Buying a car is undoubtedly great fun for some of us and we can find ourselves caught up in this excitement. However, it is important to remember that buying a car is different from buying a pair of shoes. Unfortunately, if you don’t like your car after purchasing it, you can’t return it. Unless there is some defect in the vehicle, no dealership will take back a brand new car that has just been sold. Needless to mention, none of us want to find ourselves in such a situation. This is why it is important to avoid some common mistakes people make while purchasing a car.
- Inadequate Research: One of the biggest car buying mistakes is rushing. There are many different cars to choose from and there is no need to purchase the first one you come across. And do not stress over missing out on a car that has just been sold. Take your time to find out the type of vehicle that suits you and research the cars available in that particular category. Once you have done this, dive deeper to take a look at different models and trims. Find out detailed information about the reliability and gas mileage of different vehicles as well as depreciation and equipment. Finally, don’t get influenced by a dealer's advertising.
- The over-attraction for a Specific Model: This can be a costly mistake for two reasons. First of all, the salesman may quickly understand that you have set your heart on a specific model and may not show any flexibility in terms of price. Moreover, this may tunnel your vision from other available options that might be better for you. Please keep in mind that no dealership operates its business for losing money. There is no harm in expressing your interest in a specific car, but don’t show over-enthusiasm.
- Not Taking a Thorough Test Drive: Most of the dealerships have a planned route for a test drive. It has been observed that these routes mostly have only right turned. Therefore, once you are away from the dealership, request the salesman to let you drive the vehicle beyond a specific route. Do remember that a test drive is not just about finding faults. During the test drive, familiarize yourself with all the controls, knobs, and buttons. Find a comfortable driving position by adjusting the seat and figure out the blind spots by adjusting all the mirrors. Check the visibility in town and find out if it gets noisy while driving on the highway. Above everything, make sure you are comfortable.
- Negotiating Down from the M.S.R.P.: If you start your negotiations with the Manufacturer's Suggested Retail Price, you are surely going to overpay. Ideally, you should start negotiating from the dealer invoice. This is the amount the dealer pays to the car manufacturer. Interestingly, there can be a significant difference between the two prices. The best approach for you will be to contact different dealers for free online quotes. This will help you find out dealers that are more flexible on pricing.
- Focusing Only on Monthly Payments: A dealer can lower down your monthly payment just by extending the term of the lease or loan. However, because of additional interest charges, it will probably mean a higher cost for you. Please remember that all that matters to you is the overall price of the car. Therefore, even if the salesman tries to divert your attention from the price, keep coming back to it. Think about payment terms only after a price has been agreed upon.
- Relying on Financing from the Dealer: Please remember that the dealerships arrange to finance because they get paid for it. Therefore, there is no reason to rely solely on the dealer for financing. Instead, look for different auto financing options online. Credit Unions can be a good low-cost option. However, the lowest rates are available with the online financing platforms because they have no overhead.
If you are ready to purchase your new car, you may also seek help at Car Buying Strategies.
