Car buying can be an exciting and stressful period. You’re excited to buy a new car but are concerned about getting a bad deal at the dealership.
You aren’t alone in feeling this way, either. Many people consider buying a car one of their most stressful financial decisions.
If you want to avoid buying a bad car, it pays to understand common Car Buying Errors. Below are some of the most common mistakes people make when buying cars.
1. Not Getting a Loan Pre-Approval
Many people walk onto their local car dealership lot without any preparation. They expect to handle everything there, so they don’t believe they need to do much else. While you can go this route, it’s not always the best choice if you plan to take a loan.
Dealerships make a lot of their money by selling loans to banks. They get a commission for everyone they sign. You have some negotiating power if you go to a dealership with a pre-approved letter from another lender.
Your dealer will want to sign you on their loan service, which means you may end up with a better deal if you negotiate. That means less interest paid over time and a lot of saved money for you.
2. Only Looking for New Cars
People don’t want to deal with issues when looking at buying cars. Because of that, they ignore new cars because they don’t want to bother with unknown issues in the future.
That’s smart if you buy from a bad seller, but you won’t always get a bad deal. You can find reputable sellers and used car dealers that will sell you great cars.
Make sure to consider all the pros and cons of the new vs. used cars debate. When you do, you’ll be able to find the perfect car for your needs and budget.
3. Doing Zero Research
Not doing any research before you head to the car lot is one of the worst ways to shop for a car. There are many types of cars with many different models, so you need to learn about each to make an informed choice.
Make a list of all the features you want in your car. Once you do, you can look at the cars released in the past several years with those features.
Doing this means you can narrow your list of desired cars before heading to a car lot. It will make you less susceptible to sales tacts when you have a better idea of what you want in a car. You can get exactly what you want instead of getting pressured into buying a car that doesn’t meet your needs.
Doing this also makes comparing car prices easier since you know what you should be paying beforehand and don’t end up paying more at the dealer.
Check out this great resource to learn more about what to look for with cars.
4. Not Walking Away
Some people believe they’re committed to buying a car when they walk onto a car lot. Since they’re determined to purchase a vehicle, they decide not to leave until they buy a new car.
However, doing this is a mistake. It’s easy to get pressured into buying something you don’t want when you convince yourself that you need to buy something at the moment.
Even if a dealership tries to get you to make a decision immediately, don’t do so unless you’re convinced you’re making the right choice. Feel free to walk away from the dealership and head to the other dealers in your area to see the options.
You never know when you’ll find a great deal by stepping away.
5. Ignoring Trade-In Value
Many people look at the price of the car they want and dismiss it because of the cost. That’s not surprising, either. New cars can be expensive if you have to pay full price.
However, that price isn’t always what you’ll pay. You also have to consider how much your current car is worth and factor that into your price.
The dealer will discount the trade-in value of your current car when giving you your price. In many cases, you can save thousands of dollars by trading your current car with your dealer. That can put many cars into your budget that you would otherwise have to avoid.
If you want to learn what the fair market value for your car currently is, check the blue book value to get more information. You may not get that price at a dealer, but you should get close.
6. Skipping a Test Drive
The last thing you should do when buying a new car is to purchase it without taking it for a drive. An online sales pitch and dealer can talk a good game, but that doesn’t mean every car will meet your expectations.
Every dealer should be willing to let you take a car for a spin. You can take it through the city roads and onto the interstate to see how it performs at higher speeds.
You can also use a test drive to see if any weird issues arise when a car is on the road. When you do your due diligence test driving cars, you’ll avoid potential bad purchases.
Don’t Make the Common Car Buying Errors
You’re making a big decision when you purchase a car. You need to rely on it to get you to your destination in one piece and not spend a small fortune in the process.
Unfortunately, many common car buying errors will cause you to end up with a car that doesn’t meet your needs. Remember the guide above to avoid common errors when buying cars.
Check out the blog to find other tips that will help you get the most from other parts of your life.