Budget Stretching Ideas: Cutting New Car Costs

Looking ahead and thinking about the expenses you may face in the future is one way to avoid sticker shock or buyer’s remorse when buying a new car.

Experts say most people expect the purchase price, taxes, and registration fees associated with a vehicle, but many forget how high priced certain vehicles can be. Fortunately, there are ways to keep insurance costs down and maintain the type and amount of coverage a new car typically requires.

Here are some tips to help you control costs, from the price tag to insurance premiums:

• What type of vehicle best suits your needs and decide in advance how much money you can afford to spend.
• The Institute for Highway Safety had test and analysis videos, so look into the crash test and accident data.
• To negotiate the best deal, consult with several dealers and get a firm quote from each in writing.
• What about financing and will your rates vary between institutions, so shop around?

Insurance cost:

It is advisable to check how much it will cost to insure this type of car before buying it. Talk to your independent insurance agent; they might save you some money. Independent agents, as opposed to “captive” agents, who represent only one company, offer products for many insurance companies. More options and more opportunities is what this means for you to find the best service and coverage at the right price.

Ask your independent insurance agent to look at options to help you keep your coverage costs down.

Here are some questions to ask your insurance agent:

• My car has security elements, can I get a discount? Many carriers offer discounts for security features that reduce the risk of injury or theft. The value of the car, the cost to repair it, and its overall safety record and likelihood of theft is what your auto insurance premiums are based on.
• Claims Handling – How does this insurance company handle claims? Will they be there 24 hours a day when you need them? Price is not the only reason you should consider.
• What are my coverage needs? The age of your car, your personal situation, and other factors may vary your specific needs.

Select an independent agent who will take the time to answer your questions and can help you find the right mix of price, service and coverages you need.

Some of these agents have been in the business for a long time and know solutions to save money on your car insurance.