A car is one of the biggest purchases most people make, generally second only to buying a house. Given the amount of money changing hands, it is good to know the mistakes most often made so you can avoid them.
Do Your Research
One of the most common mistakes made by people while buying a car is not doing research before going to the dealership. The more information you have on hand while engaging a salesperson, the more control you have throughout the negotiation process. There are a few pieces of information you should know before settling on a deal for a car. First, look up your credit score to get an idea of the financing terms you should expect. Next, decide on a monthly car payment budget and down payment amount. Be sure to leave “wiggle room” for an unexpected financial issue. If you are planning on trading in your current car, look up its current fair market value so you can get the best trade-in value possible. This information can be an important tool while bargaining down the sticker price of the car you plan to purchase.
Read and Understand the Contracts
There are two primary documents you should make sure to read and fully understand before signing, the purchase contract and financing agreement. A common mistake made by car buyers, even those who have experience purchasing a car, is not looking over every item in the purchase and financing paperwork. Most car dealerships won’t try to purposely sneak by an upgrade charge, loan term or other contract detail on purpose, but accidental oversights in what you are told are possible. Take notes during the negotiations and make sure that what you are told and what you are signing match.
Stay Calm
The purchase of a new car is exciting for the buyer, but for the dealership, it is business as usual. Salespeople are trained to capitalize on the excited and emotional nature of buying a car as a way of selling upgrades and additional features. There is nothing wrong with this sales technique, but it can help you stay on your intended budget to remain calm and not show the dealership’s salesperson how excited you are to drive away in the car of your dreams.
The only way to avoid the three most common mistakes listed above is to know they happen and prepare before you shop. Take notes, stick to your budget and remain calm while shopping for your next car.
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