Buying a new car is a big decision. There are many factors that come into play when making a new car purchase. This is how my family bought a new car and survived to tell about it.
My family needed a new car. Our other car was older and it was time for an upgrade. In order to save money on a new car, we used a trade in. We also took advantage of year end savings events.
Trade in value decreases principal loan amount.
We were actual very happy to upgrade to a new car. Our old car had been tried and true for years. It was a 1995 model. As we went to the dealership we wanted to leave with a new car. The old car ended up becoming our main collateral. It was not much, but it was able to help us with a trade in deduction.
When we went to the dealership, we were not able to get a completely new car. However, we were able to use our trade in toward a slightly used car. We received a $500 deduction from the principal loan amount.
What incentives did I use to my advantage?
During the time I purchased my most recent vehicle, there were dealer rebates. These rebates vary from time to time and from dealer to dealer. We went during a customer cash and military discount event. These discounts count toward the original purchase price. Customer cash is for individuals without a military affiliation. The customer cash or military rebate is what the dealer puts toward the purchase price. There is still financing that is added, once a purchase price is agreed upon. In my case we left the lot with a slightly used car.
In order to qualify for a military rebate, we had to purchase a completely new car. But the car salesman was very helpful. The car salesman was able to help us, with our trade in value. He was able to deduct an additional $500 from the principle loan amount. Technically, it was half of the military rebate. But, in the end it acted as a trade in incentive.
In all my family ended up saving $1000. We went out that day to purchase a car and were able to come home with one. We were also able to save a little by trading in our old car and taking advantage of rebates.