Looking For a Cheap New Car? 3 Tips You Need to Know

Buying a cheap new car seems to have become every potential car buyer’s priority. The increasing demand for affordable cars is a testimony of how consumers are no longer in the mood to spend thousands of dollars on getting the vehicle of their choice. Instead they are willing to settle for something less attractive if that is available at a reasonable price.

This trend is attributed to a number of factors. The present economic scenario is undoubtedly the biggest factor of them all. With mass layoffs and significant salary pay cuts on the rise, people have put brakes to all expenses. Therefore, although they may require cars for doing several works, they are more cautious than ever to spend their hard earned money.

Auto companies are also responding to this new development in the car market by offering cars of all kinds at affordable prices. As expected, this is turning out to be a win-win situation for prospective car owners who may not have much money to go for expensive cars. From SUVs to luxury cars, choices are aplenty but often this creates confusion in the mind of the car purchasers looking for a cheap new car.

There are however, certain easy measures that can help any first time or experienced car buyer to get a car of his/her choice at the right price. 3 simple tips that can help any potential car buyer to find a cheap new car are as follows:

  • Finding the right source:
  • There are a number of car agents and distributors who specialize in offering cars at affordable prices. Some of these car agents may even give options in new cars. By availing their services, interested car buyers can gather useful information about cheap cars and strike great deals. The trick here is therefore to find these sources and get in touch with them. Many of these agents advertise their services at newspapers and at online platforms. It is therefore important to keep the eyes and ears open and make the most of the opportunity available.

  • Negotiating prices:
  • Nothing works better than negotiating prices with your car dealer. It is an art in itself and there are several ways by which you can negotiate prices. Look for special offers during off seasons and work out on your budget.

  • Car exchange policy:

One of the most well known ways by which a cheap new car can be acquired is by going for the car exchange plan. You exchange your old car for a new one and bargain in the process.

Why Don’t You Rent a Luxury Car If You Can’t Afford To Buy It?

Put yourself in the following situation: Your girlfriend has always been attracted to the brand new Cadillac Escalade in the driveway of your next door neighbor. You realize you cannot afford to buy it and you start to feel a little depressed. You love your woman and want to give her what you know she loves, but you can’t; frustrating isn’t it? Then, all of a sudden it hits you; why not rent one? Yes, renting a luxury car doesn’t cost your arms and legs.

So, you decide you’re gonna give your sweetheart a nice surprise next weekend; you go to your rental store and order a rental for a Cadillac Escalade for the next weekend. Now you can look forward to a romantic weekend in a luxury car, and imagine how surprised your girlfriend will be when she sees it!

Here are a some tips to remember when you rent a luxury car:

Do Some Research

Find out what vehicle your loved one dreams of driving and if there are any particular options or colors they have in mind. Figure out all about the vehicle from the manufacturers website or by visiting your local dealership. That way you’ll know exactly what your girlfriend meant when she said she would love to drive a 7-series BMW.

Make sure you have considered all the options so that you don’t waste time fiddling with knobs and gadgets as soon as you rent the automobile. Ask around at different rental agencies for the color or options of your choice. Your mother may not be picky about the color, but she may adore the color of the seats.

Find the best deals

Search the internet for deals on renting a luxury car. Also find out if your credit card offers any partner deals or if you can utilize your airline miles or credit card points for this purpose. See if you can find coupon codes online as well as in print. Many auto rental agencies such as Enterprise and others, offer a free upgrade option on the back of their receipts which means you can rent a luxury car by just paying for a premium or mid size one.

Unlimited Mileage Would Be A Good Idea

Go for flexibility of where you want to go and also go for the unlimited mileage option which is standard at vehicle rental chains like Budget, Hertz and Alamo. Some really exotic automobiles, like for example a Rolls Royce Phantom or a Ferrari, however, may be rented based on daily or even hourly rates as well as limited mileage. Therefore, be very aware of the details lest you are charged a penalty for driving more than the allotted miles.

Add Your Sweethart’s name and let her drive it

If you want to surprise your girlfriend, don’t forget to add her name on the rental agency’s paperwork so that she can drive her dream car for herself. You will need her driver’s license number plus a few more details.

How To Make It Really Surprising

Last but not least you must not destroy the surprising aspect; therefore rent a luxury car from a vehicle rental store that brings the car home to you, so that it is parked in your driveway when your girlfriend is arriving your home at Friday evening.

Planning to Buy a Luxury Car? Think Twice Before You Buy It

Most of the luxuries, and many of the so-called comforts of life, are not only indispensable, but positive hindrances to the elevation of mankind ~ Henry David Thoreau

When purchasing a new car, one has two options – a moderately priced functional car and a fancy luxury car. Many people today are willing to spend more and buy a luxury car. Do you think, it is a good decision? It may not be. Here are some reasons why.

A majority of self-made millionaires will get rich because they don’t spend much on luxury cars, expensive houses, finest clothes, etc. They become rich by spending moderately, not overspending and by accumulating wealth.

Self-made millionaires never spend on luxury and fancy cars. According to “The Millionaire Next Door” a bestselling book, ninety percent of typical self-made millionaires have never spent more than $17,900 (around Rs 8 lakh) on a car. You may be surprised, but it is the truth. Half of the 10 most popular vehicles in America’s wealthiest neighborhoods are non-luxury cars.

Car is a depreciating asset

Buying a car is not an investment. In fact, it is a depreciating asset – car loses its value over a period of time. The value of the car drops below the value of the cash that it was purchased for. The drop in value is called ‘depreciation’. A car loses its value in the first year itself and then it depreciates every year. The fact is, a car loses its value once it is out of the showroom.

Better to go for a functional car

For instance, you have two options to decide on which car to purchase – one is a luxury car worth $50,000 (around Rs 25 lakh) and a normal functional car worth $11,000 (around Rs 6 lakh). After two years, the resale value of the luxury car becomes $35,000 (around Rs 17 lakh), whereas the resale value of the functional car becomes $7,700 (around 4 lakh). (considering 30% of depreciation after 2 years).

You can clearly see that you will lose around $15,000 within two years, if you purchase a luxury car. You will lose only $3,300, if you purchase a regular car. Hence, if you purchase luxury car, you would lose more money when you consider selling it.

Understand the difference between rich and wealthy

There is a great difference between rich and wealthy. Rich people show-off their status by spending lavishly on luxury cars, foreign vacations, dining at 5-star hotels and living in expensive houses. Whereas, a wealthy man will live below his means and accumulate his wealth to maintain his wealthy status.

A wealthy man has a control on his emotions and won’t get carried away by fancy things, for him purchasing a luxury car is waste of money. Instead he is very much satisfied in owning a functional car.

Wealthy feel happy to drive

Moderately priced mid-sized cars
Low-profile cars – reliable, affordable and convenient
Not very expensive, neither a sub-standard car
Fuel-efficient cars

If you want to be wealthy, you need to be frugal and live below your means. Even if you can afford purchasing a luxury car, think twice before you make this decision.