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Top New Car Buying Mistakes To Avoid
Published on 9/23/2020
Getting a new car is a great feeling. You know this piece of machinery is pristine, very few hands have touched it, and it's yours. Yes. . . It. Is. Yours. Let that sink in. Feel good? Unfortunately, there are a lot of mistakes buyers can make when purchasing a new vehicle. In light of this, you're going to see a few slips people make when at a dealership. Hopefully you can avoid doing the same. Take a look and see how your car-buying experience can be improved.
Credit
In most cases, your credit union provides better loan options than so-called dealer financing. While the dealer wants to make a cut off of your financing, your credit union is only interested in getting you the best loan possible. Make sure you walk into an auto dealer with pre-approved credit union financing.
Payments Over Price
Perhaps you've heard this; "How much were you thinking of spending per month?" This is a common question made by salespeople. The idea is to get you to pay for more over a longer period of time, hiking up the interest. Stick with your credit union financing and this won't be an issue.
Negotiating from Sticker Price
It isn't uncommon to think you've got an amazing deal on a vehicle if you negotiate lower than the sticker price. Yes, it is lower, but it surely isn't the best deal you can get. Instead, look at the invoice for the car. Once you know what the dealership paid for the vehicle, you can negotiate up and get a significantly better price.
Skipping the Test Drive
The best way to know whether you like a car is to get behind the wheel and take it for a spin. Don't assume just because it has good ratings, it will automatically be enjoyable to drive. You'll be stuck with this machine for the foreseeable future. Take it for a thorough test drive.
Add-Ons
These are optional "upgrades" you can purchase for your vehicle. By and large, they do nothing to add to the real value of the car and generally aren't worth the money you spend. If there's a particular add-on you really want, do some extra shopping and see who can offer the same service for cheaper.
Credit
In most cases, your credit union provides better loan options than so-called dealer financing. While the dealer wants to make a cut off of your financing, your credit union is only interested in getting you the best loan possible. Make sure you walk into an auto dealer with pre-approved credit union financing.
Payments Over Price
Perhaps you've heard this; "How much were you thinking of spending per month?" This is a common question made by salespeople. The idea is to get you to pay for more over a longer period of time, hiking up the interest. Stick with your credit union financing and this won't be an issue.
Negotiating from Sticker Price
It isn't uncommon to think you've got an amazing deal on a vehicle if you negotiate lower than the sticker price. Yes, it is lower, but it surely isn't the best deal you can get. Instead, look at the invoice for the car. Once you know what the dealership paid for the vehicle, you can negotiate up and get a significantly better price.
Skipping the Test Drive
The best way to know whether you like a car is to get behind the wheel and take it for a spin. Don't assume just because it has good ratings, it will automatically be enjoyable to drive. You'll be stuck with this machine for the foreseeable future. Take it for a thorough test drive.
Add-Ons
These are optional "upgrades" you can purchase for your vehicle. By and large, they do nothing to add to the real value of the car and generally aren't worth the money you spend. If there's a particular add-on you really want, do some extra shopping and see who can offer the same service for cheaper.