One of the worst things you can do is buy a car on impulse. It’s easy to do when you’re buying your first car, but even experienced buyers fall pray to the impulse buy. To get the most for your money and end up with a car really fits your needs, you have to take the time to research your purchase and think about your situation.
When you factor in the high-pressure salesmen at most car dealerships, it can be completely overwhelming to pick out a car, negotiate the price, get approved for financing, and complete the sale. One small mistake can cost you hundreds of dollars, or even thousands of dollars over the lifetime of your vehicle.
Pay attention to these 7 common car buying mistakes so that you’ll be able to avoid them when you’re buying your next vehicle.
Don’t sacrifice reliability for curb appeal
It’s easy to be wooed by an awesome car or awesome features. It’s important to research a car before you buy it on looks alone. Reliability is always more important in the long run.
Don’t confuse want with need
You want that awesome two-seat convertible that you saw on the lot down the street, and you’ll do anything to have it. But your wife is expecting your second child, your 7 year old plays hockey and has a huge equipment bag, and you have 2 big dogs. The convertible probably won’t work for you or your family. Make a list of activities that you’d need your new car for, and make sure that your new purchase will work in all of those situations.
Don’t test drive the wrong trim
In most cases, the different trim levels of a car don’t just reference external body styles – there are performance differences as well. Many dealers will let you test drive the highest trim level, so you’re experiencing the best performance and upgrades – then they’ll sell you a lower level trim that’s more affordable. Buyers who fall for this tactic will almost always end up disappointed in their purchase.
Don’t Buy Options You Don’t Need
When you’re buying a new car, including the option for an in-dash navigation system will usually cost several thousand dollars extra. You can buy a portable GPS system for $100-$150 that works just as well. Research the prices on possible options before you shop – if there’s an option or feature that you really want or need, check around and see what the after-market price is. You’ll almost always save a significant amount of money.
Don’t forget to check what other people pay
You’re already researching your car purchase online – make sure you take the time to research purchase prices as well. There are various resources online to find out what other buyers paid for a vehicle, but it’s easy to hop on AutoTrader or eBay Motors and see the list price for vehicles. Browse around and see what vehicles are listed for so that you can be sure to buy your car at a competitive price.
Don’t underestimate the value of your trade-in
One of the best ways to save money on a new purchase is to trade in your current vehicle. One of the worst ways to save money on a new purchase is to just take the dealer’s word for how much your car is worth. Another common mistake is to tell the dealer that you plan on trading in your car too early in the process. Check Kelly Blue Book or the NADA guide to determine your car’s trade in value. Make sure you’ve already negotiated the price on the car you’re buying before you let the dealer know that you’re trading in your old car. Remember – if you don’t like what the dealer is offering, you can always take your business to another dealership.
Don’t negotiate based solely on monthly payments
Most buyers will only think about their monthly payment, since thinking about a large purchase price can be overwhelming. It seems logical that a $250 monthly payment is more affordable than a $350 monthly payment. What most buyers don’t realize is that the lower payment means your loan term will be a longer period of time, which means you’ll be paying much more interest over the life of the loan.
If you pay attention to these common car buying mistakes when you’re shopping for your next car or truck, you’ll be able to avoid expensive mis-steps. If you’re already in the market for a vehicle, give us a call – we’ve got the best selection of quality used cars in Dallas. If there’s something specific you’re looking for, we can find it for you – we’re here to make sure you get exactly what you’re looking for.