Here are some additional ways to save when it comes to getting a new car:
1. As you look at makes and manufacturers,consider a new electris hybrid car or one that uses an alternative fuel source.Not only are these cars much cheaper to operate in the long run,they are much better for the environment.And some models allow you to take a tax credit.
2. Start at the low end of your budget and work your way to the car of your choice.It's too hard to go from looking at $35,000 vehicles to making do with a $22,000 one.
3. Try to get preapproved for a car loan before you go shopping.It's better to know up front how much you can borrow and what the terms are before you lose your senses over that new car smell.Talk to your bank to see what they can do for you.Also check with several car dealers to see what kinds of loan terms they offer.
4. Learn about the current range of interest rates on new and use car loans.Check out the national averages at http://www.bankrate.com/
5. When you're working out the total cost and payment terms with the dealer,remember that getting a low interest rate and a shorter repayment period is more important than having a low monthly payment.
6. Ask your banker or car dealer about taking out a simple interest loan instead of an installment loan (also called a front-end loan).With a simple interest loan,you pay interest only on the remaining principal.With an installment loan,you pay interest on the entire principal throughout the term of the loan.This means that even if,for example,you have paid $8,000 on a $15,000 installment loan,you will continue to pay interest on the entire $15,000!
7. You can take out s home equity loan to finance your car if you are a homeowner and have enough equity.The rate may be cheaper,and the interest you pay is usually tax deductible.
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