Cheap Ways to Purchase a New Car

Cheap Ways to Purchase a New Car

Cars and homes are both expensive assets which are bought after reasonably long intervals. However, it is a good idea to accumulate cash and pay for the car through it rather than taking loans, which run through credit reports. Cash is just one of the cheap ways to purchase a car and has been explained further, as have other methods. Here are the different ways to buy cars cheaply, as recommended by reputed financial planners:

1)      Paying Through Cash- Payment of a vehicle through cash is the best way to avoid financial debt, considering that a vehicle is a depreciating asset. It is possible to set money aside every month to purchase a new car. Savings should be made in a manner such that money is still left after spending on the car. Alternatively, 0% finance is also a good idea since car salesmen offer incentives those who finance their vehicles.

2)      Financing Through an Outside Lender- A buyer with a healthy credit score can get it checked with an outside lender to find out the rate of interest he or she can get. Often, it would be a rate as attractive as 1.5% or 1.7%. If done, the purchase price will have very little rebates. This will enable the buyer to pay purchase price and a nominal increase in it through reasonable payments.

3)      0% Finance- 0% interest is a good idea every time, and there are multiple reasons how banks can offer car loans at this rate. Dealers try to get rid of excess vehicles in their stock and being down values of trade-ins to earn more. Therefore, it would be a good idea to trade-in elsewhere before making the new purchase.

4)      Check the Numbers-Rebate is available only in one option with 0%. High interest rates are accompanied by lower purchase prices. After payment of the loan for the vehicle, it is also possible to refinance it for a lower rate, while having a good credit score at the same time.

A Single Method is Not the Best Every Time

Although the most common methods have been described above, only one method may not be enough to find out how a new vehicle needs to be paid for. It is difficult to come up with a correct number for interest rates without proper calculations. This is a major reason why buyers are recommended to get in touch with an expert in the field. Although an Investment Advisor can provide guidance, the future vehicle owner is the one who must take the ultimate decision.

New Cars Are Worth Purchasing

There are many times in which a person makes up his or her mind about purchasing a new car. People who have purchased used cars for a large part of their lives will realize that they pay much lesser in maintenance for a new vehicle. Other than maintenance, new versions of vehicles come with brand new features and redesigns as well, which can’t be accommodated in the previous versions.