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| Car buying Tips |
Buying a car may be one of the biggest financial investments you will ever make, and the shopping process can take several months.
If you really want to get the best price on your vehicle purchase and drive away with a reliable set of wheels, take some time to separate your emotions from the buying decision and set a realistic budget.
Determining exactly what you want and setting your own price for your vehicle can help you narrow down the search and avoid some common car-buying mistakes.
Here are five new car-buying mistakes to steer away from:
Here are five new car-buying mistakes to steer away from:
1. Shopping at the wrong time of year. Dealerships often receive new inventory at the beginning of the year and start at ground zero with their sales goals at this time. This means the car dealer may be less likely to negotiate a better price or provide you with any type of purchasing incentives. If you are in the market for a new car, AutoTrader recommends shopping in the late summer or early fall. You may be able to get a great price on last year’s model as next year’s models start to roll in. It’s also a good idea to time your visit closer to the end of the day when the sales teams are trying to close deals before they head out for the night.
2. Only visiting one dealership. While many dealerships might lure you in with grand opening specials and test-drive incentives, it pays to shop around. Take the time to visit at least three dealerships before committing to a purchase. Shopping around will give you a chance to ask lots of questions, take pictures and compare several vehicles. Car and Driver recommends getting quotes from multiple dealers and letting the dealer know that you are shopping around, since he or she might be more likely to extend a better deal and negotiate.
3. Focusing only on the monthly payment. Auto dealers work hard to make your dream car seem very affordable and may break down the financials to a monthly payment. However, being able toafford a monthly payment doesn't necessarily mean you should sign papers for those wheels. Car salespeople may readily suggest a five or six-year loan term to make that monthly payment fit within your budget, but the value of your vehicle investment may drop dramatically over that time. And you could end up paying a significant amount in interest. Think about whether you may be in a position to trade in the vehicle in a few years and what is the depreciation value of your vehicle of choice before you agree to a loan.
