Are you thinking about buying a new car? Whether you buy something used or brand new, there will be an expense, and it could see you out of pocket. It's for this reason that you will understandably want to save money where you can.

To help you make savings on your next car purchase, here are some suggestions we hope you find useful.

#1: Improve your car's resale value

If your current car is still roadworthy, you can either sell it or trade it in when buying your next purchase. But to ensure you make as much money as you possibly can, you should do what you can to improve your car's resale value. You can do this by getting on top of any repair issues and by ensuring it is clean and tidy, both inside and out. There are other suggestions in the linked article.

The money you make from your car will go towards your next purchase and will help you reduce the overall cost. 

#2: Compare financing options

Different dealers will offer different financing options so work out which will be the most cost-effective for you. Options can include Hire Purchase (HP), Personal Contract Purchase (PCP) and car leasing deals. There are pros and cons to each so weigh up your options carefully. Leasing can be a good idea if you change your car regularly, as your monthly payments will generally be less. The same is true if you sign up for PCP. However, you might prefer HP if you want to own the car outright. Consider all of your options and research different dealers before signing any contract. 

#3: Negotiate with the seller

The car might be advertised at a certain price but you won't always be expected to pay this. Many sellers will hike up the price a little to account for buyer negotiation so take this under consideration. If you can successfully negotiate something that is lower than the asking price, you will benefit yourself financially. Of course, this can be easier said than done, especially if you don't feel confident haggling. It might be that you decide to bring along a friend who is more confident speaking to a sales person than you, or you could practice haggling before visiting the dealer. The same applies if you are buying from a private seller. 

The following suggestions will help you negotiate a cheaper asking price:

• Find out what other sellers are offering for the same car and use this as leverage if prices are lower elsewhere.
• Ask them what discounts they offer - the seller will be obliged to tell you if you ask this outright. If they seem reluctant, tell them you will walk away with the car today if they can knock money off it.
• If buying a used car, check for any blemishes to the paintwork. Use these to negotiate a lower asking price.

If you're not happy with the deal you are being offered, tell the seller you will look elsewhere, even if your heart is set on the car you have seen. By doing so, the seller might try to keep you as a customer by giving you the price you were hoping for. If not, you have the freedom to find a similar car elsewhere at a cheaper price.

Finally

Buying a car is expensive but as we have discussed here, there are ways to make savings. Consider our suggestions the next time you're in the market for a new car and check out the other articles on our site for more useful advice.