Whether you really need a new car or you are just tired of your old one, it pays to be careful when it is time to make a deal on your next vehicle. To save yourself money and regret, avoid these common mistakes made by car buyers.
Buying a Car You Cannot Afford
Car dealers and financiers will bend over backwards to sell you the most expensive car you can buy. However, being able to qualify for a loan to purchase an expensive car is not the same as being able to afford it. Don’t let yourself get talked into a deal that will break your budget. Know what you can afford going in, and don’t cave in to a salesman’s pressure. Remember, that “new car smell” will wear off in a few months, but you will be stuck with the payments for a long time. If you take out a loan for a car that you can’t afford, you may even find yourself in need of an auto loan refinance just to keep the car.
Focusing Too Much on Monthly Payments
A low monthly payment sounds great, but beware. There are many pitfalls when car buyers negotiate their purchases solely on payments. Lease deals with final balloon installments or auto loans with 84 month terms may decrease the monthly payments, but they will cost you much more on the bottom line. Low payments also make it likely that in a short time you will find yourself owing more money on the car than it will be worth.
Not Doing Your Research
How can you know if you are getting a good deal on a car? You can’t unless you do some research before you buy. You can use sources like consumer reports or kelly blue book for your research. Buyers who sit down to negotiate a price without doing their research are likely to pay too much. Don’t make this mistake. Find out how much you should expect to pay for the car you are buying in your local market. Use that knowledge to make certain you get a fair deal.
Failing to Shop for a Better Price
Some car dealers give better deals than others, but how will you know who has the best deal unless you shop around? Competition in the marketplace is a buyer’s friend. Use it to your advantage. Having two dealers bidding against one another for your business will result in a better price for you. You may even get a few fringe benefits like reduced prices on oil changes or other services for your new vehicle.
Not Taking a Test Drive
Surprisingly, more and more people are buying a car without driving it first. Some buyers even purchase cars online before seeing the cars in person. Be smart, and never buy a car without giving it a good test drive so that you know what you are getting. Don’t assume that the car you want has a smooth, quiet ride. Find out for yourself before you buy so that you don’t get trapped in a car you hate to drive.
Choosing the Wrong Kind of Car
Some people dream of having a sports car, an SUV, or a full-size truck only to find that their dreams did not live up to the reality of owning the vehicle. Don’t let this happen to you. If you are thinking of buying a type of car that you have not owned before, make sure it is right for you before buying it. Consider whether the car has enough space, is comfortable for you to drive, gets sufficient gas mileage, and is affordable to insure. Do some research on the type of car you are considering, or ask for an opinion from someone you know who owns a similar car.
