It doesn’t matter whether you need a car out of necessity or want one because it supplements your lifestyle – it’s going to be a costly investment that’ll depreciate rapidly. But that doesn’t mean you there aren’t ways you can save money.
Here are several strategies that can save you thousands on your car purchase:
Be Patient with Purchasing the COE
There are three ways to get your COE – you can buy a used car with COE attached, have the dealership bid on your behalf, or bid for it yourself. When it comes to the COE bidding game, time plays a huge role in determining how much you’ll pay.
If you’re impatient, you’re going to pay a lot more if you have a dealer bid aggressively to win your COE or purchase an open COE. But if you’re patient and don’t mind waiting a few months, ask a dealer to bid ONLY with the amount you choose for each tender.
It may take time, but being patient can save you thousands on the cost of owning a car.
Get Maintenance Records for Used Cars
Buying a used car is an immediate way to save money, but you’ll need to choose wisely. Otherwise, that “cheap” used car could end up costing you thousands in maintenance costs. That’s why it’s important check a car’s maintenance history – because a well-maintained car costs less to maintain.
So before you buy a used car, beware of the following:
- Older vehicles may need to have parts specially ordered, adding to maintenance costs.
- Older vehicles tend to be less fuel efficient, adding to the upkeep expenses.
- Older vehicles have more mileage, adding to the frequency of maintenance/parts replacement.
Say No to Add-On Fees
When you buy a car, the dealer won’t just charge you for the value of the car and the cost of the COE, but add-ons will also be added to the bill too. Unless you go through the bill item by item with the dealer and have these add-ons removed, you’ll end up paying for items you don’t need.
Negotiate Your Car Insurance
Depending on whether you purchased your car without a loan or paid off the loan completely, you can purchase Third Party Only (TPO) insurance, which is the cheapest form of car insurance. Another money saving alternative is to negotiate with the insurer to lower your monthly premiums by accepting a higher excess. Either option can potentially save you hundreds of dollars a year.