Car Buying: The Top 5 Car Buying Mistakes
Car buying can provide a number of common pitfalls, which may be why so many experts recommend doing some research before you go shopping. Whether you need used car buying help or new car buying tips, it’s important to spot these traps before you fall.
The Top 5 Car Buying Mistakes
Have They Got a Deal for You!
Probably the most important thing to understand is how the cost is actually tabulated. Some sellers blur the line between dealer invoice and dealer cost, creating confusion about just how good a deal you’re getting. For reference: the dealer cost is how much the dealer has paid for the car minus some considerable profit incentives and plus his overhead, meaning it’s not the rock bottom. Dealer invoice, on the other hand, is the actual price the dealer paid to the factory for the car.
How Much Do You Want Your Monthly Payments to Be?
In many cases the persuasive salesman is going to try to sell you a car that costs more than you want to pay but he’ll wrap it up in a deal with monthly payments that you think you can afford. Before you tell him what you’re willing to pay each month, you should find out what the car is going to cost. Then you can figure out the math yourself or you could be paying that “comfortable” monthly amount for way more months than you need to.
We’ve Got Some Extras For You
Some extras may be worth tacking on to your auto loan, like automatic transmission instead of manual, or safety features that will help lower your insurance premium. But before you just sign up for an extended car warranty or other extras that you might not need or you could get for less somewhere else, do your research!
But It Looks So Great!
Too many people rely on curb appeal more than the important factors about the car. Safety, quality, longevity and resale price are all very important. You may also want to look at customer satisfaction and typical maintenance costs for a better sense of how much time and money you’ll end up putting into that vehicle after you’ve bought it.
Who Has Time for Comparison Shopping?
One of the most common mistakes you can make is not doing your comparison shopping before you decide. It’s a well-known fact that car prices vary greatly, even on the exact same car, meaning you may find a better rate just down the road. Do your research, comparison shop and check the Web for going rates in your area to be sure you have a good idea of what you should be paying.
Car buying can be a great experience provided you know what to avoid and you prepare yourself. Stick with safety, quality and sterling reputations for client care and you’ll be ahead of the game.