Car buying might be an exciting moment for many, but we should also keep in mind that it is also a major investment and we cannot afford to go wrong. Careful research, planning your finances and choosing a car that fits your needs are essential to avoid paying thousands of extra dollars. Car dealers would often try to lure you into deals that might not be very beneficial for you and can put additional load on your pocket. So if you’re buying a car for the first time, here are some car buying mistakes that you should avoid at all costs.
1. Shopping From a Single Dealership
Buying a car from the very first dealership you visit might save a little time, but will keep you from getting the best deal. When buying an expensive asset like a car, it is important that you do a little shopping around to compare the different price offers from various dealers. This will help you get a clear picture about the required budget and would also help you find better with the car dealers. Even though it is natural to get impatient about your new car, you must try to get the best price for the car you have chosen to avoid paying any extra money.
2. Avoiding Online Research
Purchasing a vehicle isn’t just about choosing the best car, but also about knowing your personal finances and planning your budget. If you are planning to get your car financed, it is essential that you check your credit score and income sources to clearly know whether you’ll buy a new vehicle or a used one. One can find a lot of information regarding the car and finances on the internet and be fully prepared before visiting any dealerships. Here is how credit score affects your interest when you buy a car.
3. Paying No or Low Amount of Down payment
If you’re planning to purchase a new car on finance, make sure you increase your initial payment amount as much as possible to avoid paying a hefty monthly payment. Cars lose their value as soon as you drive them out of the dealer’s outlet and getting a new car on finance will end with you paying more than the car’s worth. You can also go for an older model than going for the latest one to save a substantial amount of money. Try to focus less on the monthly payments and think more about the overall cost of vehicle to ensure that your savings aren’t exhausted after you are done with the payments.
4. Getting Accessories from the Dealer
There might be some people, who would want to go for the branded accessories such as CD players, alloy wheels and security alarms etc. from the car dealership. While this might be an attempt at maintaining the car’s aesthetics, these accessories are often overpriced at the dealerships and will certainly cost a lot less elsewhere. Most accessories sold by the dealerships do not add any value to the car and can harm your car’s resale value in case of any model upgrades. It is often best to check on various accessory stores for lower priced alternatives.
5. Choosing the Wrong Car
People are so much focused in getting the best deal that they totally forget whether the car suits their requirements or not. You must always remember that the car you buy will suit all your needs rather than being plain good looking. Checking on the car’s fuel efficiency, safety features, air conditioning, seating and cargo capacity are all essential to buy your dream car. At the same time, it is important to test drive the vehicle before you make your final decision. Driving the vehicle helps you notice any flaws in the assembly and also helps you decide, whether you like the vehicle or not.
6. Getting Financed By the Dealership
If you’re planning to buy a car on finance, you shouldn’t wait till you visit the dealership to know your options. The loans and finance options offered by the dealerships can have several hidden costs and higher interest rates that can affect you on a longer run. For best results, research your options beforehand on the internet and try to get pre-approved car loans before you walk into a car dealership. You can also contact your bank or local credit union for vehicle loans with much lower interest rates and paperwork.
A car is not only a reliable mode of transport but is also an asset that you must carefully invest in. Following these smart and effective tips will certainly help you in getting the best deals for your dream vehicle.