Tips for Saving Money When Buying a Luxury Vehicle

Just because you want to own a luxury vehicle doesn’t necessarily mean you have to max-out your budget. Our money-saving tips can help you make a smart and satisfying purchase. 

Plan Financially 

Since your financial situation is an important factor in how much you’ll actually end up spending on your car, you should make sure your finances are in order. Even if you have a high-earning income, you can also make improvements to put yourself in the best position possible. Before initiating the car-buying process, you should:

  • Review your monthly budget and make sure you can afford the high payments usually associated with luxury cars. An app or budgeting tool can be helpful.

  • Work on improving your credit score, even it’s already considered pretty good, it can most likely be higher. If it is low, consider using a credit repair service.

  • Save up for a down payment. Set up a savings account just for your car purchase if you don’t already have one or get an app that allows you to save and grow your money.

By checking off this list, you can save on your auto loan by securing a lower APR and car payments. However, whatever your financial situation, there is an auto loan for everyone, even if you have poor credit.

Do Your Research

It’s no secret that car dealers tend to have a bad reputation for trying to swindle buyers, but you don’t really have to worry about that if you know what you’re talking about. Knowing exactly what you want, like whether it’s the 2019 Audi A4 or the Audi Q5, and how much that specific year, make, and model should cost you, you can avoid getting taken advantage of. Before setting out for a day of car shopping, take some time to look into both the financial aspects and the features of the car. You should know:

  • The market value

  • Which add-on services you’ll actually benefit from

  • What type of financing option you want

  • What features you cannot live without 

All of this can be valuable when negotiating and help you decide which dealership to visit so you don’t waste time. In some cases, you’re going to want to shop around online first, especially if you live in a small town. For instance, if you live in Baltimore or Timonium, MD, check out the local inventory in the surrounding area like the Audi dealership in Cockeysville to make sure where you go has the exact model you want in stock. 

Compare Vehicle Prices at Multiple Dealerships

Did you know that car prices can be drastically from dealership to dealership, even if they’re not that far apart? This might be because of the average income and cost of living in certain areas. It can also come down the dealer’s expenses including how they handle the shipping process or how much they pay in rent. Once you’ve found a few dealerships in the area that have the car you want, try to see which ones are offering competitive pricing. You may be able to haggle with them by using some proven negotiation tactics to knock off some of the additional expenses to get a better deal because they want to keep your business instead of losing you to their competitor down the highway.

Consider Changing Insurance Companies

Buying a luxury vehicle might also mean a spike in your insurance, depending on which one you buy. This isn’t always the case though. It can depend on personal factors as well as certain aspects of that particular vehicle, including:

  • Whether the car is commonly stolen

  • Crash test performance

  • Horsepower

  • Safety ratings 

Before whether you want to purchase a Mercedes, Porsche, BMW, or Audi, look into their average insurance costs and compare it to your current rate. If it’s significantly more, reach out to a few different companies for a quote to see if it’s worthwhile to make the switch to save money in the long-run. Some insurance providers even offer new car discounts

Whatever your circumstances, UnitedFinances can help you find the right auto loan with a reputable lender so you can become a proud owner of your dream car.