How to Save Money on Your Next Car Purchase?
Investing in something new, is always an exhilarating experience. You mull over all the possibilities of what could go right and what could go wrong? Just like getting a new house, buying a car comes with a lot of responsibilities. While discussing all the features is exciting, there are two important things you need to consider:
Mode of Payment
You should have saved some money while you were planning out your dream purchase. You can either buy a car in cash or can apply for a car loan. Car loans are easy to avail and are convenient, as you can customize the instalments as per your payment capacity.
Which Car You Should Buy – New or Used?
Depreciation is the main reason behind buying used cars, because cars depreciate fast. While everyone desires to buy a new car with all new accessories, features, engine, etc., a used car is a much better option. Auto loans are a great way to save the depreciation money because you would only be paying the interest on purchase price.
Apart from these, going as a well-informed buyer by doing all the research lets you save even more. Therefore, research about:
A trade-in is the mutually agreed amount you get against selling off your old car which you can use to buy a new car. Selling your old car would earn you a trade-in as many dealers accept trade-ins as a down payment. A trade-in can be really helpful for buying a new car.
If you want to go for a higher model, look for the one which has all the features and don’t compromise on any of it. However, if you are low on budget, opt for the base models. These are well within the budget and loaded with all the features you want. You can get a car at a lot cheaper price if you buy a base model. You can always upgrade an accessory or two, afterwards.
Whichever the dealer you choose, ensure that you know the market prices. Get yourself informed about various dealers by negotiating for the discounts, insurance cover and the number of free services.
Buying a car is a long-term investment. Ensure that you have searched enough about different car loans, variants, prices, mileage, from magazines and internet sources. Don’t get carried away and stick to your decided budget. Calculate all the repairing costs and maintenance charges. Lastly, don’t forget to take a test drive before you sign the deal!
You can also visit YES BANK's website to know more about their Savings Account, NRI Savings Account and Fixed Deposit Accounts.