Finding The Right Car For You, At The Lowest Price
This is a sponsored post, however, all opinions are mine.
Finding The Right Car For You
Are you looking for a new car (or your very first car) and feel overwhelmed with the vast array of choices in the market? There are many factors to consider and many questions to ask yourself before even heading to the dealership to browse. This post will provide tips and advice for car buyers looking to identify the right vehicle for their budget and lifestyle.
Things To Consider Initially
First, you’ll want to take into consideration how much you can afford. Make sure you have a budget in mind to help you stay focused on cars you can truly afford. A good rule of thumb that I’ve heard from multiple sources is that your car payments should not exceed 20% of your monthly net pay (or in other words, the total value of all your vehicles should not be more than half of your annual income). How much money can you put down on the vehicle? Remember that the bigger the down payment, the lower your monthly payments will be. Such websites as Cars.com have handy tools that can help you estimate your payments and how much you can afford.
Next, consider your wants and (more importantly) your needs. This includes the many car features that are available to you. Here is a list I’ve compiled that outlines such considerations:
Wants
- Type of car
- Sedan, minivan, compact car, convertible, coupe, etc.
- Make and model
Needs (Focus on these)
- Size / Space – How many passengers will you typically have?
- Transport / Cargo
- Fuel efficiency
- Manual vs. Automatic transmission
- Weather conditions
Features (What are your “must haves“?)
- Luxury
- Performance
- Safety
- Technology
Finally, determine whether you want to buy a new car or a used car. Buying a used car will save you money and it can be hard to tell the difference between a new one if there’s not a ton of miles on it. Consider, too, whether you want to lease or buy (this has been a very hot topic the past few years). A lease allows you to put a more expensive vehicle in your driveway for less money every few years. However, if you tend to keep your car until it quits, leasing isn’t probably your best bet. Owning gives you more flexibility and usually makes more financial sense when interest rates are low.
Research, Research, Research
Now that you have a good idea of your budget and needs, and may even have a particular vehicle in mind, it’s time to do some research and planning. This is a critical step in the process (especially the pricing portion) and much of the information can be found online. Without research, your vehicle purchase is more likely to lead to buyer’s remorse.
Before visiting the dealership, make sure you know the market price of the vehicle(s) you are interested in. Both Kelley Blue Book and Truecar.com provide such information, offering a fair market value price and price range for a new or used car based on what others have paid. Not knowing this information can be an expensive mistake.
Read what the experts and current owners have to say about a certain vehicle to discover it’s performance strengths and how it compares to others in it class. J.D. Power and Cars.com offer such reviews and ratings.
Many websites offer side-by-side comparisons that are also helpful in choosing the right car that meets your needs.
Search the Internet, call around, and visit local dealerships to explore your options that are in your local area. Be sure to compare quotes from multiple dealerships.
How Cars.com Can Help You Research and More
Cars.com is an excellent resource to use when looking for a vehicle, as they offer a ton of information to help make the right choice. A comprehensive array of research tools and services can be found on their website such as the following:
- Find cars for sale/trade and sell/trade your own – Cars.com has a wide selection of new and used cars available for you to purchase. You can even find a connected dealer near you, along with contact information and reviews. Cars.com gives you free, no-obligation new car quotes from up to 3 local car dealers. If you’re selling your own vehicle, they help you to find its current value and offer valuable advice on how to sell it.
- Research car models – Even if you’re just starting your search, you can scroll down to “Browse Models” on the main page (or here) to view models by body style (SUV, sedan, convertible, etc.), make, price, and more. Cars.com also offers side by side comparisons where you can see how cars compare to one another.
- Service and repair – Get a service estimate, find service centers, get repair/maintenance advice, and find information on the latest recalls.
- Expert and consumer car reviews – Cars.com has the largest database of consumer reviews in the car industry. There are also bias free expert reviews on new 2017 models as well as on models dating back many years.
- Videos and reviews – The “Videos & Reviews” section is one of the best sections of the website. Watching the video reviews gives you a virtual dealership experience in a way, showing you the all of features both inside and outside of the car you are interested in.
Don’t forget to check Cars.com to learn more!
Test Drive Before Making Your Final Decision
You’ve done your research and narrowed down your choices. It’s now time for a test drive.
Test driving a car gives you “peace of mind” that you’re making the right decision. Doing so allows you to test out all of the features and get a good “feel” for how the car performs.
You will most likely be driving this vehicle daily, so it’s important that it fits your lifestyle and that you’re comfortable in it.
(5) Other Money Saving Tips
Besides doing your research ahead of time, here are a few other ways to save money in the car buying process:
1] Pay in cash (if you can)
This is certainly not an option for everybody, but if you can pay cash in full you will eliminate monthly interest costs and finance fees. Monthly car payments are also eliminated. Owing money on a car only makes it more expensive, with the value of your car only going down once you drive it off the lot.
You may also be able to get significant discounts by paying in cash, as well as more bargaining power at the dealership.
According to Cars.com, paying cash can also make it easier to sell your car when the time comes.
2] Best times to shop for a car
Month – August is said to be the best month to buy a car, as the highest discounts are offered and incentives are increased. Honorable mention goes to December, when dealerships offer year-end discounts try to get rid of last year’s inventory to make way for new models.
Day of the week – According to TrueCar.com, the best day of the week to buy a car is Sunday, when there is lower consumer demand and higher incentive for dealerships to close out the week with strong sales.
Other – Salespeople may be more willing to offer better deals the last few days of the month, as they work on commission and often get bonuses for the number of vehicles they sell in a month.
3] Visit multiple dealerships
Especially if you’re looking at used cars, be sure to visit at least 3 to 4 different dealerships to see what financing, pricing, and service they have to offer. Don’t be afraid to use dealership competition to your advantage. With the rise of online sales, there’s no longer a need to spend valuable time haggling at a dealership.
4] Buy used
Buying a used car comes down to two main advantages: less depreciation and lower insurance rates.
As mentioned previously, cars lose value as soon as they drive off the lot. Within the first year, some new models can even lose 20-40% in their value.
Also, a vehicle that is worth less money costs less to insure.
Overall, going the used car route is going to save you thousands of dollars with the elimination of fees, subsequent costs, and depreciation.
7 Tips to Buy a Used Car and Avoid Getting Ripped Off
If you instead end up buying a new car, be aware that purchasing an extended warranty upfront often times costs more than the price of repairs during the coverage period. [Reviews.com recently looked into the top 41 extended car warranty services and developed a helpful guide to determine whether or not an extended warranty agreement is necessary, Check it out here.]
5] Don’t negotiate based on monthly payment
One question you are bound to be asked by a salesperson is “How much are you looking to pay per month?” This is because they want to set the price based on the maximum monthly payment that you are willing to pay and will adjust this price to get you the exact monthly payment you’re looking for. However, make sure you negotiate the price, not the car payment!
Best of luck! * Comment below with what things have made your past car buying experiences enjoyable and less stressful *
How Much Car Can I Afford? Answer These 7 Questions Before You Shop
11 Tips for Negotiating the Best Deal on Your Car Lease
Leasing vs. Buying a Car: What a Smart Shopper Should Know
10 Ways to Save Money On Gas
1. Drive Smart + Efficiently
The way you drive has a huge impact on your fuel economy. Here are some tips to consider to drive more efficiently:
- Avoid aggressive driving
- This includes speeding, rapid acceleration, and sharp braking
- Consumer Reports says that going from 55 mph to 75 is like “moving from a compact car to a large SUV” in terms of fuel consumption
- This includes speeding, rapid acceleration, and sharp braking
- When driving on the highway, maintain a steady pace
- Cruise control is the way to go
- Stop idling and turn off your car when you park
⇒ Real-world tests performed by Edmunds.com confirmed that you can improve fuel economy by changing your driving habits ⇐
2. Find The Best Prices
One of the best ways to save money on gas is to use a smartphone gas app to find the best-priced gas stations near you. Apps like GasBuddy, available on both Android and iOS devices, can help you do so. Among other features, you can filter results by fuel grade and sort by distances and price.
3. Properly Maintain Your Vehicle
A properly maintained vehicle will run more efficiently and give you better mileage, saving you money in gas.
→ Keep tires properly inflated to the proper pressure
- The Department of Energy says that this can improve your gas mileage by up to 3% (the difference of a couple cents per gallon)
- This is also important for safety and prevention of tire wear
→ Make sure your car has clean air filters
- This will ensure that the airflow stays at the correct level to mix with the gasoline
4. Lighten Your Load
An extra 100 pounds in your vehicle reduces your gas mileage by about 2%, meaning you’ll pay roughly an additional 3 cents per gallon. Additional weight makes your engine work harder and burn more fuel.
- Avoid carrying cargo on the roof
- Remove unnecessary items from your vehicle – especially the heavier items
- Don’t use your trunk for storage
*Note: Smaller vehicles are more affected by weight than larger ones*
5. Pay With a Cash-Back Credit Card
If you drive a lot, it may be a good idea for you to get a credit card that rewards you for buying gas. NerdWallet.com is a great resource to check out to see if a cash-back credit card makes sense for you.
6. Use Discounted Gift Cards
Look for discounted gas gift cards for gas stations like Mobil, Speedway, Shell, Gulf and more. For example. you could get a gas card worth $100 but only pay $95 for it. You can find discounted gift cards on websites like Raise.com and eBay.com.
7. Fill up at Costco, BJ’s, or Sam’s Club
Membership-based stores like Costco, Sam’s Club and BJ’s Wholesale Club have discounted gas, with prices that are often lower than other gas stations in the area. This savings can vary a lot – in some areas it can be as much as a dime per gallon and in other areas it’s only a penny or two.
Costco beat out major gas chains (as well as warehouse rivals such as Sam’s Club and BJ’s) to rank as the #2 cheapest place to buy gas in the US, according to this 2018 survey.
(For a BJ’s Wholesale Club perspective, check out this article from My BJs Wholesale ⇒⇒ How to Fill Your Gas Tank for Less Like a Boss)
8. Grocery Store Fuel Promotions
Check with your local grocery store to see if they offer any fuel promotions. Supermarket chains like Price Chopper, Kroger, and many others have gas discount programs. Members earn points or get credits when they swipe their loyalty card and get a discount after a certain number of points/credits are accumulated. For a specified dollar amount spent at the grocery store, you’ll get a certain number of cents off per gallon. There are also opportunities to earn bonus points by doing such things as purchasing gift cards, filling prescriptions, etc.
Here are some examples:
- Earn one fuel point for every $1 you spend
- Earn two fuel points for every $1 spent on gift cards
- Earn 50 points for filling prescriptions
- Earn 10¢ off per gallon when you spend $100
- Earn 10¢ off per gallon when you spend $100
9. Know the Best Times to Fuel Up
- Fill up your tank when it is coolest outside (early in the morning or late at night) and avoid the heat of the day as much as possible
- Why? The fuel is denser at those times, so you’ll get more gas for the same amount of money
- It’s also best to avoid filling up an empty tank during a holiday or on the weekend when people are doing more driving
- Why? That’s when gas stations are likely to raise their prices
10. Be Mindful of How Often You Drive
Cutting back on driving is another way to save on fuel costs. With the rising cost of gas, many people are being mindful about how much they drive and are opting for the following alternatives to driving:
- Walking
- Biking
- Carpooling
- Combining errands into one trip
Money Saving Quest 