car is a solid alternative. The interest rate differs according to the creditor and Auto Loans will be part of your life for a couple of years, so choose a loan vendor wisely. Read the fine print to ensure that you won’t be paying any unnecessary penalties.
Trade-in Your Old Car
If you already have a car and you want to buy a new one, some dealerships might accept a trade-in. Taking this approach will shave a big chunk off its cost. What’s more is that you won’t have to look for a buyer, which can take quite a long time. Keep in mind that you will have to pay the rest of the price of the new car.
Downsize Your First-Choice Car
We can be mesmerized by a car that we don’t actually need that bad. Consider the option of settling for a more affordable option. Nowadays, most cars come with the latest technologies so you won’t necessarily be missing out by opting for a cheaper model.
Activate Automatic Saving
There is an option in several banks to transfer a part of your paycheck (that you specify) into a savings account every month. You won’t feel tempted to spend this money as it won’t be available in your regular account. Save enough money each month and in a few months, you might be able to afford a substantial down payment.
Saving to buy a car doesn’t have to be complicated. Knowing where to look and doing your research can save a couple of thousand dollars. Paying in cash might cut some of the car’s price, but if the cash isn’t available, look for reliable financing options with affordable interest rates.
