Some lenders may not allow down payments to be made in anything but cash, while others accept credit card payments. Car buyers who have cash back credit cards can use those cards when making down payments and/or paying the taxes on the vehicle to reduce the initial costs of buying the car. For example, with a credit card rewards card with 2 percent cash back on every charged purchase, buyers can then lower the cost of that down payment by 2 percent by simply using their cards when making the payment. Just be sure to pay the balance in full when the bill is due, as credit card interest charges can negate any savings you might earn.
3. Carefully read the service contract.
Many dealerships now offer service contracts that can be rolled into monthly payments. These contracts may cover certain maintenance costs as defined in the agreement. Each auto service contract is different, and some may just be offering duplicate coverage already provided by the manufacturers’ warranty.
Buyers always have the option to decline the service contract and should never agree to it without first reading the entire contract. Requesting to do so can be difficult, as service contracts are often proposed as buyers finalize their financing agreements, and many packages must be accepted on-site before the loan is finalized. But buyers have the right to take their time and read the contracts. New cars are expensive, but buyers can employ various strategies to save money before signing on the dotted line.