1. These are really good tips. When you buy a used car then you may also want to consider an extended warranty plan. I buy extended warranty for my used car from Warrantech . This warranty cost me less than an extended service contract from a manufacturer.

  2. I bought a new car 7 years ago with an extended warranty and have never been sorry for one moment. I used that warranty so I am glad to have had it. I paid my loan off early as well. I do like your idea of socking away a monthly car payment to save up. Thanks!

  3. These are fantastic tips! I think we’ll be needing a new-to-us vehicle in the next couple of years, so I’ll definitely keep it in mind!

  4. I agree 100% to all of this. It also helps to ask around with people you know and if they are selling something. If you know them they tend to take best offer.

  5. I totally agree about buying used. Let someone else take the depreciation of the first year. Also, I have bought two cars that used to be rental cars, that were in pristine condition and low miles– practically brand new.

  6. This is great advice, I only wish you wrote it last year when I was car shopping. Now I am stuck in a lease because the salesman made it seem so fabulous! 2 more years on it then we can re-read this post and get something we want!

  7. This is such good advice! We’re looking to buy a car this fall, and when I bought the car I have now, I was a freshman in college and my dad did all the “work” so I am a total newbie at this!

  8. I’ve never bought a brand new car. The closest I have come to a new car is my Honda CRV (they’re the best aren’t they?!) which was only 6 months old, but someone had bought it, driven it for a few months, but didn’t like sitting up so high so they traded it in for a car. Saved me thousands compared to a brand new one! I will say though, I have a car payment on it. I can’t wait to finish paying it off though and not have that bill each month!

  9. When haggling, we actually made a point NOT to tell the salesman how much we wanted to spend. Knowledge is power. If they know your budget, they’ll do their best to match it, but your haggling power diminishes when you try to negotiate the price below what you told them you could spend. If they know how much money you have, they’ll stop negotiating when they meet that price.

  10. Go at the end of the month! Most dealerships have a monthly quota, and most salespeople are paid on commission by month. The salesperson might not have much say in terms of giving you a deal, but the folks in charge do, and they want to hit their quota! They’re much more likely to make a good deal with you, either the last weekend or the last couple days of the month. When in doubt, ask to speak with the finance manager. That’s typically the person who can really deal.

  11. I’ve never actually had a car payment either and I love it. Only because I’ve only had 1 car in my entire life. My parents didn’t have money to buy me a car in highschool and I finally was able to buy 1 for $7000 in college and I’ve been driving it ever since. It was about 4 years old at the time, no warranty and I’ve had little problems with it. i think a lot of it also has to with the car you buy! Anywho, I love being payment free!

  12. We bought two new cars and never had any problems with them… I know so many people who buy used and have to keep putting money into them because something always goes wrong because they don’t have the warranty the new cars had. I know all your points make sense but really, I loved my new car and wouldn’t trade it for anything. After driving for years on it with no problems I think I saved money on repair

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    1. Oh TOTALLY! It’s so funny you mention that because I actually had the opposite happen to me… the 2nd brand new car I bought (my Volkswagon Rabbit) I put over $6,000 of repairs into it in the first three years I owned it. Everything kept breaking and nothing was covered under the warranty. My used cars I’ve barely had to fix up within the first few years… my current Honda CR-V… I’ve had no issues since I bought it over a year ago. I think it really all depends on the make, model, etc. of the car, too! Which really goes back into the research aspect. 🙂 Thanks for the comment, Anna!!

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