No matter who you are or where you live, I'm going to guess that you might need a car at least once in your life. I'm not saying that you have to buy a new car of a used car, but car buying may come up in your life eventually.
Should you buy new or used?
Before you completely disregard buying a new car, there have been many news articles lately stating that new cars are actually sometimes cheaper than used cars, so don't always assume that buying used will get you the best deal
Sometimes you might also think that buying a “new-ish” car with low miles may also save you money, but wait! Always, compare first, because like I just said, sometimes new cars will be cheaper.
You are probably wondering why a new car would be cheaper than a used car or new-to-you car. Well, many car brands will offer large incentives for new cars, because it's mostly about beating their quota.
Also, with the cash-for-junk deal from a few years ago, that drove up prices for used cars.
So, yes, occasionally you can find the same exact new car going for thousands cheaper than a used one.
Now, if you don't want a sort-of-new or brand new car, then you can save heaps of money usually by buying something a little older. We managed to buy something from the 1980's for $500, drove it for a full year without any problems, and then sold it for $500. And, we sold it super quick, within a couple of days I believe and minimal work.
There are plenty of reliable older cars out there. You just have to know what you are looking for and notice something when it's a good deal.
Shop around for car financing.
Yes, yes, I know. This is a personal finance blog. However, some people might need to finance their car, and lately there have been some really good rates for car financing which make it hard to want to buy a car in cash.
Wait – You might be saying “But if you pay in cash you may get an additional discount!”
This is not always the case. If you are buying a car, sometimes (and where I live it is most of the time), they do not care how you are paying and it doesn't affect your car pricing at all.
If you do need financing, shop around. Sometimes you can get 0% directly through the dealership. However, if you don't qualify for that, you may be able to shop around and get a low interest rate such as 1% or 2% from a local credit union. You can also get guaranteed car finance from Money Barn.
What car buying tips do you have?
Join the free Master Your Money course!
Join the free email course and finally learn how to manage your money better, pay off debt, save more money, and reach financial freedom.