When it's time to shop for a new or used car, do some research ahead of time. Following the tips outlined below will help you save money on a new or used vehicle.
Before you even decide which car you want, get pre-approved for a loan from your local bank or credit union. Check several banks for interest rates. Keep in mind that it might be easier getting financed through the dealership, however, most dealerships will add a few extra percentage points — that could cost you thousands over the life of the loan. Once you are pre-approved, you'll know just how much you can afford, how much to budget for payments, and you'll be able to negotiate for a better interest rate.
Don't go in thinking you want one specific vehicle. Choose two or three that you like. Then, contact your insurance company to compare rates on those vehicles. Some may have higher insurance premiums because of the type of vehicle or even the color of the vehicle.
Check the maintenance schedule for each vehicle and compare warranties. Some vehicles will require maintenance more often than others. And, each manufacturer has its own warranty. The same manufacturer may even have different warranties for different models.
Check the Dealer Cost
If you want to be in the best position to negotiate a good price on a new vehicle, visit sites like Edmunds or Kelley Blue Book to find out what the dealer invoice price is — not the MSRP. This will tell you how low you can negotiate on a price. For example, if you are looking at a vehicle that is $25,000 and you offer $20,000, the dealer could tell you that is lower than their cost. However, if you know the invoice price is $18,000, you will be able to negotiate to that $20,000 since you know the dealer is feeding you a line.
A new car dealership will try to add extra fees that you don't need when you buy a new vehicle. For example, you don't need undercoating or an extended warranty. Be careful of those added fees; they may not sound like a lot on their own, but they do start adding up if the salesperson is able to talk you into those add-ons.
Consider Buying Used
Consider buying a low-mileage used vehicle. Often, you can save thousands on an almost-new vehicle. Since new vehicles depreciate so much as soon as you drive them off the lot, getting a used vehicle with low miles not only saves you money on the price of the vehicle, but it also saves you in depreciation.
Visit Chillicothe Truck and Accessories
If you are in the market for a vehicle, stop by Chillicothe Truck and Accessories to test drive any of the used models we have on the lot.