Do You Make These $$$$ Mistakes When Buying A Car?
Don't Miss These "Other" Saving Opportunities:
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 Still Overpay Needlessly 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 getting competitive multiple loan quotes
before signing the dotted line.
Car Insurance Is Another Area The Internet Has Opened Up For Consumers:
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
from the industry's top insurers. It's simple, fast and a real eye-opener.
Gasoline Is Another Big Expense:
Well, I wish there was such a thing as a site I could send you to with huge, 50% discounts on gas. No such place, unfortunately. But there are ways you can save hundreds, if not thousands (depending on how much you drive) of dollars on gasoline.
First of all, you can now check gas prices in your particular zip code on the internet at sites like Gas Buddy and Gas Price Watch before heading out to fill up. It's not that unusual to see price differences of 10 to 20 cents per gallon. This could save $3 or $4 per fillup, per vehicle.
Also, get a credit card that rebates you with 5% cashback on your gas purchases. With $3.75 per gallon gas, for example, this would save an additional 18 cents per gallon and really adds up week after week.
The best one I'm familiar with is the Discover Open Road Card
. There's no annual fee and there are rebates for other products as well.
So, 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
