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Premium styling. Flawless paint. Glistening tires. That unmistakable new car smell. Everything about a new vehicle practically begs you to buy it. When you close your eyes and think about driving your brand-new set of wheels off the lot, it quickens your pulse a little, doesn’t it? Shopping for your next vehicle is a uniquely exciting experience. Until you look at the price tag, that is.
If you haven’t priced cars recently, you may be surprised by the figures you find. According to a 2020 report by Edmunds, the average loan amount for a new car jumped to $33,631, and the average monthly payment rose to $613. Sure, the latest models may be nice, but facts are facts—that’s a lot of money to pay for a car.
Now, before we go any further, if you’ve been saving up for your dream car and figured out how to buy it without demolishing your budget, then by all means, go for it! But if you find yourself in the market for a new vehicle and you want to avoid overspending, we’ve got 5 tips to help you hang onto more of your hard-earned money.
5 Tips to Save Money When Buying a New Car
- Do your research.
- Get pre-approved.
- Shop for incentives.
- Ask for a lower rate.
- Choose a used car instead.
OK, maybe this tip isn’t exactly a way to “get a new car for less,” but it is an excellent way to save money on your next vehicle purchase. Since most new cars depreciate an average of 20% in the first year and nearly 50% after five years, buying a pre-owned vehicle is a smart way to steer clear of that depreciation. It’s also worth mentioning that in addition to their lower up-front prices, used cars usually cost less to insure. Save now. Save later. That’s a pretty convincing sales pitch, isn’t it?
When you’re ready to start shopping for your next car, take advantage of our member-only, concierge car buying service with Auto Advisors. It is a free service that will help you find your perfect car, negotiate the best price, get the most for your trade in and even deliver the vehicle to your home for a completely safe and contactless experience.
And when it comes to the financing and pre-approval, do yourself a favor and contact us here at Power Financial Credit Union. In most cases, we can offer lower rates and more flexible terms than traditional banks or lenders. Thanks to our competitive auto financing programs, a simple phone call can save you thousands of dollars over the life of your loan. Give us a call today. You’ve got nothing to lose—except months of unnecessary interest payments!