Some people will say that buying (and running) a car costs too much money. While this is true to some extent, as cars can cost a considerable sum of money to buy and maintain when compared to other products – but they don’t always have to cost you a fortune. And some people, through circumstances such as location, vocation and lifestyle choices, have no option but to own a vehicle. Luckily, buying a car doesn’t always have to cost you an arm and a leg. Let’s explore some frugal finds and learn how to buy a car on a budget.
Look for Deals
Did you know that dealerships regularly run car offers? These are sales campaigns where prices are slashed. For example, a plate clearance usually runs when the newer models are coming in soon, and dealerships are looking to offload last years’ stock. End of financial year sales also offers some serious savings.
So if you’re looking to buy a car and want to save some money, be patient and wait for a plate clearance or end of financial year sale. You’ll be able to save thousands off the purchase of a new car.
You don’t always need to buy a brand new car – especially when you can pick up a great deal on a used automobile. No, we’re not recommending that you head to the dodgy brothers’ car yard and pick up any old rust-bucket. Always stick with a reputable dealership, but don’t neglect the used section. Chances are you can pick up a relatively newer model with low mileage for a steal.
Shop Around for Finance
Unless you’re buying a car outright, chances are you’ll need to access some personal finance to fund the purchase. You’ll need a deposit, usually a certain percentage of the purchase price. While some lenders offer no deposit finance, this means you’re paying back more principal of the loan.
Different lenders will offer different terms and conditions to their loan, including different interest rates. A lower interest rate means lower repayments, which is great if you’re on a budget.
A fixed-rate loan might be a good idea too. This means that your interest rate is set for the duration of the loan, as are your repayment amounts. But this means you usually can’t make extra repayments, so you can’t pay off the loan earlier.
Look for a Fuel Efficient Model
Aside from the purchase price, one of the most significant expenses of running a car is the fuel costs. When shopping for your vehicle, do your research into fuel economy. Don’t solely rely on what the manufacturer specifies either, as these ratings are usually taken from ideal driving conditions. Do some research on car sites, forums and ask your friends and family who may have the model you are considering what their experience is.
When buying new, you can often find inclusion deals that will save you money down the road. For instance, some dealerships will offer capped price servicing, or even some free servicing, which can save you hundreds a year. Others will provide free roadside assistance or extended warranties. These can all save you significant amounts over time.
A Cheap Car Conclusion
Look out for special offers and deals, and you could save thousands when buying a car on sale. Consider a used model to save money, and remember to shop around for your car loan. Look for a model with excellent fuel economy, and consider what inclusions come with a new car. Follow these tips for a frugal find.