*This is a sponsored post.  All opinions are my own.

How to Save Money When Buying a Car:

You are reading this because you probably need a new car, but purchasing a new or used car may not be in your budget right now.  Whether you can afford one or not, you still need one.  So what do you do? If the reason you need a new car was because of an accident, you may be able to get some cash from your totaled car. Plus, I have 4 more tips on how you can pinch your pennies just a bit to make car buying the most affordable it can be.  There are ways to save on your automobile purchase and maintenance costs, but you just have to know what to look for and how to get your discounts. Here are your tips to help you get some wheels without breaking the bank.

Be Realistic

Be realistic in what you can afford to buy today and stop drooling over Lamborghini’s that are not in your price range.  . Look over your budget with an accountant’s eye and make certain you can afford car, insurance, maintenance, and service payments. You never know when your vehicle will break down, and when it’s time to have the brake system replaced, you have to be able to afford the service visit. In fact, having an emergency fund on hand is your best bet in preparation for car maintenance costs.  When making a decision on the make and model of your potential new car, don’t go over your budget. Be real in what you can afford.

Shop Thrifty

Once you know what you can spend monthly, say $500 per month on your car including fuel costs, now, start looking for your vehicle that fits the bill. With this budget, your best bet is to start in the used lot, but don’t give in to your nightmare images of used car sales people and clunker options. This really isn’t the case anymore, which is why buying a car can be affordable these days.

Several years back, dealers began to understand the benefit of selling used vehicles as much as new ones. After the economic nosedives in 2007 and 2008, many people have adopted a tight approach to their expenses. As such, dealers take the time to stock their lots full of used cars that are in fantastic shape. In fact, they certify their reliability, so what was termed “used”once is no longer how “used” now is termed now.  Standards on used cars have increased, which is to the benefit of the thrifty car buyer.  .

Even if you can spend whatever you want on your vehicle, check out the used options first. You may find a great vehicle that’s hardly been driven. You must make your monthly car payments or run the risk of ruining your credit, so shop thrifty and look over as many options as possible.  Also with the availability of Kelly Blue Book, you can look up the exact value of a used car, knowing the approximate price you should pay and if a dealer is asking too much.

Also consider how much money you can make off of your current car.  Are you going to sell the car you are driving now?  Be sure to subtract the amount of money you can make from selling your car from the total purchase price of the new car you look to buy.  Even if your car is in such bad shape that no one would want to buy it – consider selling it for parts.  You may be able to make a little for what you thought should all just be trashed!

Financing

Your best bet is pay for your car in cash, but few can do that.  My dad taught me from a young age that you will always have a monthly car payment.  You either pay yourself (interest free) or the bank.  If you pay yourself (the most economic choice), you are always saving up for your next car and will never have to pay interest.

If you must finance your vehicle, you’ll want to shop around for your car loan. Oftentimes, the dealer actually isn’t the best place to secure your funding. They have tricks that tack on a ton of money to your vehicle’s final price that can as much as double what you thought you were paying.

In most cases, it’s better to pick out a car you want and then finance it independently. When you do it this way, you stand a better chance of locking into a lower interest rate and better loan term. You also deal with an honesty you might not find at even the most trustworthy car dealership. The finance company doesn’t make its money selling you cars. Learn more here about automobile financing.

Insurance Cost Cutters

Another advantage to purchasing used instead of new is you will save money on your automobile insurance. You may have your sights on that Lamborghini, but do you know how much it costs to insure that baby? Don’t get a quote unless you’re seated! Used cars alone generally shaves some money off your annual insurance premium rates.

You can also save on car insurance if you use a company that gives you home owners insurance as well.  When you use the same company for both, you will often times get a discount!  Shop for insurance just as you would your car. Check with several different companies to get as many quotes as possible. Ask for a complete list of discounts each company offers and see which ones you qualify for. Many companies also discount your rate if you pay for one year all at once or set up auto-pay options for your account.  You may also be able to cut insurance costs by investing in a backup camera (like these from TadiBrothers). Many insurance providers will offer lower rates if you are recording your journeys.

You can afford a used (or new) vehicle if you do your homework. Be reasonable and pinch your pennies where you can by finding discounts on the car and all related costs.

Here is some more great money saving advice you may want to check out:

5 Tips on Getting The Perfect Car at the Perfect Price

How To Make Living on a Budget FUN!

How To Build An Emergency Fund

*This is a sponsored post by Auto Loan Solutions and TadiSolutions.  All opnions are my own.*