Buying a car can be an exciting and celebratory experience. But it can also be a complex process through which you might end up overpaying hundreds or thousands of dollars or with a car that you won’t be happy with down the road. To avoid that, here are some mistakes to avoid when buying a car.
Key Takeaways:
- Buying a car is exciting, but it’s also easy to be overwhelmed.
- Preparation and research should be your friends.
- Don’t go to the dealership without getting preapproved for an auto loan, knowing the amount you want to pay, and having a list of necessary features.
- There’s more to a car than its monthly payment.
Choosing a Car that Doesn’t Meet Your Needs
Believe it or not, buying a car is an emotional decision. Oftentimes, what you drive is an extension of who you are. It can even be tempting to pick a car based on how it looks and the status it conveys. Unfortunately, becoming infatuated with a single car can blind you to alternative cars that could be better for your needs. It can also make you skip thoroughly researching a car’s ratings, reliability, reviews, safety, and pricing information.
To avoid that, try leaving emotions out of the car-buying process. Instead, try doing your homework, comparing different models, and assessing your real wants and needs. For instance, if you travel for work, a gas-guzzling muscle vehicle may be the best idea. And if you’re planning to start a family, that two-seat sports car won’t make sense for long.
Using the Monthly Payments as the Only Yardstick
Some salespeople tend to focus on a monthly-payment figure while negotiating a deal. In fact, if you’re thinking of that monthly payment only, the salesperson has the opportunity to tie you to a longer loan-repayment period, which could cost you more interest. The salesperson could also lump the new-vehicle price, trade-in value, and leasing terms together, giving them too much latitude to give you a “good price” in one area while making up for it in another. So, instead, insist on negotiating one thing at a time. For instance, settler on the car’s price first, then discuss the trade-in, and financing separately.
Not Getting Preapproved for Financing
You could be a whiz at negotiating a good deal, but if you don’t choose your financing just as carefully, you might lose everything you’ve saved on the car’s purchase price and more. If you haven’t researched financing terms and options, you could be vulnerable to being manipulated by the seller. Essentially, if you don’t shop around for the best auto loans, you’ll be stuck with what dealerships will give you, and they won’t have any incentive to make a competitive rate. So instead, you should comparison-shop for financing terms and get prequalified for an auto loan before heading to the dealership. Other benefits of getting preapproved for financing include:
- Offers you a chance to set up your loan with the right down payment and loan term
- It Simplifies dealership negotiations by allowing you to focus on the out-the-door price
- Serves as a bargaining chip in getting the dealer to offer better rates
Buying Unnecessary Extras
Sometimes, a seller could load up a car with profit-boosters, which can include rustproofing, anti-theft devices, paint protectant, fabric protection, and add-ons like wheel locks and mudguards. These extras are often unnecessary and can be a waste of your money. For instance, vehicle bodies are already coated to protect against rust, so why do you need rustproofing? You can also treat upholstery and apply paint protectant yourself with good off-the-shelf products that cost only a few dollars. So, instead, you should check for those items on the bill of sale, and if you haven’t agreed to them, cross them out and refuse to pay for them.
Underestimating the Value of Modern Safety Features
Today’s cars offer a wide array of advanced safety features. But many buyers aren’t aware of which are most important or what to look for when comparing cars. Electronic stability control (ESC), antilock brake systems (ABS), and head-protecting side airbags, for example, are efficient and well worth the money. ESC can significantly lower fatalities and accidents while head-protecting side airbags are crucial in preventing fatalities in side impacts.
Skipping the Test Drive
Test driving is one of the most crucial parts of the car-buying process. Many vehicles might look good on paper, especially in glossy brochure pictures, but the test drive is your best chance to see how the car measures up to expectations and how well it fits you and your loved ones. You don’t want any surprises after you’ve bought a car. In fact, skipping the test drive is a sure recipe for buyer remorse. As such, it’s vital to take ample time to conduct a complete test drive and perform a thorough walk-around of the car you’re considering.
Being Afraid to Walk Away
Shoppers who keep their options open and visit different dealerships are often in a far better position to negotiate. However, if you have only one option, it’s easy to get emotional about the purchase or stubborn about the time you’ve spent trying to get the right price for it. Sometimes, you might think you’ve spent too much time on the process and simply want to get it done. So, instead of walking away, you accept terms you didn’t want and ultimately resent the purchase. To avoid that, take your time researching comparable vehicles, visiting dealerships to view inventory, and securing outside financing.
Avoid These Mistakes When Buying a Car
There’s a lot that goes into buying a car and it’s easy to be overwhelmed. Preparation and research should be your friends. Don’t go to the dealership without getting preapproved for an auto loan, knowing the amount you want to pay, and having a list of necessary features. Keep in mind that there’s more to a car than its monthly payment. For more information about mistakes to avoid when buying a car, consult our auto experts today!
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