How to Buy a Car – and Actually Save Money

Is your current car on the fritz or have you been eyeing that shiny new Jeep you see parked at a dealership on your way to work every morning? If you’ve been hesitant to buy a new vehicle because you’re worried about it costing too much, here are some ways that you can get the car you’ve had your eye on while still saving money.
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Get Pre-Approved

Before starting your search, you should get pre-approved for a loan. It’s important to know what limit you can qualify for and match that up with your monthly budget. It has been estimated that your total monthly auto expenses should not exceed more than 10 percent of your yearly income. This includes the loan, insurance, maintenance and interest.

Sell Your Current Car

Many times, the dealerships will ask if you will be trading in your vehicle. Typically, you can get more for the auto if you sell it privately. This may cost you some additional time to fix anything major with the car, as well as listing it in the local newspaper or online classifieds.

Shop Around

You are your best advocate when it comes to finding and buying your new car. Don’t make any decisions right away. A smart way to start looking is by searching the average value of the car you are wanting. Look at reputable sellers online to see what the cars are typically going for. Be sure to compare the options, MPG and other features that affect the price.

New to You Is Often More Valuable

The minute a car is driven off the lot, it loses a significant amount of value. Consider buying Certified Pre-Owned vehicles to save yourself hundreds or thousands of dollars.

Be Wary of Extended Warranties

Many dealerships will push heavily for you to have an extended warranty because this is how they make a large portion of their money. Many times, these extended warranties pale in comparison with the manufacturer warranty. They are usually very expensive and do not make it worth your dollar in the long run.

Speak with an AbbyBank consumer loan officer today to check rates or see what your “Pre-Approval” amount is. You can also visit our website to learn more about your options.