7 Secrets To Save Money When Buying a Car

Buying a car is the second biggest purchase you can make and if you are not careful it could cost you thousands of dollars more than it needs to.

By: | News Channel 7
Published: May 15, 2008

Buying a car is the second biggest purchase you can make and if you are not careful it could cost you thousands of dollars more than it needs to.
7. To get the lowest interest rate on a car loan check your credit score first. Make sure you fix mistakes you find and pay off your bills. Mary Jane Davidson with First National Bank of Spartanburg has advice for car shoppers, “to make sure their credit score is going to be high enough to afford them to get the best rate possible”.
6. Get pre-approved by your bank or credit union for a car loan. That forces the dealership to beat that interest rate if they want your business.
5. Set up your payments through automatic bank account drafts. Davidson says, “most financial institutions will reduce that rate for you typically a quarter percent. A quarter percent is a great savings.”
4. Use a calculator to figure out which is a better deal, a big rebate or a low interest rate.
3. Negotiate a newer car first, before you negotiate the value of your trade-in. Charles Ellison with the South Carolina Department of Consumer Affairs says, “If you bring in a car that’s worth two thousand dollars, you tack on extra to your new car payment and it evens out and they get the better end of the deal.”
2. Skip the extras. Products like scotch guard or paint protector can be bought for much cheaper away from the dealership.
1. Keep payments to 48 months so you won’t end up upside down in your loan, meaning owing more money than the car is worth.
Here are some links on more tips on how to save money over the life of your car.
20 ways you waste money on your car
Find the lowest gas prices in the area
How to save money on gas