When you purchase a luxury vehicle, you get to join a special sort of auto club. You could literally join an auto club for luxury car owners, but we’re talking about the kind of club that needs no formal getup. When you’re cruising around town with your windows rolled down, you get to hold your head high and bask in the stylish aura of your ride. It will never be more satisfying to swing your car keys around your fingers.
Of course, joining that auto club comes with a price. You don’t want to be the auto version of “house poor,” where you spend so much money paying for your vehicle that you don’t have any money to drive it anywhere. Because luxury cars are so expensive, you should try and do whatever you can to minimize the cost of your transaction.
Here are a few tips on how to save money when you’re purchasing a luxury vehicle.
Get Pre-Approved for an Auto Loan
If you’re going to get financing for your luxury car, always get pre-approved for a loan by your lender. No matter how much cash you have on hand, it’s just smart money management. When you get pre-approved, you’ll know exactly how much you’ll be able to finance through a loan. You’re also more likely to get a good interest rate through an auto loan than if you were to seek dealer financing.
A pre-approved loan will also help you out during negotiations with the dealer. If you’re trying to buy a vehicle that’s a slightly higher price than your loan, you’ll have a good reason to ask for a lower price that matches the loan amount.
You could save a lot of money by buying a used luxury vehicle rather than a brand-new one. Some prospective luxury vehicle owners scoff at this idea—isn’t it more prestigious to buy a car that’s right out of the factory? Factory-smactory. Doesn’t every vehicle become a used vehicle after a week of driving it around?
In all seriousness, buying used is a great way to bring home a stylish car without breaking the bank. You might be surprised at how many used vehicles are in great condition. Consider buying a certified pre-owned vehicle, if you’re really concerned about it. A certified car is a used car that has been meticulously maintained though manufacturer-approved mechanics. Take a look at these certified Mercedes vehicles for sale and see for yourself. They’re all in prime condition, they look stunning, and they cost only a fraction of the price of a new luxury vehicle.
Don’t assume that all luxury vehicles will go for the same price. Every vehicle has a manufacturer’s suggested retail price (MSRP), which is one the manufacturer recommends the price at which the dealer should sell the car. It’s important for you to do research on your luxury vehicle’s MSRP. Never buy from a dealer who is selling the car for higher than it’s MSRP. Seek dealers who are willing to sell at a price lower than its MSRP.
Visit multiple dealers and find the best possible price. Don’t be afraid to travel to dealerships in nearby towns. Sometimes you’ll find dealers just outside of your area who have better deals than your local dealerships.
Make sure to shop prices on auto insurance, too. Auto insurance will add to your monthly auto costs, so find the insurance provider with good rates.
Trade-in Your Current Vehicle
If you currently own a vehicle, whether a Bentley or a Toyota, consider trading it in when you buy your luxury car. Some dealers, mostly used car dealers, will accept trade ins, and you can apply the cash toward the new vehicle you’re buying. Don’t get your hopes up—you won’t receive as much for your trade in as what you bought that vehicle for. And it’s doubtful that you’ll receive enough compensation to pay for your new vehicle. But a trade-in could significantly reduce the price of your luxury car. If you can’t depart with your whole car, you might be able to remove parts that you don’t need and sell the used parts online.
Buy from a Trustworthy Dealer
This tip applies mostly for those who are buying used vehicles. If you’re going to buy a used luxury car, it’s important that you have the car thoroughly inspected before you make the purchased. Used car dealers are notorious for trying to conceal the real condition of a vehicle. Always arrange to have the vehicle inspected at an auto shop that you trust. If the dealer refuses to let you have the car inspected by a mechanic of your choice, it’s likely that there could be serious issues with the vehicle. It’s important to get a vehicle that’s in good condition so you can stay safe on the road.
Are you ready to join the club? With money-saving on your mind, you’ll be able to get a top luxury car at a lesser cost.
Henry Lares is still early into his career as tech reporter but has already had his work published in many major publications including Tech Crunch and the Huffington Post. In regards to academics, Henry earned an engineering degree from Apex Technical School. Henry has a passion for emerging technology and covers upcoming products and breakthroughs in science and tech.