10 Tips to Save you Money When Buying a Car

This is a guest post from a site that specializes in car finance. It's a U.K. site, but much of the advice has applicability in the U.S. as well.

Timing is crucial

When buying a new car, it is crucial that you buy at particular times in the year - you could end up saving a fortune. Dealers will usually have great deals on just before the introduction of a new registration plate. They will want to shift their slightly older stock and subsequently they will lower their prices. Buying towards the end of the year can also be a good idea, too.

Search

This one may seem obvious, but you'd be surprised how many people don't do it. Searching around for the best deal can be a great way of saving money on your new or used car. Check round your local dealers to see which one offers the best deal, or compare local dealers online to see their current stock. For example here in the UK, Netcars is an online used car search engine providing details on UK car could save you a pretty penny.

Check online

The internet has revolutionised how we buy, and you shouldn't dismiss the web as a viable source of finding your next car. The amount of cars offered online is vast and you can often compare deals all in the comfort of your own home. Just make sure you view the car before you buy!

Haggle

Dealers will do their best to sell the car at as high a price as possible, and it's your job to minimise the price. Haggling is a bit of a tabooed subject in Britain, but it's a technique that could reduce the price on your new car by a considerable margin. Be brave and hold your ground, after all, the dealer wants you to buy the car, and even if you get some free mats thrown in, it's better than nothing.

Skip the sat-nav

We live in an age of luxury gadgets, technology and expense, but do we really need them? If you're looking for a cheap deal on your new car, then we suggest leaving the in-built satellite navigation system option unticked. Adding a sat-nav can literally add thousands to your bill, so before you tick that box, think about the extra dough.

Warranty

Most dealers will offer a standard warranty to accompany your car, but in some cases an extended warranty is offered at an extra price. It's best to consider how much the extra warranty will cost and if you really need it. Are you intending to keep the car for longer than three years? If not, then it might be best to leave the extended warranty alone.

Options

The standard price of a new car is often deceptive, as the dealer will try and sell you optional extras. They will seem tempting and some may well be impressive, but every time you tick the box you are reducing your bank balance. If saving money on your new car is of paramount importance, then we would suggest leaving the optional extra sheet alone.

Petrol or diesel

Make sure you know the price difference between the petrol and diesel versions of the car you are looking at. There could be a considerable difference and if saving money is your criteria, then doing your research could prove to be a financial saviour.

Insurance

Buying your car is just the start of your journey, you'll have to insure it and that can be a real financial pain. Some cars are deceptively high for insurance, so it's best to ask the dealer what insurance group the car sits in and then you can make an informed decision and save a few pennies at the same time.

Test drive

If the car you're buying is used, then a test drive is the most important action you could do. A test drive will ensure the car drives how it should, and you can determine whether there are any mechanical issues, too.

This is a guest blog post on behalf of car finance