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| New cars are not really the best deals you can buy. Here is why ... |
We bought a car last year and we made three mistakes. I am going to explain what the mistakes were and how I won't make them again when I am ready to buy another car. You will be surprised at just how much money you can save if you write down a plan in advance, take it with you into the dealership, and stick to your guns.
First, consider buying 1 level down from what you want. New cars have more room and luxuries than similar models from 6-8 years ago. We traded in a 7-year-old car that was paid off but didn't have much value left.
So instead of getting a full sedan like we did we should have bought a budget model. Not a two-door car but a smaller four-door car. It's not like I need a huge load-carrying SUV or pickup truck. And we bought a sedan to save on gas mileage, but we could have saved more. I am still kicking myself on that deal.
Second, think about buying a certified used vehicle. These are usually just 1 model year older than the new cars and they have many of the same features that make new cars so appealing. Better yet, because they already have miles on them they are a lot cheaper.
You don't have to buy the certified vehicles from the major dealerships. You can get good deals from secondary dealers who are a little further out from town. Of course, any dealership that moves a lot of vehicles may be able to offer you better pricing. Go online and compare prices in your area.
Third, don't take that extended warranty deal. I fall for this trick every time. The extended warranty is almost pure profit for the dealership. Worse yet, the finance manager always offers you a range of plans knowing that you will pick the middle plan as having the best cost-and-features mix.
If you buy a new car it comes with a full warranty for over 30,000 miles anyway. You have until then to buy a warranty and several major car companies will sell you the same warranties direct for about half the price that the dealerships charge.
A certified used vehicle already has the extended warranty built into its price. You don't have to worry about that.
I knew all this when I went to buy my car, but we were rushing through errands that day and I was drawn in to the dealership by a good promotional offer. I should have spent more time looking at my options. I would be paying about $100 less per month now and getting better gas mileage.
I won't make those three mistakes again.
