New cars can be expensive. Buying one without doing the necessary research can be a costly mistake.
Dealerships will try to sell you extras that aren’t necessary. These include rustproofing, fabric protection, wheel locks, VIN etching, and additional warranties.
Before you go to a dealership, it’s important to get loan preapproval. This will prevent multiple hard credit inquiries from dinging your credit score.
1. You Don’t Shop Around
As the old adage goes, “love at first sight can be dangerous.” It’s important to know exactly what you want in a car before ever setting foot in a dealership. This way, you can avoid the upselling tactics that are common in automobile sales and protect yourself from buyer’s remorse.
It’s also a good idea to shop around for financing. Most dealers are notorious for charging higher interest rates than credit unions, and you can often save thousands by shopping around.
Another mistake that many car buyers make is getting preoccupied with monthly payments. It’s important to keep in mind that you need to factor in other costs like gas, insurance, and maintenance. Aim to spend no more than 20% of your take-home pay on your vehicle, and be sure to consider any other fees or charges associated with the car. This will help you stay within your budget and avoid unnecessary financial stress down the road.
2. You Don’t Do Your Research
You may know how to shop for a new car, but it’s also important to do your homework before you get to the dealership. You should research different models, trim levels, each brand’s reliability, and gas mileage. You should also consider how much the car will cost to insure.
You should also know the dealer’s MSRP price (the amount on the window sticker) so you can negotiate a fair deal. Also, find out how many miles the vehicle has on it, as this will impact its price and lifespan.
It’s also a good idea to avoid using the dealership’s financing, as this will add interest and could hurt your credit score. You should also bring your own financing if possible to get the best rates. This will make the entire process easier and less stressful. You should also get the vehicle inspected before buying it. This will help you identify any mechanical problems that may be costly to fix later on.
3. You Don’t Ask Questions
Buying a new car is one of the most expensive purchases that most people will make in their lifetime. Because of this, it is important that you do your research and ask questions throughout the process.
When you walk into a dealership, it is easy to get caught up in the excitement of shopping for a new vehicle. However, if you don’t ask the right questions, you could end up making some costly mistakes that will leave you with buyer’s remorse later on down the road.
For example, if you don’t ask about the vehicle history report, you may not be aware of any damage or accidents that could impact its value or functionality. You should also always ask about the warranty and any other extras that may be included in the purchase price.
Lastly, if you aren’t sure if the vehicle will fit in your garage, be sure to measure it before you buy. Otherwise, you may end up with a car that you can’t park in your driveway.
4. You Don’t Take Your Time
Many people rush through the car buying process, which can lead to mistakes. For example, they may buy a vehicle without thoroughly testing it. This is a huge mistake that could lead to disappointment and buyer’s remorse down the road.
Another mistake that people make is not taking enough time to research their options. This can be done in a variety of ways, from visiting websites to physically visiting dealerships. Taking the time to research vehicles will help you find one that fits your needs and budget.
It’s also important to take the time to consider whether a trade-in is the right move. Dealerships can use your trade-in to make the car you’re purchasing look more affordable. And if you have an outstanding loan on your current vehicle, it’s a good idea to wait before trading in or selling it.
With new-car inventories at their lowest point in years, it’s essential to take your time when shopping for a car. Otherwise, you may end up with a model that doesn’t suit your needs and is more expensive than necessary.
