11 Tips to Save Money On Car Purchases, Financing, and Leasing

by Kate Ross
You don’t need to be an expert to obtain advantageous terms on your purchase, loan or leasing contract. Following you will find some tips on how to save money on car purchases, car loans, or car leasing contracts:
When Purchasing a Car:
1) Choose a car with a low gasoline consumption so you can save thousands of dollars each year on fuel. You can find out comparisons on gasoline consumption on online sites that focus on energy saving and protection of the environment.
2) Select a car with low maintenance and repair costs. These costs are usually related to the cost of the vehicle but often have to do with the origin of the car. If car spare parts are produced in the country they are easier to get and generally cheaper while imported parts can be more expensive though this is not necessarily a rule without exemptions.
3) When buying a car, shop around to obtain better prices by contacting different dealerships or by purchasing directly from an owner.
4) The car’s purchase price isn’t the only reason for shopping around. When it comes to financing and insurance it is also advisable to compare different loan and insurance quotes before deciding on any kind of deal.
5) If the car is used, have it checked by a professional to see if the car is in good conditions and if those conditions justify the price the seller is asking for the car. Also, make sure to find out what other people are asking for the same car and model so you don’t overpay.
When Financing The Car Purchase:
6) Compare different loan quotes just like you contact different dealerships or look for varied car prices. The loan adds up to the overall costs of the purchase and thus, you need to get the cheapest deal possible.
7) The higher the amount you can put down on your car, the less money you will need to borrow, the fewer interests you will need to pay and the lower the rate you will have to accept. Thus, a good down payment can save you hundreds of dollars each month.
8) Improving your credit before taking a loan will boost your chances of getting better terms on it. Sometimes taking two or three months to put the rest of your debts in order can get you a much better deal on your car loan.
9) Applying for a car loan with the aid of a co-signer with a good credit score will guarantee that you get a better rate even if you have bad credit or no credit at all. With a co-signer your credit score will not weight that much since the lender has another credit score to consider because the co-signer is obliged to repaying the loan just like you if you fail to meet your monthly payments.
When Leasing Your Car:
10) Consider different models in order to get a better price. A leasing contract doesn’t provide you with the ownership of the car and thus, all the costs associated with the car, though passed to you trough the leasing payments, remain on head of the leasing company who owns the vehicle. Some models and brands are less expensive than others in terms of repair, insurance, depreciation which will imply lower payments for you.
11) Pay close attention to other costs like excess mileage, car exchange at the end of the leasing (renewing contract with different car), car purchase option (if you want to buy the car at the end of the leasing), etc.