Are you in the market for a new Mercedes and want to know how to save some money on your purchase? Who wouldn’t want to be a smart shopper and get the best value for their money?
We know that buying a new car is exciting, and it might lead to impulsive decisions, but before you jump in, take a moment to do your research. Remember that you can save money while buying a new car.
There are numerous ways for you to save money when buying a car. In this article, we look at how you can save money when buying a new Mercedes.
What Is The Actual Cost Of The Car?
It is critical to know that when you walk into the dealership and see a price, it is not necessarily the best price. Let us look at the difference between MSRP and the dealer price. MSRP stands for Manufacturer’s Suggested Retail Price.
The manufacturers know precisely how much it costs to make your new Mercedes; they also know what price they want you to pay for the car. This is where the MSRP comes in; the manufacturer gives the dealerships the minimum price to charge their vehicles. This is, of course, the best possible price that you can get for the car.
Not all dealers work for the manufactures; they might only buy the cars from them. So the dealer would take the cost of purchasing the vehicle and add any additional expenses that they need to pay to get the car to their dealership and work it into your new cars’ price.
Let’s use an example where the dealer uses Vehicle Haul, a transport company with experience to transport the cars to the dealership from the manufacturer. Vehicle Haul will charge the company a shipping fee which the company would add to their selling price.
Don’t Be Afraid To Negotiate
As explained, you can go to the manufacturer’s website and then use the auto transport and car shipping calculator to calculate the cost for your car. If the difference between the dealer price and the online price is significant, then choose to save money by using the online method and buying the car straight from the manufacturer.
However, if you decide to make use of a dealer, then don’t be afraid to negotiate. You now know that the dealer works at their own additional cost into the car price and that you can probably get the car far cheaper at a manufacturer, so use that to your advantage.
Go to the dealer only after you have done your research; by doing your research, you will be able to walk into the dealership with a reasonable price point, which gives you the ability to effectively negotiate a better price.
Trade-In Your Old Car
Use your old car as a deposit. Most dealerships make it possible for you to easily trade-in your current car with them. By trading in your current car, you can cut down the overall cost of the loan that you may need to apply for. With a smaller loan, you can save money by reducing the amount of interest payable on the loans.
To use an easy example, you buy a car for $40,000, and your current car’s value is $15,000. By trading your car, you can cut the loan down to $25,000. If you work on a 10% interest payment for the loan, you would have to pay $10,992.91 interest on a $40,000 loan. Whereas on a $25,000 loan, your interest would be $6,870.57. On the interest alone, you can save $4,122.34 by trading in your car.
Pay Cash If You Can
As you can see in the example above, you can save a lot of money by taking out a smaller loan. Now, if you want to save even more money, you should buy the car in cash if possible. This way, you can cut out the interest costs altogether.
It is sometimes more beneficial for you to wait and take the time to save for a new car. Besides cutting out the insurance cost, the dealer might also give you a discount because you are paying cash. This might result in an even more significant saving on your car.
The most important factors that you need to remember when buying a new Mercedes are being patient, doing your research, and shopping around. The first best car that comes your way is not necessarily the best deal that you can get.