Purchasing a car is often among the largest financial decisions you’ll face. Depending on your circumstances, it can either be a stressful obligation or an exciting milestone.
If you’ve been forced to shop for a vehicle due to unexpected issues or accidents, the process might feel overwhelming. On the other hand, if you’ve been saving and planning for this moment, you’re likely looking forward to selecting your new ride.
Regardless of your situation, making informed choices is essential to avoid regret or unnecessary expenses. From selecting the right model to securing favorable terms, there are numerous opportunities to make costly mistakes. Here are ten common missteps to avoid when buying a car:
1. Neglecting Research
Deciding between options like new versus used, sedan versus SUV, or domestic versus foreign can be daunting. While features like color or style may grab your attention, don’t overlook critical aspects such as safety ratings, recall histories, and consumer reviews.
Thorough preparation before meeting a salesperson improves your chances of choosing the right car rather than settling for what’s pushed on you.
Also Read: How to Negotiate the Best Price When Buying a New Car
2. Ignoring Your Trade-In’s Value
Failing to research your current vehicle’s worth puts you at a disadvantage when trading it in. Dealers are well aware of its value, and accepting their initial offer likely means losing money.
Factors like age, mileage, and condition affect trade-in value. Websites such as KBB.com can help you determine an accurate estimate, giving you leverage to negotiate a fair deal.
3. Skipping the Vehicle History Report
For pre-owned purchases, obtaining a report from companies like CARFAX or AutoCheck is critical. A car may appear flawless but could have hidden issues from past accidents or mechanical problems.
Visual inspections alone may miss these details. A vehicle history report reveals information about odometer accuracy, salvage titles, and more, saving you from potential costly surprises.
4. Buying at the First Dealership
Falling in love with the first car you see might lead to overspending. Visit at least three dealerships or browse online to explore different options.
Comparing prices and features ensures you make a well-informed decision. Letting salespeople know you’re considering alternatives can also prompt better offers or incentives.
5. Relying Solely on Dealership Financing
Although convenient, financing through the dealership may cost more in the long run. Exploring other options, such as banks or credit unions, often results in better rates.
Credit unions, in particular, often provide lower loan rates as they prioritize member benefits over profit.
6. Focusing Only on Monthly Payments
Many buyers prioritize achieving a manageable monthly payment without considering the total cost. Financing for longer terms may reduce the monthly amount but gradually increase interest expenses. Focus on negotiating the car’s total price first, then discuss terms to align payments with your budget.
7. Yielding to High-Pressure Sales Tactics
Dealers often use urgency-driven sales pitches to push buyers into quick decisions. Remember, car dealerships need to sell vehicles, so deals won’t vanish overnight.
If the terms aren’t favorable, don’t hesitate to walk away. Leaving your contact information gives them a chance to offer better terms later.
8. Skipping a Thorough Test Drive
A quick drive around the block may not reveal potential issues. Take your time to evaluate the car’s comfort, handling, and features on different road conditions. Test the brakes, controls, and entire functionality to ensure the vehicle suits your needs for the long haul.
9. Skipping an Independent Inspection
Even if a car comes with a dealership’s inspection, having an independent mechanic check it is invaluable. A professional evaluation identifies current issues that might not be covered in a vehicle history report. While an inspection may cost $100-200, it’s a small price to pay for peace of mind.
Also Read: Is Leasing a Car Worth it?
10. Choosing Based on Emotion
It’s easy to be drawn to a car’s appearance or status symbol, but practicality matters more. A flashy car might not fit your lifestyle or future plans, such as family needs or work travel.
Consider both your immediate preferences and long-term requirements to ensure your purchase remains a good fit.
If you’re considering a car purchase or planning for the future, assistance with financing is readily available. Contact Spero today to discuss auto loan options tailored to your needs.