7 Worst Car Buying Mistakes You Could Make

Buying a car can feel like a daunting task. In fact, according to a University of Michigan consumer survey, three out of four of his consumers think this is a bad time to buy a car.

But what if the timing is bad and you still want to buy a car? Sometimes avoiding mistakes is the best way to go when buying a car. Here are some of the worst mistakes to avoid when buying a car.

1. Negotiate monthly payment amount

One of the best things you can do when buying a car is to budget in advance. Know how much you want to spend on the car and stick to that amount.

It’s common for salespeople to ask how much they can afford to pay each month. This is a well-known tactic designed to increase your overall spending. They can massage monthly payments by offering longer loan terms to make them feel more affordable.

Stick to total costs to stay within budget instead of negotiating based on monthly payments.

2. Select the nearest retailer

You may be tempted to stay close to home to buy a car. However, you may get a better deal if you drive a little farther. Car shopping site Edmunds points out that one of the big costs he could be is the sales tax. If you live in a state with a high sales tax, you may want to go to the neighboring state with a low sales tax.

In addition, some states limit other charges from dealers, such as documentation charges or “document charges.” Researching ahead may save you money by going a little farther. (However, there are some additional considerations, such as making sure the vehicle meets state emission standards, not the state in which it was purchased.)

Consider contacting various dealers to find out the price of the car you are looking for. Let them know you are shopping. That way, you have a better chance of getting access to the best deals each dealer has to offer.

3. It’s too early to mention trade-ins

Trade-ins are designed to help reduce the overall price of your vehicle. Bringing up a trade-in too early can put you at a disadvantage in negotiations. I have.

Don’t mention trade-in first, but avoid mentioning it until the car is priced. Trade-ins can then be used to lower the final price.

4. Don’t buy loans

Buying a car at an affordable price is a good idea, but don’t forget to shop around for financing as well. Before you go to the dealer, consider getting your car loan ready.

Compare car loan rates from different institutions, including banks, credit unions, and online. You can also check the financing agreements offered by your dealer. When you borrow to buy a car, getting the best interest rate and term can save you money in the long run.

5. Skip independent inspections when buying second-hand

Don’t just take what dealers and independent sellers say when it comes to used cars. If you have a mechanic you trust, take the car in for an inspection. We need to make sure there are no unseen problems that will occur within the next few months. This can increase the overall cost of your car.

Find car problems and get a quote to fix them. You may find that the “bargain” is not very expensive. You might be better off getting a slightly more expensive car with fewer issues.

6. Consent to add-ons

Once you agree on the price of the car, sign the paperwork. Edmunds points out that some dealers are starting to rack up extra costs here. Before signing a contract, find out exactly what paperwork will charge you and how much it will add to your costs.

You can also do some research beforehand to see what the truly must-have prices are and what the add-ons cost. Review dealer-installed options, market adjustments, warranties, and other potential costs. In many cases, these items may not be required and can be negotiated outside the contract.

7. Scared to leave

Even if you love your car, don’t be afraid to walk away from a deal that doesn’t serve you. You can compare different dealers and walk away with confidence knowing that if the dealer knows you’re shopping, you might get a better deal elsewhere .

Consider looking at a different vehicle rather than “one” to have more options. If he has two or three cars he’s interested in and has shopped at different dealerships, he’s more likely to end up buying one that suits him and fits his budget.