So it’s finally time to trade in your old clunker. This is an exciting time to get a great car that suits all of your needs. Before you buy the first shiny model that crosses your path, here are some common car buying mistakes to avoid.
Making up your mind before you do your research
Have you seen the SUV of your dreams charging around town? Or have you been lusting after the sports car that zooms around your neighborhood? When you need a new car, it can be easy to fall for a vehicle based on looks alone. Falling head over heels for a car when you haven’t done any research can be a costly mistake. Before you sign the check, read reviews by experts in the automotive field and other consumers so you know how a car ranks in owner satisfaction and driving tests. You will also need to research safety ratings and maintenance so that you know which cars are right for your transportation needs and your wallet.
Skipping the test drive
Have you ever bought a pair of shoes without trying them on? They may look great, but give you killer blisters when you wear them. Buying a car without first taking a test drive can have the same uncomfortable consequences. Take a test drive and see how a car handles in different driving conditions. You’ll want to check out how it drives in both city and highway traffic. If you have time to take multiple test drives, you might also want to check out how well you manage the car in different weather conditions so that you can determine if you are comfortable with braking, accelerating and switching lanes when the weather is nasty. The test drive is also a good time to check out all of the car’s bells and whistles, like the sunroof, cruise control and automatic locks, so be sure to do a thorough inspection before you sign on the dotted line.
Letting a lender lure you
Do you know how lenders make money on loans? Interest, closing costs and other fees. For that reason, it is important that you shop around for the right lender when you need a loan to buy a car. You don’t have to finance your car loan through the dealership. In fact, it is a good idea to shop around for the best interest rate from a variety of lenders. When you request an auto loan with LendingTree® , you will be able to compare offers from a number of different lenders so you can pick the right loan for you. Also remember that although a lender may approve you for a certain amount, that does not mean you should spend that much. You need to be able to fit your monthly loan payment comfortably into the budget that you have created for yourself.
Buying the wrong car for your lifestyle
The car of your dreams may not be the right vehicle for your lifestyle. If you have carpool duty, that two-door sports car is probably not the right way to go. Or if you are barely making ends meet, that gas-guzzling SUV may leave your wallet on E. Think about your transportation needs and find the car that best matches them. Consider safety, maintenance and repairs, fuel efficiency, size and extras so that you get the car that best suits your lifestyle and your budget.
Accepting the first offer
Negotiating the price of the car is one of the most important steps in the car buying process. Unfortunately, it can also be one of the most nerve wracking steps, as well. When buying a new car, look at the invoice price--not the sticker price -- and use that as leverage for negotiating with the dealership. When buying a used car, research local advertisements and pre-owned deals so that you can determine a fair price for a vehicle. Regardless of whether you are buying new or used, remember that the first number that is shown to you is probably not the best the dealership can do, so hold your ground until you reach an agreement that you feel is fair.
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