Five Ways to Save on your First Car
Buying your first car can be a daunting process! There are a few things you need to do in order to make the experience as smooth and inexpensive as possible.
Buy used
It’s no secret that new cars depreciate as soon as you drive them off the lot: according to Edmunds.com, new cars depreciate and average of 11 per cent the moment those wheels hit the city streets.
That means if you purchase a $20,000 vehicle, as soon as you get the keys and drive away, the car is worth $17,800.
Of course, this is just an average, and some cars depreciate faster than others do; however, if you purchase a used vehicle, you’re avoiding this steep initial depreciation.
Some consumers might worry that purchasing a used car is riskier than buying a new one—they’re unsure if the vehicle has had any accidents, or they’re concerned it could be a lemon. However, there are online services that allow you to look at the history of a vehicle, so in most cases this isn’t an issue.
Bring an experienced buyer
Car salesmen are good at what they do—selling cars at the highest possible margins. Often times, we consumers are fixated on certain models or trim levels because we’ve been exposed to excellent marketing campaigns from car companies or dealerships.
The problem is, when we’re buying our first car, often times we’re caught up in the moment. Consumers can forget that they’re trying to save money, and can get upsold on trim levels and things like rustproofing. Having an experienced buyer there with you to provide a sober second thought could end up saving you thousands.
Do your research
Cars are big purchases, so it’s important to make the right one. Using trusted websites like Car and Driver to look at reviews of vehicles by class will help you narrow it down.
It’s also important to take a look at the safety ratings of the vehicle. The Insurance Institute for Highway Safety (IIHS) publishes comprehensive and up-to-date safety ratings on most vehicles. They provide videos of every crash test so you know how your car is going to handle even the worst of crashes.
Stay within reason
Are you looking for a car to get you from A to B? Then avoid an unnecessary vehicle like a pickup truck or a crossover/SUV. The fuel ratings should be a factor in your decision, as well as insurance costs. Performance vehicles should be avoided if you want to save, as they generally cost more to insure.
Compare insurance rates
One of the final steps to the car buying process is shopping for the best insurance rate. Just as car companies are great at marketing, so too are insurance companies. Don’t get caught up in the plethora of advertisements, and be sure to use a tool like our instant quote page to compare insurance rates from up to 15 different companies in just minutes. Different car insurance companies have different profit margins and financial structures, so rates can vary wildly. It pays to shop around!
