Car shopping: Tips to save money and how to stop reducing its value
Car has become one of the important basic requirements in the life today. We need to travel from home to office every day to earn dollars and a car is required to make our journey comfortable. Also, in some cities, the public transport system doesn't connect the entire city and you have to rely on your own vehicle.
Read this article to know how you can save your precious dollars while buying a car of your choice. You need to look after your car so that its value doesn't depreciate fast.
Sometimes taking a vehicle on rent makes good sense instead of buying a car. But, you need to know what to consider while renting a vehicle.
Let's discuss these things one by one.
Car shopping - 6 Tips you should follow
Are you looking for a good car that fits comfortably in your budget? Here are a few tips, which you can follow to buy a suitable car at an affordable cost.
1. Calculate your affordability:
Always assess your financial situation and calculate how much you can afford, before you start looking for your dream vehicle. Compute how much you have to pay on interest payments, on the gas, etc. It will help you choose a car.
2. Always test drive before buying:
Do not buy a car without going for a test drive. By doing so, you get to know if there are any problems in driving the car. You should also inspect the vehicle carefully. Check out whether or not there are odors and any kind of stains in the upholstery.
3. Ask relevant questions to the car dealer:
You should ask certain questions to the car dealer before buying the vehicle of your choice. You should ask whether or not the car has been involved in any accident, the history of the car, etc. If you're buying the vehicle from the owner, then always ask the reason behind selling the car and has there been any problem with the vehicle.
4. Get help from a mechanic:
After you short list a car, always take the vehicle to a mechanic for the final checkup. The mechanic will be able to detect if there's some problem with the car, which may not be visible to you. If the seller refuses to involve a mechanic in the procedure, it will be wise decision to not buy the car.
5. Get a copy of the history and safety report:
Irrespective of whether you're buying the vehicle from a car dealer or the seller, ask for the history and safety report of the car. Think twice before purchasing the vehicle if the seller or the dealer refuses to give such a report.
6. Negotiate on the price:
Do not settle for the price quoted and always negotiate on the price of the vehicle. There is no harm in asking; you never know the dealer/seller might reduce the price to some extent. Also discuss the financing plan if you're buying the car from a dealer. You can compare the current market price as it will help you negotiate on the price.
You can consider buying a car during the month of December. This is because, during this time, most people remain busy looking for online shopping deals. So, the car dealers offer discounts on cars in order to entice the customers to buy new cars. Another great time for buying a car is during July to October as the car dealers want to clear space for new car models. So, try to take advantage of these two times in order to buy your dream car at a comparatively lower price.
Eliminate costly features: Experience a super new car purchase
When it comes to buying a new car, there are lots of factors that you should decide before going to a car show room. You want to get the new updated look with lots of new features in your car. But have you ever thought that some features will cost sky high price but will be used less? So, if you really want a new car sticking to your budget, then you should decide which options are less valuable and can avoid to reduce your car cost.
Check out which options you don't need in your new car before hitting up the dealer's showroom.
Internet service in car
Internet data plan (3G, 4G) features are now in demand even in vehicle. But, in my opinion, when wireless Internet connection on smartphones is so easy to access, then it doesn't make sense to spend thousands of bucks for Internet access on a car.
Streaming video systems in car
Streaming video system or DVD player are great source of fun specially for children. But if you use portable DVD player or a tablet computer with Internet connection, you may experience fun without a hardwired system in your car. You can easily eliminate costly DVD player, Rear entertainment systems, TV, LCD on your new car and save hundred of bucks.
Navigation system in car
GPS system is very useful to experience a safe and hazard free drive. But, don't you think these pricy additional GPS system with several features charge extra money? So you can reduce extra cost by opting portable GPS system instead of built-in GPS in your new car. You can download navigation app in your smartphone and use.
Power-folding seats-and power-closing doors
Most of vehicles are offering power controlling assistance for seats, doors trunks and tailgates including window and mirror. These feature are offered for your luxury and comfort but you can easily skip these options to save lot of money as power folding third row or second row are not a necessity for you. So, think before hand if these options are mandatory for your need or you can skip and save money.
Leather stuffing seats
Leather seats are much more comfortable and look better. But you can easily get the same feel and look within your budget! So, why should you pay so much for leather upholstery? Just go for high quality synthetic leather cover to eliminate high cost and get a better look and comfort as well.
Larger wheel will change the overall look of your car but it also cost a large amount. Larger wheels means expensive tires. So, think twice before installing larger wheels. You don't really need 20 inch wheels for a standard family car. So, never spend extra bucks to the dealer for these.
Say "no" to longer car loan
Before considering all points you should think this point before purchase a car. Are you going to purchase a highly expensive car paying 6 year car loan? Buy a car which suits your need and also your budget. Try to opt a car loan which will off in less than four years.
Lastly, go for the options which are really valid need for you. Try to make a wish list of features for your need and visit your dealer to experience a better deal. Thus, you can simply avoid dealer's trap and avoid extravagant expenses on your new car.
How to save money on buying used cars
In this modern time, there is no problem in buying used cars. Unlike past, used cars can stay for long time. Buying an used car will save you lot of money without compromising on the comfort of having a personal vehicle.
Here are a few tips to buy an used vehicle.
Understand your needs
Before you shop around the market to buy an used car, you should understand the purpose for which you are buying the car. Select the size and type of the car accordingly. Don’t just buy a car by getting tempted with its price tag. Getting the car at low price is always good but, you have to consider your needs too. If you are planning to use the used car for family purpose, it is always better to choose mid-size car or large one rather than the compact model.
There is no need for you to make a single down payment even if you are buying a used car. You can take the help of the loan. There are many financial institutions that offer loans to buy an used car but, you should keep the term of the loan very short to pay less interest. You will get the loan at good interest rates if you are government servant when compared to common public.
Inspection of the car is very important when you buy used car. You have to make sure that the car is in good condition before purchasing. Rather than choosing the expensive used car inspections, get the car inspected by a friend who is a mechanic. This way, you can save a good sum of money on purchase of your used car.
Check for wear and tear items
Generally used cars have some worn out items like broken glass, exhausted tires, burnt bulbs. Check for all these items because they will cost you an additional amount on purchased price. If you find any wear and tear during your inspection, you can ask the dealer to kick of the price of the used car by few dollars compensating the damage.
Prefer to purchase the used car with private party rather than the dealer to escape the dealer charges quoted by him on the used car. Every dealer of the used car certain percentage of the amount as dealer price on the used car. You should buy the car at the dealer only when the age of car is not more than one or two years. These cars purchased through dealers will still have warranty on them. Apart from that, it will be certified as used car which implies that the car has undergone extensive multipoint check to make sure it is like new. Though you cannot escape from the dealership price on the used car, you will get more for the money you spend.
5 Ways you may be reducing the value of your car unknowingly
It is a known fact that a car always depreciates in value. However, committing certain mistakes may reduce the value of your car more. Here are 5 ways you may be reducing the value of your vehicle, unknowingly.
1. Having high mileage on your car:
You might have to drive for long distances to go to your office, or you might like to go for long drives. However, this might lower the value of your car. This is because high mileage usually lowers a car’s value. Therefore, if you want to sell your car at a higher price, then try to not drive more than 10,000 to 15,000 miles per year than the recommended mileage. High mileage might push the car out of the warranty given by the manufacturer, which in turn, will reduce your car’s value. Therefore, to go on a vacation, you might think of renting a car of your choice.
2. Opting for an uncommon color for your car:
You might want your car to stand out in the parking lot, which may make it easier for you to locate your car. However, painting your car with an uncommon color may reduce the value of your car to the future buyers. This is because, not everyone will want a car that is painted yellow or green. It is a well-researched fact that people usually like to buy cars with generic colors, of which silver and white top the list. Therefore, think twice before you opt for an unusual color for your vehicle.
3. Not maintaining your car regularly:
If you are thinking that car dealers cannot make out whether or not you had maintained your car regularly, then you are wrong. You should always make oil changes and other maintenance work, on time. It is better for you to know that a good technician can check the brake fluid, engine oil, etc. and can make out whether or not the oil changes were done on time. Along with it, always keep all the receipts of the maintenance work you had done, so that you can produce them when you want to sell your vehicle.
4. Not taking your car for wash at regularly:
A car which looks good automatically increases its value. Washing your car is as important as changing the oil at regular intervals. You should wash your car regularly. Moreover, there are certain coats which can save the vehicle from harmful damage of severe weather conditions. It is better to wash your car once in a week or once in two weeks depending on where you live and the weather conditions and you should give wax coat once a month.
5. Smoking cigarettes in the vehicle:
People usually do not like to buy a car which smells cigarette or has pet smells. You might not know that these smells usually linger in the car for long and it comes to immediate notice of a person who is not accustomed to such smells. Moreover, the upholstery often absorbs such smells which is difficult to get rid of. So, try to not have any stains and smells in your car and neutralize the smells, if there's any. Also, if you carry your pet in the vehicle, then remove pet hair before you try to sell the vehicle.
Along with above, try to not make modifications which do not go with the standard features of your car. This is because a person selecting a car will usually want the features that come along with it. So, follow these tips so that you can get good value for your car, which in turn, will help you maintain your financial standard.
Rental car: 4 Things you need to consider to save money
It is usually cheaper to rent a car when you go on a vacation. Do you know the reason behind it? This is because the rental car companies buy the vehicles in bulk in a much cheaper rate and sell them after a short period. In the meantime, they offer these vehicles at rent to make profit.
However, you might be paying more on your rental car than what you're supposed to pay. Have a look at the following things which you need to consider while taking a vehicle on rent.
1. Do not opt for class upgradation:
You may have come across this situation - your car rental company asking you to upgrade to a big car since you have quite a lot of luggage. If you do not agree to their proposal, then the company might provide you with a full-size car where your entire luggage will accommodate.
2. You may not have to buy damage waiver insurance:
Usually the rental car companies offer insurance coverage named 'damage waiver' insurance. Before going for this, check out whether or not your own car insurance policy offers this coverage without any extra cost. If you have this coverage, then you may save paying about $26 per day, which otherwise you'd have to pay to the rental car company.
3. Check out how you are paying for the rental:
Your credit card company might offer rental car insurance; however, do you know that it is valid only if you pay through that card? You need to pay the base rate with that credit card in order to get the privilege. Therefore, it is better to not redeem your points or miles in exchange for a free rental car, since the extra insurance coverage you will require, will reduce the value of your award.
4. Do not take GPS from your rental car company:
You might have to pay about $12 per day to rent a GPS (Global Positioning System) from your car rental company. The same thing goes for your car seat as well. So, do not rent such things from the company and buy one instead. So, if needed, always carry such things with you in order to save significant dollars.
Therefore, next time you rent a car, carefully consider these things so as to not be a victim of these sales pitches. This will help you save significant amount of your hard-earned dollars. Moreover, also shop around and compare the rates with various rental car companies to get the best deal. So, while visiting a place, browse through the internet and have a talk with the rental car companies in that area, so that you can comparison shop and choose the company that is best suitable to you.