How I saved $6,000 on a car purchase?

My girlfriend selected a car that she wanted to buy for $42,000. I asked her if she can wait for a few days, 1 week later I bought the same car at $36,000.

All I did was follow a few simple steps of negotiation. Listed below are the steps you can also follow to save huge amounts of money when you buy a car (I saved $6,000 on a car purchase using these simple steps).

Step 1: Document your requirements exactly 

I documented exactly what I needed – Make, model, color, accessories. I listed everything so that there is no discussion required with any car dealer.

This is very important. Time is of essence – visiting any dealership will take a couple of hours, and however determined you are you will not be able to do more than 2-3 in an entire day.

While on the internet you can easily reach out to 15 – 20 within an hour.

Step 2: Find all the dealers in your area

Again, internet is your friend here. Go online and search all dealers in your neighborhood.

I suggest to think of neighborhood as something really broad – would you not drive 300 miles if you can save $2,000? If yes, then search for dealers in your city and neighboring cities.

Caste your net wide – you do not have to drive 300 miles later but it does not harm to know what the price difference is. May be the price difference will be enough to warrant a drive.

The only thing to keep in mind is: stay within your state. Handling out of state registrations might be something you would like to avoid.

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Buying vs leasing a car

Leasing is for rich people and buying is for people who want to stay rich. Let us examine the differences between buying vs leasing so that you can decide for yourself if buying is better for you or leasing is.

In my opinion, the primary (and perhaps) only advantage leasing offers over buying is the convenience of having a new car every 2-3 years. Still go through the complete post and decide for yourself.

Definitions – Buying vs Leasing

Let us start by defining buying vs leasing:

Everyone knows what buying a car means – it means you own the car, it is yours, you can use it for as long as you like, and sell it whenever you like.

On the other hand, leasing is renting. You do not own the car. The dealer owns the car, he rents it to you for a fixed period of time (usually anywhere from 2 to 4 years). You pay rent every month. At the end of the lease term, you return the car to the dealer.

Arguments people make

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