10 Smart Ways to Save Money on Your Next Car

A car is a big ticket item, with the average price of a new car at the end of 2022 coming in at $48,681, according to Kelley Blue Book. 

If you’re in the market for a new car, there are some smart money moves that can help you make the most of your purchase — like figuring out how to make extra money to put towards your down payment.

Let’s take a look at a few more money-saving tips to think about before you drive off the lot.

A car depreciates in value as soon as you leave the lot, with some figures pointing to a 20% drop in value as soon as you buy it. 

A used car might not be the most appealing purchase, especially if you like the new car feel. But it can save you a lot, even if it’s only a few months old.

Remember that a used car doesn’t necessarily mean “old.” Look for a vehicle with low mileage and many of the features you want. If you really want to get as close as you can to that new car feel, consider last year’s model.

The cost of your next car purchase isn’t just the sticker price. It’s also the finance charges in the form of interest that you’ll pay over the lifetime of your loan. 

In 2022, the average APR for a new car loan ranged from 3.84% to 12.93%, depending on credit score. No matter your rate, you’re still paying more than the original loan amount to finance your vehicle.

If you want to try and save some money, compare interest rates from a few lenders. The extra effort could save you thousands.

Buy the car you need and not just one that’s packed with add-ons. For instance, if you live in a winter climate, seat warmers might make more sense compared to someone that lives in a warmer area.

Make a list of essentials to help you avoid overspending. You should also consider more cost-effective alternatives to specific options. For instance, you can skip built-in navigation if the car offers smartphone compatibility.