One of the best experiences in life is driving a brand-new car. On the other hand, visiting a dealership and purchasing one, ranks right up there with visiting the dentist and public speaking on top of a majority of individual’s lists for producing anxiety. However, if you are knowledgeable and prepared, it really isn’t all that scary. You can then stroll into the dealership confident, informed and in charge of the entire process. We’ll help you develop this confidence by helping you steer clear of the car buying mistakes that many people make when looking to purchase a new car.
Not lining up financing before going shopping
If you don’t line up financing before walking into a dealership, you could end up paying a premium to get dealer financing. You will be getting a finance rate that is viewed as wholesale value where an increased interest rate is added on. As the consumer, you have the ability to get financing on your own. Using the dealer’s finance rate isn’t required. Get pre-approved for an auto loan from your credit union or bank first. It’s great if the dealer is able to match the interest rate. However, if they can’t, you still have a loan option with a low interest rate.
Shopping based on desired monthly payment
Whether you are leasing or financing a car, it is important for you to take into account the overall cost of owning or leasing instead of just focusing on what your monthly payment will be. Consumers will often opt for long finance periods due to the fact that it lowers their monthly payments. However, when you add up how much the longer time is costing you, the interest will cost more. Another car buying mistakes are looking at lower monthly lease payments and believing they can be compared with monthly car payments. Once the financing period is over, you still will have a car to trade in or lease. However, when a lease ends, you must return the vehicle. You also need to consider the insurance and maintenance cost because they can vary depending on the type of car that you select.
Not taking a test drive
An auto retail survey done by IBM Corp. showed that 20 percent of lessees and buyers of new cars in the U.S, don’t take a test drive. First-time buyers should test drive in several cars. This is the best way of determining whether or not a certain car is the best one for you. Don’t think you can just read car reviews and make the assumption that you agree with the reviewer. Take the time to go on test drives so that you can judge for yourself. You may also want to visit a car show so that you can sit inside vehicles to get a feel for them.
Negotiating in person
The No. 1 priority of a car salesman is getting you into the dealership. They have the advantage there. If you have invested your time to go in, then you are a lot less likely to turn down a deal when you aren’t offered the price you wanted? Do comparison shopping instead and negotiate by email or phone to avoid car buying mistakes. That way you will be in the driver’s seat throughout the transaction.
Not having a used car inspected
Skipping this step can really end up costing you a lot of money. It may sound good and look good, but there could be an engine problem or transmission problem that is being covered up. Some people are able to hack into a digital odometer and then change it. That’s something that a technician can spot.
Do whatever you can to avoid these car buying mistakes. If you are able to do that, you can get a much better deal and positive ownership experience.