Once the decision to buy a new car has been made there are a number of other important decisions to be made. Making good decisions will help ensure that you don't make some of the most common car buying mistakes. With that decision came other decisions, like what car to buy? How much can I afford to spend? How much of a monthly payment can I afford, and should I look for a new car or a used one?
While it's nice to dream about finally getting the car that you've always wanted, you also have to be careful not to get to swept up by your desires and ignore the realities that come with making such an important decision.
There are some significant factors that have to be addressed once you've decided it's time to buy. First of all remember this; in most cases, a vehicle will be one of the most expensive purchases we will ever make. Keeping this simple fact in mind will help make sure that you don't make a mistake in your buying process.
If you're like the rest of us you've made a mistake or two when buying a car. Let's look at the common mistakes that people make when choosing, buying and financing a car.
Ignoring other alternatives: We all have our own preferences. Usually, even before we set out for the dealerships, we have painted a picture in our minds of what our dream car should be. We might even have a particular vehicle in mind already. What's not good about this is that we may be closing the door to other, more appropriate or practical options, like wanting a sports car when a family van is the real need. You must to learn to consider other available choices.
No research or not enough: In our excitement, we sometimes fail to check the advantages and disadvantages of the different vehicles we have chosen to consider. Before heading out to the dealership, you should determine what features are important, what about safety, economy, insurance, etc.?
Basing your decision on monthly payment: Dealers would like for all consumers to make their buying decisions using monthly payment as the primary buying criteria. This is almost assuredly the best way to ensure that you pay way too much for your new car. Always negotiate as a cash buyer. Work out your budget in advance and stick to it. Don't let the dealer be your financial advisor, he doesn't have your best interests in mind. If you can't afford the payment or have to make promises of deferred down payments, don't buy. Remember also that cars depreciate quickly, new cars more so than used, so a three-year loan might be a wiser financial decision than a five-year loan, even though the monthly payments are sure to be higher.
Failing to properly test drive: Always take a thorough test drive before buying any car. Make sure to test the car under the same conditions you experience in your normal, everyday, life. If the salesperson objects, insist or find a different dealer. Take it out on the freeway, check the cruise control, take it up a hill and be sure to test all the features and equipment. I've seen people buy a car without ever testing the power windows, Air conditioning or worse yet, the Moon Roof. If the Moon Roof doesn't work, expect to spend at least $1000 to have it repaired. A thorough test drive allows you to get a feel for the car, and determine if it really is the right car for you. You might also have questions regarding the history and maintenance of the car, some of which may arise during the test drive.
Buying the extras: There are some things you simply can't avoid, like sales tax and state licensing fees. Dealers may try to get you to purchase warranties, credit insurance and other products.
If you buy a new car, dealers may try to talk you into purchasing treatments and accessories, like undercoating, rust proofing and stain-proofing the upholstery. They're not necessary on most cars. In fact, some new car warranties can be inadvertently voided by the application of some of these products. In most instances, you can even do these things yourself, and at much cheaper costs. Learn to distinguish what is needed and what is not when purchasing your car.
Extending the warranty on a new car is only worth considering if you plan on keeping the vehicle beyond the warranty term provided by the factory. If you finance a warranty, you'll be paying interest on it as well. It might be better to wait until the factory warranty has expired, then purchase a used car warranty.
Used car warranties are a good idea given the expense of repairs on modern cars. You should know that these warranties are negotiable, and in many cases provide higher profits for the dealer than the cars themselves.
If you can afford the car of your dreams, then go for it. Getting the best price, financing at the best terms and rates you qualify for, budgeting and setting a limit on how much you can afford to spend on a car are important though. This is especially true in a down economy such as the one we find ourselves in now. There is help with all of these questions and concerns.
You can find a complete and comprehensive guide to every aspect of the car buying and financing process in my new book, "The Insider's Secrets". Our website, http://www.theinsiderssecrets.net/ is a great source for information, with our helpful articles and links pages. You'll find ordering information on all of our time saving, stress relieving and money saving products and services as well. Take advantage of the information, tools, tactics and techniques we provide will save you thousands of your hard earned dollars, precious time and undue stress, each and every time you buy a car.
Keeping these ideas in mind will pay off immeasurably by helping you avoid some of the common car buying mistakes. Good luck in all of your future car purchases.
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