Buying a car is an important decision – one where you can never be sure if your hard-earned money is attaining the value that it deserves. Up until recently, the common way to buy a car was through a traditional dealership whose pricing structure is market-driven, meaning cars are priced according to the maximum dollar amount that their customer is convinced to pay. These profit margins, along with hidden fees dealers receive when providing loans and selling warranty products, are how dealerships make their profit. What if, instead of going into the dealer’s pocket, those extra dollars were used to change your financial future?
Here’s how to keep that money in your NET worth, instead of on a dealer’s spreadsheet.
Buying a car online is growing rapidly in popularity so it’s critical to choose a licensed dealer with a proven track-record: one that offers complete transparency so you can literally see the the wholesale-to-retail savings. On a car valued between $10,000 to $20,000 the savings when buying wholesale often ranges from $2,000 to $5,000. Generally, the more expensive the car, the more you save. Savings can be $10,000.00 or more on a $50,000 vehicle.
Here’s an example of how your savings can be affected by investing the money you save when buying wholesale:
Let’s say you’re 35 years old, buy a car and save $4,000.00. Then invest that savings toward your retirement at an average investment return of an annualized 6.5% growth rate in a balanced portfolio considered moderate risk.
If you buy a newer car every 5 years, here’s an example of how your saving might grow until retirement when you reach 65 years old if you saved an average of 4,000 per car using that same annualized 6.5% growth rate.
These are just some examples of how compound interest growth can impact your future savings.
How do you find an established auto dealer that will sell you vehicles at wholesale cost? The old saying of “trust but verify” applies here. In fact, consider this, “verifying then trust”. A little research goes a long, long way. Search Google for articles or interviews of dealers to see if they share in values similar to yours.
According to Forbes, one such dealership is SheCar, Inc., a woman-owned licensed auto dealer that takes the time to find a car or truck that meets your criteria and saves literally thousands of dollars.
If you or someone you know are in the market for a new vehicle and wish to avoid the markup and pressure tactics of traditional auto dealerships, take a tour of the buying process with SheCar at SheCar.com. Browse Google Reviews and check out some of their news coverage. (Forbes.com, NBC News, NPR)
Your bottom-line will thank you!