Learn Which Car Buying Mistakes Will Cost You Bucks

For each of us, buying a car is like taking an important step towards fulfilling the American Dream. Cars have always been special to us and just the thought of buying that dream car makes us go over the moon.

This beautiful dream can turn into a nightmare when you make some mistakes. It is true that smart people learn from experience but one is smarter when he learns from others’ experiences. Get ready to know what the common car buying mistakes are. If you fall prey to any of these, your hard-earned money will go down the drain.

Say NO To Emotions

Yes, we all love cars and we are very passionate about it.  Having said that, don’t let emotions play a role in making decision. Car buying is an exciting and stimulating process but you must always let your grey matter do the talking.

If you are buying a car just because you like its color or interiors, it’s going to spell doom for you. By falling in love with a specific car model, you are only making things difficult. This is so because you are limiting your options from the very beginning.

If you are totally gung-ho over a single car, you will overlook other great options even if they are better in terms of pricing and reliability.

So, don’t be emotional and know your real needs. Take some time to review several car options. Once you know them, selecting a car make and model will be easy.

Ignoring Your Wallet

You must consider your affordability. Several people commit the mistake of thinking that a car loan will cover everything. But, this unrealistic assumption often leads to large debts. So, think of your budget well in advance. Whatever additional amount that remains after paying the bills can be considered for payments. Also, remember to keep some spare money for any emergency and don’t spend every extra penny on the car loan payment.

Putting Convenience Over Choice

Not all dealership lots are same. Not every dealer offers you the same car models. You must never commit the mistake of choosing your local dealer just out of convenience. You may be surprised to know that the same car is cheaper at a dealer who is just a few blocks away.

So, it is always important to de-limit your car search. The more options you will have, the lesser will be the chance of dissatisfaction in future. Internet will be very useful here. There are many websites that sell cars. It’s time you check them.

Reckless Research

Never take the dealer’s word. To be totally satisfied, you must do your own research. There are several reliable sites that offer car prices in different states and localities. KBB and Edmunds are few examples. If you pay attention to these references, you will get an average price of your chosen car. This will help you to know if the dealer is ripping you off or not.

If you are going for a new car, read reviews from auto industry experts and current car owners.

When you select used cars, make sure you get the Vehicle History Reports. All you need to do is get the VIN or the License Plate number and the State Information. You can get the reports by filling a request application on websites like Carfax and AutoCheck. Never take a decision without knowing all about the car’s history and the title. The car may look good to you but might have been flooded. So, do a thorough research and avoid the mistake of careless and incomplete research.

Test Drives Are Obsolete

Do you buy a house without taking a good look at it? Do you buy a dress just because the store attendant told you it’s great? You wouldn’t do that right; the same should be with test drives. Take the car for a spin around the block and get acquainted with it.  All Cars look good and glossy but their reality is best judged when you take it for a drive.

Mechanic Inspection Is Futile

In order to buy the car quickly, most people ignore mechanic inspection. You don’t want to buy a lemon, do you? To avoid any shocks in future, ask your trusted mechanic to inspect the car. This will also help you to know if there are any imminent problems.  Also, you will get to know about any hidden leaks, rust and damage.

Not Negotiating The Price Of Your Old Car

More number of used cars are sold in America. So, these cars are always in demand. This gives you an advantage if you are going for a trade-in. Don’t commit the mistake of accepting dealer’s price for your old car. Check your car’s value online and then negotiate it.

Sticker Price Is The Benchmark For Negotiating

Most buyers do know to negotiate but don’t know where to start from. And, the sticker price (Manufacturer’s Suggested Retail Price) is certainly not the starting point. You must start negotiating by looking at the invoice price (amount that the dealer pays to the manufacturer).This price should be the base of your negotiation. So, next time you go car shopping, remember to negotiate in the correct way.

Unnecessary Extras And Warranties Are Actually Necessary

Don’t think dealers can sell you add-ons when you don’t need them. Most car buyers consider that rust-proofing, paint protection, stain proofing the fabric and VIN etching can be cheaply done at the dealer’s place only. But, you can get all the additional work done from your mechanic or you can even do it on your own at a much lesser price.

If you are comfortable with the manufacturer’s warranty, you can do away with the extended warranty. It is impossible to avoid tax and registration fees. But, you can definitely negotiate advertising or administrative fees.

So, next time don’t think that you have to buy the add-ons compulsorily.

Financing Comes After Everything Else

Everything begins with the word money and you don’t want to be someone who completely forgets about it. You must consider car loans even before stepping foot in the dealer’s lot. If you don’t sort out your car loan deal beforehand, you are vulnerable to all types of frauds.

So, you must apply for an auto loan before everything else. While getting a car loan, never rely on a single bank or a financial institution. Shopping for your auto loan is as important as shopping for your car.  Check which lender is offering you the best deal, then go for it.

Monthly Payments Are More Important That The Actual Price

We are lazy to do the calculations and are often prone to “Hyperbolic Discounting” which means we pay more attention to present smaller rewards instead of larger benefits in future. Never commit this mistake of considering your monthly payments only.  Calculate the APR (Annual Percentage Ratio) and know the total price of your car loan. APR is the best way to compare car loans because it puts loan quotes on the same pedestal.

So next time you go car shopping, don’t take the bait. Avoid the slippery slope of these mistakes and your car dream will be fulfilled.

Happy Car Buying!