Buying your first car is exciting, but if you’re not careful, you’ll end up with a car that is too expensive and unreliable. Many car salespersons are out to earn money, and this means they’re not always thinking about your interests. This is why you should be a savvy car buyer and not feel pressured into buying a car that is not suited to your needs. Here are common mistakes to avoid when buying your first car.
Lack of Proper Research
When buying your first car, it’s crucial to do thorough research before making a purchase. Research the car’s safety features and read reviews from websites such as Consumer Reports to learn more about the car’s ratings for reliability. Other good sources for car research are Kelley Blue Book, the National Automotive Dealers Association, and Edmunds.com. Research the car’s resale value because you want a car that will maintain its value over time.
During the test drive, find out if it is easy to get in and out of the car. Test the car seats by adjusting them to ensure a good fit for you. If this is a struggle, this may be a red flag. Adjust the mirrors and locate the controls in the car. The controls should be easy to navigate. As you drive the car, notice how the steering feels. The steering shouldn’t be too heavy, but also not too light. The car’s brakes are also crucial. Do the brakes let you stop quickly when you need to? Can you maneuver the car during tight parking situations or curves?
If you’re buying a used car, request a vehicle history report from Carfax. This report helps you identify issues with the car that you don’t always notice right away or during the test drive. Some car salespersons offer the Carfax report for free, while others charge you for it.
Only Focusing on the Monthly Payments
Many car buyers focus on the monthly payments when they should consider the price of the whole car. The salesperson may lower your monthly payment by stretching the loan term out longer, but this may result in you paying more in interest on the loan every month. Some salespersons also include hidden add-ons to the monthly payment that you don’t need, as well as some bogus fees.
Not Going to Multiple Dealerships
You won’t get the best deal on your new car if you stick to one dealership. You should visit multiple dealerships to get an idea of which cars are available and which deals are the best for your budget. Or maybe you love Jeeps but found out that Hondas are just as reliable as a Jeep. Be open to a different brand or model than what you’re used to.
Failing to Stick to Your Budget
It’s easy to fall for that beautiful and shiny car without thinking about your budget. Your car will come with many expenses beyond the monthly car payments, and these include maintenance, repairs, insurance, and gas. Consider your other expenses and choose an affordable yet reliable and safe car that fits your budget.
Not Financing the Car Before Going to the Dealership
Another common mistake is not getting financing for the car before visiting the dealership. Car salespersons earn commissions on the loans they handle, whether the loan was from a local bank or the dealership. This means they don’t have an incentive to give you the most affordable price. Before you look for a car, obtain quotes from banks and credit unions. Once you have the pre-approval, you can negotiate with the dealership.
Ignoring End-of-the-Year Car Sales
Near the end of the year, car dealerships offer their best deals as they clear out their old inventory to make room for new car models. This is a good time to shop around for good deals on a car you’ve been wanting to buy. At the beginning of the year, start saving for the car so that when the end of the year comes, you’ll have the cash to get a bargain.
Sacrificing Safety for Style
Some car buyers focus on how good the car looks but ignore safety features and reliability. Research shows that cool sports cars can cause accidents at higher rates than non-sports cars. Research a car’s safety ratings and read reviews before you buy the car. Likewise, don’t just buy a car because of the cheap price. Some cheap cars aren’t the safest or most reliable.
Failing to Negotiate the Price
Don’t accept the car’s price right away. Negotiating helps you get the best deal. Start by determining how much you want to pay. Don’t let the salesperson talk you into buying added features you don’t need. If a salesperson is too pushy or rude even after you stated the price you’re willing to pay, visit another dealership.
Not Considering a Used Car
Another mistake is not considering a used car. New cars depreciate as soon as you leave the dealership, and many new cars come with high price tags. Used cars can be more affordable and reliable than new cars. As with the newer car models, research the used cars before making a purchase.
Not Reading the Contract Carefully
Before you sign the contract for a new car, read the fine print thoroughly. The contract should include the following:
- Price of the car
- The amount of credit that the dealership credited you for the trade-in
- Accurate listing of the vehicle identification number, model, and make of the trade-in, if applicable
- Your down payment amount
- An itemized list of fees and taxes that are included in the car’s price. These include the registration fee, sales tax, title fee, and documentation fee.
Make sure that the prices in your contract match what you and the salesperson agreed upon. Look for any unnecessary services in the contract and request that they be removed from the contract. These include extended warranties, tire and wheel protection, fabric protection, and paint sealants.
Buying a car can be exciting, but it’s easy to make mistakes that cost you money and stress. To avoid problems, don’t rush into a decision. Always do your homework on the car you want and how you’ll pay for it. Also, check the car thoroughly for any issues before you buy. Taking your time, doing your research, and being ready to walk away if something feels wrong are your best moves. This way, you’ll drive off with a car you’re happy with.