Since buying a car is usually the second biggest purchase a person makes besides a house, it’s important to pay attention to several details when approaching a car dealership. While you’re trying to get the best deal, they’re trying to make the most money possible.
The following mistakes are worth noting when shopping for a vehicle:
- Failing to Research
- Settling on What’s Available
- Narrow Wish list
- Too Many Add-ons
- Failure to Test Drive
- Over-Emphasizing Monthly Payments
- Saying You’ll Pay Cash
- Misunderstanding Loans
If you don’t research car prices online before visiting a dealership, you will not have a reference for pricing that can be used for negotiating.
Buying a car based on what’s available at a dealership does not always lead to the best deal. Special ordering is often an overlooked option.
Car shoppers tend to stay focused on a short wish list of cars when they might benefit by researching a wider list of choices, as most cars are now safe and reliable.
Dealers may try to sell you unnecessary features that you don’t need, such as sunroofs or other electronic devices, which can lead to paying too much.
Test driving is important because you need to make sure the seats, steering, and visibility are comfortable. You also need to be aware of nuances that may require automotive repair services.
When you focus too much on what the monthly payment will be, the dealership may reduce your chances on getting the best possible price.
Telling sales representatives upfront that you’ll pay cash may hurt your chances to negotiate the price since dealerships are more likely to negotiate with loans.
If you don’t understand how financing works, then you may end up paying much more than you thought in interest, which is money that could have gone to paying for automotive repair services.