When it’s time to upgrade your new set of wheels, you may want something you feel proud to show off and confident driving around each day. You may be in the market for a luxury car but still have a budget to work with while shopping around. Fortunately, there are a few tips to follow if you want to save money on a new luxury car and avoid paying full-price.
1. Look for Rebates and Incentives
One of the best ways to shave off a few thousand dollars on your new luxury car is to find something that comes with rebates and incentives. Car dealerships and automakers often offer discounts when they need to increase their sales. Some luxury models may also be discontinued, and dealers are looking to get them off their lots, which can work to your advantage.
2. Arrange Financing in Advance
Instead of financing your new car through a dealership, consider securing financing in advance before you start to shop around to get a better rate and save more money on the term of the loan. Contact your local bank or financial institute to apply for an auto loan to ensure you have the time to negotiate a better rate with the establishment. If the dealership is offering the financing, you can still check out their rates to determine if it’s a better deal. You can also keep the terms of the auto loan to four years or less to avoid spending as much on interest until you pay off the luxury vehicle.
3. Pay Cash
Cash is always king when it comes to buying a luxury car and has a lot of power over the dealership. You can negotiate a better deal if the seller knows you’re planning on paying cash. Paying cash also means you won’t be spending more on interest and can own the car outright.
4. Avoid Extended Warranties
Extended warranties can be an unnecessary cost when you’re purchasing a new car that is in excellent condition. The warranties can add thousands of dollars to the cost of your vehicle. Most luxury cars are reliable and won’t suffer from any significant issues in the first few years of owning the vehicle. Fortunately, new cars come with warranties to ensure any unexpected repairs are covered in the first year.
Shopping at the end of the month will also allow you to get a better deal when dealers have to meet quotas. This is when they’re more desperate to sell a car and will be more flexible when you negotiate the selling price.
5. Hire a Broker
Many people aren’t aware that they can hire a broker to help them find a better deal on a new car. Keep in mind that time is money, and you can spend too much time looking for the best deal instead of hiring a professional to do the work for you. Brokers charge a flat fee of an average of $300 but can save buyers thousands of dollars and know the right places to look to find the best deal. Avoiding hiring brokers who offer free services, which means they’ll charge a kickback fee from the dealer.
Knowing ways to save money as you shop for your next luxury car can allow you to afford the new purchase and have more peace of mind with what you select. You can even upgrade to a higher model with the savings you obtain, which can allow you to feel more satisfied with your new vehicle.