Updated for 2024.
Are you in the market for a new car, truck, or SUV? If so, do you have a plan for your next car purchase? Getting a new car is an important financial decision, and simply planning your car purchase beforehand can save you a pretty penny.
One crucial factor to consider is the method that you will use to pay for your new car, whether that’s paying in cash, financing through a dealer, or applying for a car loan through your local credit union or bank.
Let’s go over some money-saving tips that could help you prevent overspending on your next car purchase.
At a glance:
We realize this may not be an option for many people. But if you have the means, paying in full for your car using cash upfront can save you a significant chunk of money that you would otherwise spend on interest alone. Not only will you own your new vehicle outright while avoiding monthly car payments, but many dealerships may also offer cash discounts on the purchase price of a car as incentives to their customers.
It may be tempting, but purchasing the first car you look at is not always a good idea. If nothing else, shopping around at several car dealers will at least give you an idea of what you can expect to get for your price range — and an advantage when negotiating vehicle price, too.
Before you head out looking for a car, private party or dealership, ensure you know the market value of the vehicles you want. The easiest way to do this is to research the Kelley Blue Book® price for each make and model you’re interested in. You may also want to check out the Consumer Report® for more information about the car.
You might want to purchase a used car rather than a brand-new one for several reasons. By purchasing a car a few years older, you’ll get more of the features you want at a lower price. You’ll also have to worry less about depreciation. According to Kelley Blue Book, many new vehicles lose up to 20% of their original value within the first year. The depreciation rate isn’t as extreme when you purchase a preowned car — even a 1-year-old vehicle can save you a significant amount of money. Many used cars also come with warranties these days, making it an even more attractive option.
It never hurts to know how to negotiate the price of the car, especially if you notice any minor flaws. Often, you can lower the cost by at least several hundred dollars by simply knowing the car’s fair market value and being willing to walk away if the price isn’t right. This applies to both car dealerships and private sellers.
Another good negotiation tip is to focus on the car’s total price. A salesperson will sometimes try to gauge how much of a monthly payment you can afford instead of your total budget, which can lead to you spending more money than you anticipated.
Many dealerships will allow you to trade in your old vehicle for a credit toward the new vehicle sale, and some will even accept a trade-in for the down payment. Make sure you know the fair trade-in value of your car before going to the dealership to give you more bargaining power. Remember, your trade-in price can be negotiable, too.
To save money when buying a car, it’s essential to make sure you factor in the entire cost. This includes the interest rate, extra features, sales tax, auto insurance and registration fees. Although it may seem like a good deal when you simply look at the base monthly payment, you may get charged more once the interest rate is factored in. It also helps to know ahead of time the type of upgrades you’re interested in. This way, in the excitement of buying a new car, you won’t be swayed to purchase unnecessary up-sells and add-on packages.
Never start your search for the best car with the mindset that you’ll drive home in a new vehicle that same day — this is one of the worst things you can do when trying to save money while buying a car. It can lead to an impulse purchase, which is almost always synonymous with spending more money. Even if you find something you really love, take the car out for a test drive knowing you aren’t going to buy it today. Being patient and willing to walk away from a sale can be a powerful negotiation tactic you can use to your advantage.
Just like different dealerships will have varying prices on their vehicles, you will find financing options that are better than others. Try shopping around for auto loans to ensure you get the best rate, and plan on having at least three options from different lenders to compare before settling on one. Being preapproved for a car loan is another plus — it gives you a budget to stick to and can even help you negotiate. For instance, the dealership may offer you an even lower rate to use their in-house financing.
Always read the fine print on car loans to ensure you won’t be penalized for something like paying off your car early. Make sure you understand your loan terms and interest rate. Look for what add-ons, if any, are included in the loan contract to ensure you aren’t paying for extra features you don’t even want.
Ultimately, you will likely find it easier to save money during the car-buying process if you already have a well-thought-out plan in place. Purchasing a vehicle is a significant financial decision, especially if you intend to make loan payments. Know the value of your current car, the car you want to buy and your budget before you go to the dealership and be prepared to take your time negotiating and comparing prices from other dealerships or private parties. With some diligence and patience, you can turn your next car purchase into a savvy investment without breaking the bank.
Oil changes are a necessary part of maintaining your vehicle. If you don’t change the oil at the recommended intervals, your engine will suffer irreversible damage.
Oil changes costs add up over time, though. The good news is there are several different ways to cut oil change costs. Here are the best ways to save money on oil changes:
This is perhaps the most obvious way to save money on oil changes. Dealerships, independent shops, and oil change places offer good oil change deals once in a while. Some places even offer “happy hours”. Here are several ways to find oil change deals in your area:
Here’s a secret: oil changes are usually more expensive at dealerships. So if your dealership isn’t offering a great deal on oil changes, look elsewhere. You’d likely get a better price at an independent shop or an oil change place.
Keep in mind, though, that not all places offer quality services. You may get stuck with an inexperienced technician working on your vehicle. If the technician messes up, your engine will pay the price. To avoid this scenario, read online reviews before picking a place. Or you can handle the oil changes yourself.
Are you reluctant to pay for labor for a simple job like an oil change? Do you have some time to kill? If your answer to both questions is yes, the DIY route is up your alley. It’s a simple and straightforward job. You would need the following items:
Be sure to dispose the oil correctly. Never, ever dump used motor oil (or any other automotive fluids, for that matter) in the following places:
Also, don’t ever send your used motor oil to the landfill.
Motor oil is extremely harmful to the environment and local wildlife. You could get in trouble for disposing of used motor oil incorrectly. The right way to dispose of motor oil is to find a recycling center that accepts used car fluids. Anyplace that sells motor oil is required by law to accept oil for recycling. Next, follow their guidelines for bottling up your used motor oil. Here’s a useful guide on recycling motor oil the correct way.
Yes, reusable oil filters are a thing now! A quality reusable oil filter is made out of durable metal. Lifetime reusable filters will outlast your car. Reusable oil filters cost more upfront, but you’ll save money in the long run. Disposable oil filters may be affordable, but they come with a bag of issues that can negatively affect your engine. Read this post to find out why reusable oil filters are a much better investment than disposable oil filters.
PurePower! is a leading brand for reusable oil filters. You’ll get the best value out of a PurePower! lifetime oil filter. Find out why here.
Synthetic oil is more expensive than conventional oil. Yet, it’s worth every penny because:
Using synthetic oil is an example of paying more upfront but getting more value in the long run.