Buying a new car is an exciting experience, but it can also be stressful. From calculating your budget to finding the right car and finishing all the paperwork, there's a lot to do. To make sure you get the best deal and save money, here are 10 mistakes to avoid when buying a new car. Don't let the seller take you to a vehicle you don't want.
Before you set foot in a dealership, make sure you know what type of car you need and how you'll use it. Assess your family's needs, the demands of your trip to work, and the vehicle's core purpose before narrowing down your selection. Use a widely accepted source, such as Kelley Blue Book, to find out the fair market value and average sales price of the car you're considering. Don't Discuss Your Exchange Too Soon.
Don't give your car keys or driver's license to the dealer. Don't allow the dealer to perform a credit check. There is a direct correlation between your credit score and the loan you'll be able to get. Its FICO credit rating, which ranges from 300 to 850, is a rough representation of the risk it poses to lenders.
Don't assume that the new cars you're buying are the same at two dealerships, even if both are local. Dealers that share a brand name often have different inventories and different prices or offers. Don't fall in love at first sight. When you test a car, it may seem like it's the perfect fit, but you don't have a frame of reference if you don't compare it to similar models.
Try different makes and models of vehicles to find the type of car you really want. Don't reveal your cards until you have to. If you tell the dealer what you expect to pay each month, you give them your leverage. Most people go into the buying process knowing approximately what they can afford each month.
But obsessing over monthly payments can cause you to ignore important considerations or cost you hundreds or even thousands of dollars. Don't sacrifice quality for price. For most people, price is an important determining factor when buying a car, but don't let that be the only factor. Sacrificing quality for price will likely cost you more money in the long run.
Compare dealerships that offer concierge test drive service for a sales representative to give you the test drive. Don't know about additional charges after signing. It's your job to keep “hidden expenses” in mind beforehand. The value of your car decreases the moment you take it out of the parking lot.
But that doesn't mean it's when it's worth more to the owner. Don't buy the first one you see. Running is one of the biggest car buying mistakes. As with cowboys, there are many different cars to choose from, so don't buy the first one you see.
Take the time to determine what type of vehicle is best for you, and then learn everything you can about cars in that category.Don't forget there may be better deals on less modern vehicles. Then go deeper into the models and versions. Read about gasoline reliability and mileage, learn about equipment and depreciation, and look for reports on new models coming soon.Don't buy without understanding all costs involved in owning a car. Buying a car is not like buying a pair of jeans - You can't return it if you don't like it.
Unless there is a failure to do so, the dealer has no obligation to return that new truck, SUV or sedan.Don't forget that as the year ends, dealers are looking to dispose of their remaining inventory in anticipation of receiving New Year's models, making early winter a good time to shop for offers.Finally, don't get caught up in all the excitement when buying a car - You leave the parking lot with a big smile, but then, a few days later, you realize that you overpaid for your new car because you made one of several typical mistakes when buying a car.