Buying a new vehicle can be a stressful undertaking. The average cost of a new or used car is approximately $10,000-$25,000, making the process of buying one a significant financial commitment for any average household. The following tips may help you save a great deal of money on your next purchase.

1. Government Auctions

Tens of thousands of motors are seized by the government and other agencies every year. The cost of holding these vehicles is vast, which is why they are all speedily sold off in government and police auctions, usually at shockingly low prices. Join a web site which offers access to government and law enforcement auction listings. You will learn which auctions occur nearest to you, as well as gain access to auctions which take place online.

2. Online Auctions

If seized cars are not "your thing", be aware that the internet offers many opportunities for car buyers. Auction sites in particular such as eBay.com offer many avenues to exploit. If you're not in a hurry to buy a car, a wise strategy is to take your time watching and bidding on offers. In time, you are likely to come across an offer which has been significantly undervalued by the seller, mostly due to lack of understanding. By taking advantage of such offers, you can save a packet.

3. It Doesn't Have to Be Brand New

If you must buy from a dealership, at least take into account that the car you purchase doesn't have to be brand new. The value of new cars decreases rapidly. As soon as the car is driven off the dealership drive, it's already dropped in value by a few percent. Instead of buying a brand new car, buy one that's just a few years old. Most car dealerships sell older cars at a heavy discount. You can get a well maintained used car, certified by the dealership, for thousands of dollars less than what you might pay for a new one.

4. Trade In Your Old Vehicle

Many dealerships allow you to trade in your old vehicle when buying a new one, the value of which is deducted from the price. Learn the trade-in value of your vehicle and you might be surprised at how much cash it can save you.

5. Take Advantage of Discounts

When buying a new car, you may be entitled to a discount if you're a veteran, a recent graduate or even a newly wed. Don't hesitate to ask about applicable rebates and savings.

6. Don't Be Too Picky

Many new car buyers request custom-painted models. Don't be so picky. Opt for a model already available on the shopfloor. Shipping costs and custom order expenses will thus be avoided. With the car in front of you, you may also be able to negotiate a better deal with the dealership.

7. Consider Buying the Test-drive

All dealerships sell the cars they use for customer test-drives. Such vehicles are usually in good working order and are fully kitted out with all the extras. If you like a particular car, ask your dealership when the test-drive specimen might go on sale. As it's considered used, you can negotiate a significant discount.

8. Save On Your Financing

A large down payment and a respectable credit rating can help you save a lot of cash on your auto financing, not to mention give you room to negotiate for a lower interest rate. Check up on your credit rating before deciding to buy a car and start saving money for the down payment. The larger your down payment, the greater your savings will be over the course of the loan.

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