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Shop for your Dream Car and Save Money

The Save Money Hound provides some top tips on how to save money when you go shopping for a car.

If you are going to buy a new car, this will definitely cost you more money compared to buying a second hand car. Keep in mind that as soon as you drive that car out that door, the value of your car will drop like a rock after paying for taxes and drive away costs. Never mind that you will be worried about every scratch and dent that your prized new car might acquire.

If you want to save money and still get a decent car, consider buying a second hand car, preferably around the 1 to 2 year vintage. That way you can get the benefits of having a reliable and relatively new car, that is still covered under a new car warranty, but without having to pay the extra costs that comes with buying a new car.

Make sure you have a car inspection of your new used car. For the dollars that you saving, you don’t want to be getting a lemon! Although the car may have only had 1 to 2 previous owners, it is best to get a car inspection to ensure there are no major mechanical faults.

Decide on what type of car you are intending to purchase ie. a small economical car or a gas guzzler. Be mindful that saving money on a car not only applies to your big car purchase but also your ongoing maintenance costs.

If one of your goals is to save money on annual car upkeep costs with the likes of increasing fuel costs and car insurance, then consider whether buying a smaller car which still adequately meets your needs might be a more economical way to go.

Research how much you would expect to pay for your car. A reference book like The Red Book is a reliable guide for second hand car prices. Check The Red Book to see how much the second hand car would cost for the make, model and year you are interested in.

When buying through a car dealer, check for hidden costs. The car dealer might give you a deal on the cost of your new dream car but then reduce the amount for your trade in. Compare amongst different car dealers to get the best deal. Consider any after sales service or special deals that you can negotiate. Many car dealers are offering free car registration and extended new car warranties and savings in drive away costs.

Other Save Money Hound articles

How to save money for a car Part 1

How to save money for a car Part 2

Throw away the car and save money Part 1

Throw away the car and save money Part 2

Don't get ripped off by car dealers

How to save money on gas

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Don't get ripped off by car dealers

It’s taken you months to get to your goal, but you have finally done it. Give yourself a pat on the back. You have saved enough money to buy that dream car and you are ready to go shopping for that new car.

But where do you start? Buy new or second hand? Buy privately, through a car dealer or online?

Save Money Hound provides some tips on things to look out for when shopping for a car and how you can save money.

If you are going to buy a new car, this will definitely cost you more money compared to buying a second hand car. Keep in mind that as soon as you drive that car out that door, the value of your car will drop like a rock after paying for taxes and drive away costs. Never mind that you will be worried about every scratch and dent that your prized new car might acquire.

If you want to save money and still get a decent car, consider buying a second hand car, preferably around the 1 to 2 year vintage. That way you can get the benefits of having a reliable and relatively new car, that is still covered under a new car warranty, but without having to pay the extra costs that comes with buying a new car.

Make sure you have a car inspection of your new used car. For the dollars that you saving, you don’t want to be getting a lemon! Although the car may have only had 1 to 2 previous owners, it is best to get a car inspection to ensure there are no major mechanical faults.

Decide on what type of car you are intending to purchase ie. a small economical car or a gas guzzler. Be mindful that saving money on a car not only applies to your big car purchase but also your ongoing maintenance costs.

If one of your goals is to save money on annual car upkeep costs with the likes of increasing fuel costs and car insurance, then consider whether buying a smaller car which still adequately meets your needs might be a more economical way to go.

Research how much you would expect to pay for your car. A reference book like The Red Book is a reliable guide for second hand car prices. Check The Red Book to see how much the second hand car would cost for the make, model and year you are interested in.

When buying through a car dealer, check for hidden costs. The car dealer might give you a deal on the cost of your new dream car but then reduce the amount for your trade in. Compare amongst different car dealers to get the best deal. Consider any after sales service or special deals that you can negotiate. Many car dealers are offering free car registration and extended new car warranties and savings in drive away costs.

Other Save Money Hound articles

Throw away the car and save money Part 1
Throw away the car and save money Part 2
Save Money for a car Part 1
Save Money for a car Part 2
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Last Updated on Tuesday, 22 September 2009 22:51

Throw away the Car and save money Part 2

Every thought about saving money by doing away with the car. Radical concept? Wouldn’t dream of it? Don’t think you can do it?

In the previous article “Throw away the Car and save money Part 1”, the Save Money Hound discussed the possibility of throwing away your car and other options to consider instead of owning a car. The Save Money Hound also looked at trends and reasons why people might be choosing to do so.

In this article we take a look at where we can save money when we throw away our car.

The costs of running a car usually take up a significant part of a household budget. If you have more than one car in your household, consider whether you could get by with just one car rather than 2 cars.

Do a trial and see whether you can get by without using your car. The decision doesn’t have to be final. Just give it a go and see what happens!

So how much money could you actually save by not having a car. Depending on the type of car you have, this could amount to shaving off several thousand dollars every year.

Here are some of the areas where you will save money if choose not to have a car.

Purchase costs

Purchase costs in buying a car
Hire purchase costs and borrowing expenses if you took out a loan for your car
Opportunity cost of buying a car

Annual maintenance and repair costs

Car servicing
Maintenance
Replacement of car parts eg tyres.
Unexpected repair costs

Operating costs of running your car

Fuel Costs – petrol, diesel etc.
Car Wash
Insurance
Driver’s licence
Third party insurance
Comprehensive insurance
Vehicle registration
Auto car membership
Car break down service membership
Depreciation – loss in value of your car through wear and tear

Other Costs

Fuel conversion of vehicle eg to gas

Now might be the time to rethink the purchase or replacement of your next car. Save Money Hound reckons you could save lots of money by either not having a car or downsizing the number of cars you have in your household.

Other Save Money Hound Articles

Throw away the Car and save money Part 1

How to save money for a car Part 1

How to save money for a car Part 2

How to save money on gas

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How to save money for a car Part 2

Save Money Hound shows you how to save money for a car with some easy tips.

If you have finished reading How to Save Money for a Car Part 1, you will probably have finished your coffee break by now and decided on your dream car make and model. You should now have a better idea what you can afford and have decided on a suitable budget for your dream car. Save Money Hound will put that car budget to the test to check that you have added in extra costs on top on your basic car budget.

Besides the purchase price of the car, you will need to factor in drive away costs, including any taxes and duties, dealer delivery charges and other additional costs. Just for safety measure add at least one to two thousand dollars to your budget for a bit of fat.

If you are looking at more than the baseline model, you will also need to factor in at least a few thousand dollars extra in your budget if you want extra accessories and goodies or if you are eyeing the top of the line model.

If you are trading in you car, do a bit of research to see how much you think you can get for your car. Consider whether you are going to trade in your car at a car dealer or sell privately? Research whether you might save money if you sell your car privately.

So you know what your goal will be to save money for a car. Decide on your time line for when you need to buy your car by. Set yourself a simple goal. “I will buy my new car for a cost of no more than $15,000 by this date”. Work backward with your goal and work out how long it will take you to save money to buy this car.

Consider whether you intend to pay for your car completely by cash or a combination of cash and hire purchase. It is a good idea to pay for your car completely by cash but if is not possible, decide how much you will pay by cash and how much you will borrow.

Is your goal realistic to save dollars by a certain date? Can you afford it? What will you have to give up to buy this dream car? Good luck saving money for that dream car. It will take lots of hard work so start saving now.

Other Save Money Hound articles

Save Money for a Car Part 1
How to save money on gas
Easy tips to save money
How to save money on bills
Top ways to save money

Throw away the car and save money Part 1

Throw away the car and save money Part 2

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Last Updated on Thursday, 10 September 2009 23:32

Throw away the car and save money Part 1

Every thought about saving money by doing away with the car. Radical concept?

Wouldn’t dream of it? Don’t think you can do it?

Not having a car might seem just too hard to do but a lot of people these days are doing just fine without a car. And it’s not just the students who are choosing to do away with the car.

Today, more people are choosing to do away with the car. With the rising costs of petrol and in some countries, the imposition of carbon taxes, sport utility vehicles (SUVs) and 4WDs are out, and more economical and/or environmentally friendly transport is in.

You can save lots of money by not having a car. Think about all the positives. Some of the positives include not having to wash your car, not having to fill up your car often if it is a gas guzzler, saving money on car insurance, car servicing, car repairs, and car maintenance costs. Besides saving money, you can also lessen your stress by not being caught up in endless traffic jams at peak hour.

A lot of people these days for economic and environmental reasons are choosing to do away with a car. Depending on where you live, it is quite feasible to live well without a car. The plus side is that you can use the money you save from not having a car on other things on your wish list.

The top reason most people have a car is that they consider it essential for their commute to work and for running their errands, getting to the shops, and for weekend jaunts.

Consider the options if you didn’t have a car. How would you go about getting to these places? Car pooling with a colleague or neighbour, catch public transport, lease a car, catch the occasional taxi, catch a ride with a friend, ride your bike, get a run around scooter, rollerblade, skateboard, walk.

The options are endless. Perhaps consider pedal power or foot power. Pedal power is on the rise in many big cities with a lot of city commuters getting in to work by pedal power.

Consider renting a car through a flexible car lease arrangement where you pay an annual fee to have access to book a car by the hour. Find your nearest car pod to where you live, rent the car for 1-2 hours and let other people worry about the costs of car ownership, insurance and maintenance.

Other Save Money Hound articles

10 ways to save money

How to save money on bills

Throw away the car and save money Part 2

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Last Updated on Thursday, 10 September 2009 23:27

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