With inflation rates the highest they’ve been in 13 years, you’re likely seeing higher prices everywhere. That’s most evident in used car prices, which have skyrocketed over 26 percent since August 2020 – and they don’t show signs of going down any time soon.
The problem? If you’ve got a car on its last legs and need a new vehicle NOW, you’re probably wondering how you can make it all work. Don’t let scarcity push you into a financially risky situation. Battle back against high car prices with these six tips!
1. Avoid car loans.
We won’t sugarcoat it – paying for a new-to-you car with only cash can put a significant dent in your wallet. But even though car loans may seem like an easy way out, you could end up paying thousands of extra dollars in interest. If you’re able to still wait a year or two, put the money you would be spending on a car payment away in savings. Trust us – it’ll be much more helpful in the long run!
2. Talk with a trusted mechanic.
When shopping for a vehicle, it can always be great to get an expert opinion. Your local mechanic can be a great resource to learn what vehicles are the most dependable. If you find a vehicle that you’re interested in purchasing, have a trusted mechanic do an inspection. It’s an inexpensive way to save you headaches and hassles down the road!
3. Shop near the end of the month.
Back before supply chain issues and shortages, shopping at the end of the month was a surefire way to get a good deal on a car. Dealers who are looking to earn incentives or move inventory off their lot are much more willing to negotiate with eager sellers. However, this benefit might be dampened a bit until inventory can catch back up with demand, but it still can’t hurt to do a little shopping around this time of the month.
4. Check out the private seller market.
The private seller market requires a little more effort on your part, but you may be able to find some great deals and motivated sellers! Chances are, someone who’s selling their car on their own might be more willing to negotiate with you, especially if they know you can pay in cash. That means more buying power in your hands! Just be sure to have the car looked at by a trusted mechanic – and if you’ve got an uneasy feeling in your gut, don’t be afraid to walk away.
5. Know your stuff before you negotiate.
The most powerful tool you can bring with you car shopping is knowledge. By knowing the Kelly Blue Book price range for your car, you can use that information to establish what flaws in the car might knock a few hundred dollars off the asking price. Start low with your price, be willing to meet in the middle, and don’t let them know how much cash you actually have on hand.
6. Remember – it’s just a car.
When it all comes down to it, remember that you don’t need to find your dream car – you just need four dependable wheels to get you from point A to point B. Maybe you won’t absolutely love your new vehicle, and need to take a few years to save for the car you really want. But in the end, settling in the short term is going to be a much better trade than a shiny new car that plunges you even further into debt!
Strong Tower Consulting has helped over 1,000 clients pay off over $7 million in debt. With Strong Tower, you’ll:
- Create a plan
- Learn to manage money
- Build wealth
Don’t wait another day to take your first step. Schedule your FREE session today, and learn how you can get out of debt and pursue financial freedom!