Buying a car whether new or used is an exciting experience and one in which you do not indulge every day. The decision you make will in the end determine whether you spend the better part of your time in the next few years with your car in a mechanics shop or on the road enjoying your ride. Here are the most common mistakes which car buyers make while purchasing a car:
1. Showing openly how much they like the model: Even if you are totally into a model and it has been your dream to see that car in your driveway never show these feelings in the dealership. This will also be a major obstacle in you looking at any other alternative vehicles which might be better. Instead of going for a model you should look at your requirements and budget and then do the research as to which car would suit your needs the best. Also showing your emotions in the dealership might restrict your bargaining power.
2. Not doing the test drive: This is by far the most important step. There is no amount of knowledge and experience which can substitute an actual test drive as all the major problems in the car will show under test drive. Even if you are getting a used car from a private party insist on a longer test drive(even paying them a bit for their time would be good if you like the vehicle). Also besides the mechanical issue you would also come to know whether the vehicle fulfills your requirement. You can look at the detail tips for test drive.
3. Doing the negotiation based on sticker price: This is a very wrong negotiation tactic. In the end you might find that you have been given a deal which is $500 less than the sticker price and you might feel elated by it however actually you might be at a loss. It is always better to know the actual cost of vehicle for the dealership and then negotiating upwards. Many times the car maker offers rebate to the tune of $1000-$2000 to the dealership if they sell a particular model. Having a knowledge of where the dealership makes money is very helpful.
4. Doing negotiation based on monthly payment: While going for car financing the majority of buyers are concerned about the monthly payment they have to make on their car. This is a wrong way of negotiating. The dealership can easily decrease your monthly payment while increase their fees by increasing the loan period. Always negotiate on the interest rate you would have to pay. This is based in a large part on your credit history and hence make sure to check it beforehand.
5. Focusing on the “deal” instead of the car: Although you certainly would like to get a great deal at the dealership but still in the end you also need to make sure that you are getting a good car. It is also better not to go in the numbers until you have done the test drive and finalized the car you want to go for. So make sure that you have already done the research and have the alternatives of the right vehicle for you before you enter the dealership.
6. Going to dealership without prior finance research: You need to do complete and thorough research even before you enter the dealership. One of the parts is the financing of the car. You should know your budget, how much car you want, monthly payment you can afford, your credit score and if possible to go with a pre-approved no strings attached loan. This can improve your bargaining power at the dealership. Try to avoid the general car financing mistakes people make. Also it is good to know the various auto financing option available to you so you do not blindly go with whatever terms the dealer offers.
7. Overlooking the safety features: Although the safety features might inflate the cost of the car a bit but totally overlooking them is not a good choice. If possible going with the latest Electical Stability Control(ESC) and other devices is good and if you are not inclined at least go for the general safety features available today.
8. Going for unnecessary extras: Often when you are in the dealership they will try to sell you added features in the car. The exact cost of these should be calculated and their use should be known. These are a huge portion of the overall profit for the dealership however they might not be very beneficial for every customer. EX: you can do the VIN etching yourself spending a mere $30 instead of paying the dealership $200 to do it. Also not all models might require extended warranty. Some are reliable enough and also you might not be keeping the car for more than 5 years in which case it might not be of that much use. The dealership has huge overhead in terms of labor, land and maintenance and they would try to take every possible penny out of your pocket. It is worth it to know the general signs of trouble at the dealership and not going with every other thing they offer.
9. Loss in trade-in: Doing a proper research for the trade-in car is good. You should try different sources to know the exact price like kbb.com and nada.com which give very good estimate of the exact price of your car. If not getting the exact worth for your car you can also plan to sell it yourself. Following tips are very helpful while selling your trade-in vehicle.
10. Not getting the used car examined by a mechanic: Although this might cost you anywhere from $75-$150 it is worth the cost to go for independent examination of the car. If you are really interested in the vehicle and the deal you are getting is good enough you can request to get it checked by an independent mechanic. If any major problems are there they can tell it within a few minutes and you will be saved a lot of frustration in the future.
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