Car Buying Mistakes
Mistake 1 Impulse Car Buying
The worst thing when buying a car are emotions. Car salesmen know how to make money on your emotions and weaknesses. They also know that if you leave the dealership without buying car, most likely you won’t be back, so they’ll do everything to get you into a deal. Avoid statements like “I’m in love with this car” or “I should buy this car”. Keep calmness and do not show your emotions.
Mistake 2 No Research
Research, research and again research… Only it will give you the information you need for arriving at a decision. Conduct a research about cars that includes: a. safety b. recalls c. resale value d. maintenance and repairs e. range of car prices for the make and model you want
Mistake 3 Overestimating your Needs
Buy a car that suits your current needs. Many car shoppers make the mistake of buying a car that does not reflect their actual needs, instead they opt for a vehicle that suites their future plans or perceived future needs. For example, a buyer who plans to own a boat may buy an SUV without owning any boat yet.
Mistake 4 Forgetting about the True Cost of a Hybrid
Hybrid vehicles are priced much higher than regular vehicles. Just subtract the cost of the regular vehicle from that of a hybrid one and you'll see the premium you pay for the hybrid. Now calculate whether or not the fuel savings will cover the price of the hybrid pay over the number of months you own the vehicle. It won’t!
Mistake 5 Purchasing a Car without Having Shopped for the Insurance
People are often tempted to buy a new car without thinking much! The shiny new car captivates their brain and leaves no space for common sense. Hang on please! Remember about the drastic increase of the insurance costs when going from an older car to a new one, e.g. going from a Toyota Altima to a Corvette will increase the insurance costs significantly and may even make the car purchase unaffordable.
Mistake 6 Trade-in Negotiations when Buying a New
It is easier for the dealer to make you believe that you're getting a good price for your trade-in if you combine trading-in with buying a new car! So you'd better make your car buying deal apart from your trading-in deal to make both deals more profitable for you.
Mistake 7 Agreeing upon Dealer Financing
The Finance and Insurance (F&I) office is the most dangerous place in a dealership. Be wary of every offer you will get here: financing, warranty, insurances like life insurance that pays off your loan balance. Decline everything offered from an F&I office except a low interest rate on a loan of no more than 36 months.
Mistake 8 Buying a Car without Time Considerations
At the end of any month when dealerships want to maximize the sale volumes and their bonuses you'll get your best deals. If you can wait, then wait until the last couple of days in December. End-of-year purchases are almost always great deals.
Mistake 9 Leasing a Ca
Car dealerships make much more profit on car leases than on car sales. The lease agreement is written totally in favor of the lease company. As a car lessee you are responsible for the car maintenance and insurance. In addition, your lease limits you to a certain maximum number of miles driven. If you exceed that limit, you have to deal with the mileage penalties.
Mistake 10 Opting for a New Ca
The value of your car drops up to 20% the moment you drive your new ride off the dealer lot. The car lots are jammed with excellent used cars. So if you do not need a new car for some very special reason, you can save a lot of money by buying a used car. So compare the total cost of a new car versus the used car, including finance costs, maintenance and insurance to make your final choice.
Buying cars is probably the second largest purchase in anyone’s life. If you are a smart and well-versed buyer then you may sit back lightheartedly since you definitely won’t be an auto fraud victim, instead will save money and enjoy your car!
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