Today I wanted to cover ways to save when buying a vehicle!
It actually doesn’t matter if you are buying a car, truck, suv or even a scooter. Part of having a side hustle is also knowing how to utilize the money you make from your side hustle (or even your regular job).
One of my favorite ways to save money when buying a vehicle is to deal directly with MY bank. If you have a great relationship with your bank, then don’t miss out on the opportunity to save money on your next vehicle purchase.
The process is actually really simple so let’s dive into how it all works.
- Contact your bank (or stop by) and tell them that you are in the market to make a purchase.
- They will likely ask you specifics about what you are wanting to purchase. In my case, I knew that I wanted a specific SUV but I had not found the right fit for me. However, I was able to tell the bank a price range that would work for my budget.
- You don’t need to have all of the details (VIN, Year, etc.) but you should have some reasonable ranges to supply to the bank.
- For Example, I knew that I wanted a Ford Edge and I knew that I wanted a price range between 12K-16K.
- This would allow my payments to be around $200.00 per month, which worked perfectly with my budget considering that this was a second car and I planned on keeping my luxury vehicle (with the luxury payment). 🙂Therefore this second car had to be practical an inexpensive! Period! The End!
- The bank will run your credit and tell you how much are you approved for and in my case I was approved for 16K.
- Be sure to clarify with your bank if there are any restrictions for your purchase. Examples include, little car lots, independent dealers, friends, family, etc. Most banks will require you to purchase from a reputable dealership. I use Bank of America and they had dealership requirements.
- Next….go shopping!
- This piece is IMPORTANT…..DO NOT tell the dealer that you have already secured financing! I will explain why later on in this post.
- Once you locate the vehicle that is within your approved range, then you can still negotiate with the dealer to get the price lowered. Even if it is $250, $500 or $1,000 every little bit counts! I personally negotiated $1,500 off of the price they originally wanted for the vehicle.
- Next, you and the dealer will shake hands on the price (or maybe you just simply agree verbally, either way works). 🙂
- The sales person will now want to start discussing the financing. If they mention the financing at any time before now, then you simply tell them that you will be ready to discuss the financing when you have both agreed to the final price on the car.
- Be sure to clarify that your final price includes TTL – Tax, Title & License, otherwise your savings from your negotiations will be going towards the TTL. (I like to refer to my final price as the “out the door” price as that seems to be a universal term with all of the dealers).
- So you both agree on the “out the door” price! Congratulations, you did it!! You are about to own that vehicle.
- Here comes the fun part.
- The sales person will say great, lets talk about financing. This is when you drop the hammer and tell them that you already have the financing secured. You politely ask if they could have the papers drawn up.
- Some dealerships have relationships with certain banks and could send a copy of the paperwork to your bank for review. If so, that’s fantastic…one less step for you. However, if they do not, then you will need to call your bank and provide them with the details of the purchase.
- Once your bank agrees to the purchase, then the bank will wire the money into your bank account.
- You write a check to the dealership for the purchase of the vehicle and you are done!
It is a great way to maintain control over your personal finances and be able to purchase a vehicle relatively quickly.
I hope that you will give this a try. I would love to hear your feedback afterwards or if you have used this method before.
Until next time my friends, Christie