How Financially-Savvy People Go About The Business Of Buying A Car

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Buying a car is never easy. There are so many decisions to make. But there’s no denying that some people are able to make better decisions than others – at least from a financial perspective. Here are some of the ways financially-savvy people go about buying a car.

They Agonize Over Whether They Really Need A Brand New Car

The first thing that financially-savvy people ask themselves when it comes to buying a car is if they really need a new one or not. While it’s nice to have a brand new car, you lose the vast majority of the investment through depreciation soon after the purchase. Did you know that the average car loses more than half its value in just three years?

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This applies almost across the board. Take the Citroen C4 1.6 Vti, for instance. The asking price of the car is a little over $20,000. But the value of the car after three years of ownership is just $7000, so it’s only worth about a third of what it started at. The situation is even worse for the Peugeot Ion. The car retails for nearly $40,000, but after three years, you’ll be lucky to even get 17 percent of the original asking price.

They Shop Wisely For Loans

Used car loans for older cars can vary in price quite considerably. But savvy shoppers always look around for the best deals. They do this by going onto comparison websites and checking which loans are the cheapest. There’s no point saving money by buying a second-hand car only to have to pay higher interest fees in the long term.

They Research The Best Time Of Year To Buy

The time of year you buy your car has a big impact on the price you’re likely to pay. Remember, dealers have their own targets that they have to make, and typically these are based on quarterly sales at the dealership. Business quarters are often the same as calendar quarters, and so the best time to look for a new or used car is at the end of March, June, September and December. These are the times when you’re most likely to get money off, especially if the dealership is behind on its sales. It’s also a good idea to avoid dealerships at popular times, like the day after payday or the weekend. Dealerships are often desperate to make sales on weekdays towards the end of the month to justify their opening hours so this can be a good time to grab a bargain.

They Choose Gasoline Cars

Many people think that diesel engine cars are cheaper to run than petrol engines. But thanks to the cost of maintenance and other factors, gasoline often turns out to be a lot cheaper. Remember, diesel car engines are more complicated, and so they cost more to buy from the dealer.

Manual cars might be a pain to drive, but they’re also a lot cheaper than automatics. On average, an automatic gearbox raises the price of a car by more than $3000.

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