Don't Make These Mistakes
When Buying A Car
When it comes to car buying, the internet has played a vital role in leveling the playing field for consumers during the last few years. Car shoppers can now compare the best deals among literally thousands of vehicles from the comfort of their own homes.
The result has been increased competition among dealers, better informed car buyers and lower prices for both new and used cars.
And while this is certainly a great benefit to consumers, it remains perplexing that these same buyers aren't using the internet to save on other car expenses as well.
Buyers Often Overpay On "Other" Car Related Items
Here's an example: A friend of mine from the west coast called me recently to tell me about a great deal he had just gotten on a used Jag. I looked up the price, and sure enough, it was a very good deal ... close to trade-in value, in fact ... so, I congratulated him.
But then, it comes out that he got a loan for the vehicle through the dealer. And based on the interest rate and his credit rating, it will cost him $2,000 more than if he had simply gotten that loan himself online.
In addition, he bought an extended warranty from the dealer for a bit over $2,300 (cost to the dealer? about $700). Again, he could have purchased the same warranty online for less than half that price.
Bottom line? Yes, he used the internet to get a great price on the car. But he then promptly flushed $3,000+ right down the drain! That's $3,000 that should still be in his wallet.
So, let's review the more costly car related expenses where shoppers can save a lot of money simply by using the internet.
Save $1,000 - $3,000 On Your Car Loan Payments
Unfortunately, dealers often make a bundle on you when you get a loan at a dealership. Sure, getting the loan there is convenient, quick and easy. But in most cases, you'll probably be paying through the nose for that few minutes of laziness.
I've seen cases where the dealer made nothing on the car but over $3,000 on the loan. They basically use the car as a means of getting the loan ... and then buyers fall for the low car price without realizing they're getting royally hosed on the loan.
Let me give you a more typical example. Let's say a dealer is paying 5.9% for a loan, but gives it to you for 6.8% (it's a little more complicated but it basically comes down to this). And let's say this costs you an additional $28 a month over a 5-year loan. Well, that's an additional $1,680 out of your pocket that goes right into the dealer's pocket.
Obviously, you'd save the $1,680 by getting the loan directly from the source at 5.9%. Why let the dealer take so much of your money to act as a "middleman" for a loan you can get yourself?
Instead, its much, much better to arrange for the loan BEFORE you buy. And to get the best loan deal, all you have to do is get the loan companies to compete for your business, whether for new or used car loans (or good or bad credit).
This can be done right on the internet in a matter of minutes. So, we strongly recommend going to MyAutoLoan.com for free, no-obligation rate quotes from the lowest rate providers ... and all within minutes. Then all you need to do is compare and choose.
It's quick. It's simple. And it saves a lot of money.
Always Get Multiple Insurance Quotes For Big Savings
Okay, the "online competitive quotes" theme to total car savings is again critically important if you don't want to overpay for your car insurance ... whether you already have a company, or even if you already have coverage.
It's not uncommon for policy costs to differ $200 to $500 a year for the exact same coverage. Let's say you're paying $250 more a year than you have to. Well, if you own that vehicle for four years, without comparing prices, you've spent an extra $1,000.
The internet has made getting competing insurance quotes easy and hassle free. Here's a website that will give you side-by-side online car insurance quotes. It's simple, fast and a real eye-opener.
Extended Warranties Are Also Much Cheaper Online
You will significantly overpay if you buy your warranty from your dealer. There's just too many markups and too many commissions built into the price.
It's much wiser to get the same coverage for hundreds less year after year right online, purchased directly and bypassing a number of hefty markups. Not only that but most consumers don't realize that such coverage will be honored not just by your dealership, but by any licensed mechanic as well ... another big, big plus.
The whole car warranty market is simply another area where I see so many car owners wasting hard-earned money. There's serious cash to be saved here so please check on prices for yourself ... it's so easy.
In this area I recommend using CARCHEX because they've already done the homework for you. They've already shopped and researched the market for the best and highest rated Extended Vehicle Protection (extended car warranty) providers and created a marketplace where those providers compete for your business.
It only takes about a minute and you'll then get the best extended warranty plans from competing providers at the lowest possible prices. So, you can head over to CARCHEX to get your no-obligation quotes.
Please don't forget that car savings go far beyond the price you've actually paid for the vehicle. There's additional ways to use the internet to save many more dollars from your transportation budget.
Happy Savings! - Josh