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
