Save More on Car-Buying with Suze Orman’s Top 6 Tips

    You Won’t Believe Suze Orman’s Top 6 Car-Buying Tips – They’ll Save You More Money Than You Ever Imagined!

    Buying a car can be an overwhelming and expensive process, especially in today’s challenging economic climate. With skyrocketing prices, it’s no wonder that consumers find it frustratingly difficult to get a good deal on a new or used vehicle. But fear not, as financial expert Suze Orman is here to share her invaluable tips on how to save money and make wise choices when purchasing a car.

    Suze Orman, a renowned celebrity author, podcaster, and financial advisor, is no stranger to emphasizing the importance of wise spending and making your money work for you. To achieve financial freedom, she urges individuals to avoid overpaying for anything and instead invest their extra savings towards retirement and other investment opportunities. And when it comes to buying a car, Orman’s advice is crystal clear.

    Let’s dive into Suze Orman’s top six car-buying tips that will help you save more money:

    1. Boost Your Credit Score

    Having a solid credit base is crucial when applying for a car loan. Whether you’re building your credit from scratch or recovering from a hit to your score, it’s essential to work on improving your credit before you start car shopping. To qualify for low-interest rates, aim for a credit score of at least 700. Orman recommends paying bills and credit card balances on time as a starting point to build a strong credit foundation.

    2. Buy on the Cheap

    Unless you have aspirations of owning a vintage, antique, or collector’s classic car, it’s wise to opt for a more affordable option. Remember, all cars, whether new or used, experience immediate depreciation once driven off the lot. Orman emphasizes the importance of buying the least expensive car possible, as every dollar saved on the down payment and monthly loan payment can be utilized for other purposes.

    3. Target a Gently Used Vehicle

    To minimize your expenses, always consider purchasing a used car. Orman points out that the most significant drop in a car’s value occurs within the first two or three years. By opting for a vehicle that is only a few years old, you can avoid paying for the initial years of rapid depreciation. Look for a gently used car that you can rely on for several years after paying it off.

    4. Get a Three-Year Loan

    When choosing a car loan, it’s wise to opt for a term of no longer than three years. Orman strongly advises against leasing, highlighting it as a colossal waste of money. Paying interest over an extended period for a depreciating asset is a losing game. Even with increased maintenance costs associated with owning a used car, you’ll still save money by avoiding long payment terms.

    5. Shop Around for the Best Loan

    Just like shopping for a car, it’s essential to explore multiple options when it comes to securing a car loan. Orman cautions against blindly accepting the deal offered by a dealer and advises considering credit unions. Credit unions often offer at least a percentage point lower interest rate compared to regular banks. Furthermore, traditional car loans are generally preferred over using a home equity line of credit (HELOC) for a car loan. Orman believes that losing a car, though unfortunate, is a better outcome than losing your house.

    6. Get an EV Tax Break

    While the criteria for federal tax credits on electric vehicles (EVs) and plug-in hybrids have changed, there are still tax breaks available for both new and used EVs. However, it’s important to consider the upfront cost of purchasing an EV, as it may be significantly higher than that of conventional vehicles. Evaluate whether an EV aligns with your needs and financial situation before making a decision.

    By following Suze Orman’s expert advice, you can navigate the intricacies of the car-buying process and make informed choices that will save you money in the long run. Remember, buying a car is not an investment, as it loses value the moment you drive it off the lot. With Orman’s tips in mind, you can approach the car-buying experience with confidence and financial savvy.

    In conclusion, it’s crucial to approach car buying with a strategic mindset. Suze Orman’s six tips for car buyers provide invaluable insights into how to save more money and avoid overpaying. From boosting your credit score to targeting a gently used vehicle, these tips empower consumers to make educated decisions and optimize their finances. So, before embarking on your next car-buying journey, remember to incorporate Suze Orman’s advice to secure the best deal possible and put your hard-earned money to work for you.

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