It’s no secret that buying a car can be a daunting experience. There are so many factors to consider, and it’s easy to make a mistake that could cost you time and money.
In this article, we’ll discuss 5 of the worst car-buying mistakes that people often make.
Knowing these mistakes, you can avoid them and have a smoother, more successful experience when buying your next car.
Read more: Top 5 Things to Know Before Applying for a Car Loan
1. Not Shopping Around
One of the biggest mistakes you can make when buying a car is not shopping around. It’s important to compare prices, features, and financing options before deciding. Always visit multiple dealerships and research different makes and models online before settling on a car. Dealers’ prices will vary, and some may offer deals that others don’t. Some of these include “no money down,” ” no interest for two years and “0 % APR” It pays to shop around!
2. Not Knowing the Value of Your Trade-In
If you’re planning on trading in your old car, it’s important to know its value before going to the dealership. Many people don’t realize how much their trade-in is worth and end up getting lowballed by the dealer. Knowing the value of your trade-in ahead of time will help you negotiate a better price for your new car. It is also good because it allows you to sell your vehicle outright if you feel you are not getting a good enough trade-in value.
3. Only Focusing on the Monthly Payment
Another common mistake people make when buying a car is only focusing on the monthly payment. While it’s important to keep your monthly payments affordable, you also need to consider the total cost of the car. These factors include gas, insurance, and maintenance. Make sure to look at the big picture and consider things like the interest rate, the length of the loan, and the car’s total price before making a decision.
4. Shopping at the Beginning of the Year
One mistake that many people make is shopping for a car at the beginning of the year. Unfortunately, this is often when dealerships have received the new vehicles for the year and have new sales goals to meet. In short, this means dealers aren’t in a rush to get the cars out the door. As a result, you may be able to get a better deal by waiting until later in the year when dealerships are more motivated to make a sale.
5. Applying for Financing at the Dealership
Applying for financing at the dealership is one of the worst mistakes you can make. This is because dealerships often mark up the interest rate on loans. Instead, get pre-approved for financing from a bank or credit union before you go to the dealership. This way, you’ll know what interest rate you qualify for and can avoid being overcharged by the dealer.
Being pre-approved for a car loan also gives you leverage when negotiating the price of the car. The dealer will know that you’re not relying on them for financing, which could help you get a lower price.
Don’t Make Mistakes; Shop Smarter
Buying a car can be a stressful experience, but it doesn’t have to be. By avoiding these five mistakes, you can make the process smoother and more successful. Do your research ahead of time, know the value of your trade-in, and don’t let the monthly payment be your only focus.
And, if you’re shopping for a new car, consider waiting until later in the year when dealerships are more motivated to make a sale. Finally, don’t apply for financing at the dealership. Getting pre-approved for a loan from a bank or credit union will give you leverage when negotiating the price of the car and help you avoid paying too much in interest.
