Tips for Saving Money if You’re Buying a Car This Year

Record-breaking low inventory. Supply chain disruption. Vehicle sales soaring above MSRP. These are the headlines currently defacing the automotive industry. As we wait for things to get back to pre-pandemic times, the challenges just keep on coming. It’s an outcome that’s directly impacted consumer buying, and continues to begrudge the relationship between new car buyers and dealers across the nation. Simply put, buyers want a deal. And dealers aren’t budging. Yet with the ongoing challenges, some nifty shoppers have figured out ways to reduce the financial burden. After chatting with a few of these consumers, we’ve decided to gather the most helpful tips for saving money in the 2022 auto market.

4 tips for saving money on a new car

These days it’s nearly impossible to snag a deal on a new vehicle. Yet, not all hope is lost (at least not completely). There are still a few ways to save that could have you driving out of the dealership right at MSRP. Whether you’re looking for a compact SUV, truck, or sedan, here’s the things you should know before signing an overpriced contract.

If you need to finance, look for the lowest APR rate

Because vehicles are depreciating assets, it’s more of a necessity rather than a good investment at any point in time. That said, you can help ease the financial impact by searching for the lowest interest rates available. Most advertised APR rates fluctuate between 2.5-4%. However, around holiday weekends and annual dealership sales, buyers are lucky to find offers with 0% APR or as low as 1.9%. Ideally, this is the best case scenario for car shopping in 2022. Many buyers have also found greater success by getting a loan from their bank versus the dealership. All in all, it may take a little patience and more time comparing financing options, but it’s definitely worth the savings.

Tip: Use a loan calculator to compute purchase price, interest, and total expenses to see if the car loan that the dealership is offering is really as good as it seems.

Don’t be afraid to travel the distance

If you want a deal nowadays, you’ll need to put in the work. And quite literally, that could mean traveling thousands of miles to get a good deal on a vehicle. A recent report by the Guardian showcased this trending scenario for new car shoppers. When local dealerships aren’t giving consumers what they want, a number have began widening their search of where they’ll buy. One determined shopper drove over 3,000 miles across the U.S. to avoid paying the premium cost for a new Toyota. Though it might sound like extreme measures, people are simply fed up with the dealer’s market.

Tip: Look outside your county or even state when shopping for a new vehicle. In many cases, buyers find cheap flights to more remote locations where a new car purchase is waiting right at MSRP.

Online resources are your friend

During the pandemic, we saw a spike in online car shopping. But now that mask mandates and social distancing orders have reduced, shoppers have been eager to get back to in-person negotiations. Although its nice to have this option available, you shouldn’t hold back from browsing online as well. With great retailers like CarMax, Carvana, and AutoTrader offering online shopping from your couch, you don’t have to be sit face to face with a salesperson for hours anymore. Take advantage of this. Browse several options at your own pace, without the pressure of signing a deal.

Tip: Shopping online allows buyers to price compare more easily. You might end up saving money by seeing what more than one dealership has to offer. Plus, online car shopping is an easy way to save time.

Never settle on car insurance rates

Lately we’ve been urging more drivers to see the advantages of shopping for car insurance. And we’re not talking just once a year here! Car insurance premiums are constantly changing, therefore you’re doing a disservice to your wallet if you don’t see what other options are available. After buying a new vehicle, consider setting aside time at least once every two months to see what other prices are out there. Due to the overall cost and price to repair, new cars are often higher to insure, which will have a direct influence on your car expenses.

Tip: Rely on trusted car insurance comparison sites like The Zebra or NerdWallet to search for lower insurance premiums.

Did you enjoy our tips for saving money on a car in 2022?

Within the last year, chaos has taken ahold of the automotive industry. Now that buyers are feeling the unbearable impact, it’s time to look for ways around this unfortunate market. We hope these 4 tips for saving money will help you walk into your next car buying decision with confidence. Although there is no one-size-fits-all solution to the challenges pegging the automotive industry, we look forward to things settling down by 2023. As reports show, inventory and supply chain shortages should start to resolve within the next year. Until then, these tips for saving money are a great way to navigate the current market.