Seven Mistakes Most Commonly Made When Buying and Financing a Car

Just as many things need to be done when buying a car, there are also things that need to be avoided.  The process of buying a car should be fun and exciting with the buyer ending up with an amazing vehicle, one of which to be proud.  However, buying a vehicle is also a financial investment so for people to ensure they are getting a clean, stylish, and safe car but at the right price, some very specific steps need to be followed.

  1. Typically, people that go out to buy a car have a good idea of what they want and it seems that for many individuals, they lock into one particular make and model without taking the time to realize that similar cars are available that might be safer, better looking, and more affordable.  Therefore, the first mistake made in car buying is not keeping options open or being realistic.
  2. Another mistake that some people make when buying a car is not taking adequate time to conduct research.  For instance, if a person wants to buy a used vehicle, he or she should first do a search on the car’s safety record, perhaps finding that the vehicle had been wrecked but the owner not disclosing the information.  On a new car, the person might find that a similar model might have a much better factory warranty.
  3. Next, while most people want the car that has everything, all the latest bells and whistles, these come at a price.  Prior to even starting the car shopping process, people first need to determine the budget and from there, they can look at cars that fit.  Two important things that people need to remember is that cars depreciate as soon as they are driven off the lot and when purchasing a car, people should choose one that would produce a payment no more than 15% of his or her net income.
  4. Financing mistakes are also common for people buying a car.  The problem is that many dealerships will offer buyers incredible incentives.  When the buyer sees an option for 0% financing, it appears as a great deal but if the individual were to look at the long-term results, they might find that another type of financing would be better.  Just as with purchasing a home, a great way for a person to have incredible buying power would be to get preapproved for the loan before going to a car dealership.  Finding the right lender, one with the best terms and rates, would save the buyer tremendous money, so taking time to research the various lending options is critical.
  5. Mistake number five is that people fail to take a test drive.  Whether purchasing a new or used car, it is imperative to get the vehicle out on the road to feel how it drives.  Taking it one-step further, when buying a used car, people need to make an appointment with a respected mechanic and have the vehicle put up on the rack and checked.
  6. Although new cars have the sticker price on the window, most people think that because the price is in writing, it cannot be negotiated.  The truth is that any price can be discussed and in fact, car dealers expect it and they do have room to lower the price.
  7. The last mistake that is commonly seen with car buying is for the buyer to add on numerous extras that he or she would never use.  Two of the newest features that a buyer could choose are to have the VIN etched onto the window, which is meant to deter theft, and to have stained proofed upholstery.  While these are nice, they are also luxurious expenditures that would jack the price of the vehicle up.
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