by John Benson

Created on: July 25, 2007   Last Updated: January 07, 2008

As we consider the costs of purchasing a car it is normally the price of the car (the sticker price) that we view as out target in our attempts to save money. However, this may be a distraction from the real savings that can be made when we purchase our new cars. Below are a number of suggestions that can help us to save money when we buy a new car, and how we can save money eve while running our new purchase:

Purchasing a car is usually our second largest purchase we are likely to make after our home. Yet we put almost no effort into buying a car in comparison to our homes. If you took as much time, and advice, about your car purchase as you did about your home, then you will save money and get the best deal possible.

Buy second hand. New cars depreciate in value very quickly (fastest during their first two years). Why not allow someone else to take the financial loss of the first years and obtain the car after it has finished hemorrhaging money. However, if you are buying a new car find out which cars keep their value the best and which are popular and will be easy to sell later on.

If you are purchasing a new car then remember: For most car dealerships it is the finance plan that earns them the most profit. If the new car you are about to buy will be bought using all or part finance then make sure you are getting the best deal possible. The percentage rate that you will pay can often be bartered very low as the dealership makes almost pure profit on the financing. It may, however, be a better option to arrange your own financing through a bank loan.

Research! Do as much research as possible about the car you want to buy. This way you reduce your chances of being sold a lemon, and the sales person will see you as someone who knows a thing or two about cars Always useful when dealing with car sale people.

Inspect the car, or take someone with you who knows about cars (preferable a mechanic!). If you don't know the condition of the car you are buying then you could be in trouble by the time you get it home. If you are not sure about your own knowledge then have someone with you who can give the car a thorough look over and check for faults.

When you are considering what car to buy it is worth thinking about longer term cost implications. For example, fuel costs can be a huge ongoing financial burden, so it is worth looking at fuel economic models. Diesel tends to be much more efficient than petrol so this may also be a consideration. Also, engine size can affect tax brackets and parking costs in the UK so these ca affect ongoing costs.

It is important to remember that buying a car is a huge financial commitment and not something to be entered into lightly. By focussing on what you want from a car, and knowing how much you are willing to pay will greatly effect the savings you can make when purchasing your next car.

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