Were you aware that the end of the month or quarter is the best time to get a great deal on a new or used car? The rationale behind this is that car salespersons — eager to achieve their sales targets — are in a wheeling-and-dealing state of mind.
But while this information could help you score a discount on your next vehicle, you could hurt your cause if you do any of these 18 things at the car dealership.
Get Too Excited
One of the worst things you can do is get overly attached to a specific vehicle. Even if you have your eyes on one, don’t let on that you’re bubbling with enthusiasm over a particular make and model. A car salesperson could seize on that and play hardball if you push for a better deal.
Focus Solely on the Monthly Payment
It’s easy to get fixated on the monthly payment — especially if it’s low. What you ought to consider, however, is the total amount due. The length of the loan and the interest rate are greater factors than the monthly payment amount if affordability is your chief focus.
Fail to Explore Financing Options
According to the Mortgage Calculator site, a $20,000 car loan with a 5% interest rate over five years will cost you $22,645.48. But that same loan amount over the same period with a 3% interest rate will set you back $21,562.43. So, the lower interest rate can save you $1,083.05.
You should secure financing before setting foot in a car dealership. Your bank or whatever financial services institutions you deal with will offer a better interest rate than the car dealer. So, it’s in your best interests to secure the best terms and then look for a vehicle.
Not Reading Vehicle History Report
Don’t get so starry-eyed about a used car you like that you refuse to comb over the vehicle history report. It’ll show you about previous owners, any accidents, and other things that’ll factor into your buying decision.
Choose the Dealer Closest to Your Home or Workplace
One of the worst things you can do is choose a car dealership simply because of how close it is to your home or workplace. Doing so can make the process more convenient. But you should research and find the best places to get your next car rather than just choose the closest one.
Fail to Negotiate
According to a survey by Cox Automotive, the parent company of Kelley Blue Book, car dealers are pessimistic. They’re worried about their near-term futures. While that’s nothing for consumers to celebrate, the situation does mean car buyers have some negotiating power.
Some consumers think that negotiating is rude. But that’s only true if they go about it the wrong way. You can walk away with the car you want at a discount if you haggle.
Make Decisions Too Quickly
Another mistake you should never make when shopping for your next car at a dealership is making hasty decisions. Don’t march to the car salesperson’s drumbeat. If you don’t understand something, ask. If you’re struggling to decide, take your time. Buyer’s remorse is one of the worst things for any consumer to experience. You can avoid it by taking your time.
Pass Up the Test Drive
Never skip the test drive. Whether buying new or used, you must test drive a vehicle before buying it. The only thing worse than skipping the test drive is purchasing a car sight unseen — where you see an ad online or in a publication and agree to buy it before seeing it.
Buy Without Considering Depreciation
One reason to avoid buying a new car is the massive depreciation you’ll have to shoulder. New vehicles lose 20% of their worth in year one. So, if you buy a new car for $40,000, you’ll have to cope with an $8,000 depreciation hit in 12 months. LendingTree adds your new vehicle will be worth around 40% of the purchase price after five years. That’s one reason to buy used.
Fail to Get Inspection on Used Vehicle
A used car will spare you massive depreciation and cost you much less overall. But don’t sign on the dotted line until you get a mechanic to inspect the automobile. If you can’t give a car a proper once-over, you need a professional independent of the dealer to do one for you.
Accept Lowball Trade-In Value
You should avoid accepting a lowball trade-in value. Car dealerships typically offer much less than is fair. If you can’t get a decent trade-in value, consider selling your trade-in privately instead.
Buy Something You Can’t Afford
Never spend more than you can afford for a car. According to one source, the country-wide auto loan debt last year was $1.51 trillion. It adds that there are north of 100 million auto loans for new and used vehicles. Many people struggle to pay theirs off — don’t be one of them.
Not Leaving When Your Gut Tells You To
Trust your gut. Don’t be afraid to go elsewhere if you feel uncomfortable at a certain car dealership. That’s especially true if the car salespeople use aggressive or dishonest tactics. Find a retailer that values your patronage and treats you fairly.
Not Considering Multiple Options
Unless you research extensively and know exactly what you want, it makes sense to consider various options at a car dealership. You may have your mind made up on one thing but find better deals for other makes and models that meet your needs.
Focus More on the Deal More Than the Vehicle
Another mistake that’s easy to make is focusing on the deal so much that you fail to get the right vehicle. A car dealership might have a specific make and model on sale. Even if you can get it at a steep discount, you might be disappointed if it’s not the right vehicle for you.
Purchase Unnecessary Add-Ons
Don’t get so caught up in the process that you buy add-ons you don’t need. If you typically buy a new car and trade it in for a new one every few years, a costly extended warranty probably isn’t necessary. Car dealers make a lot of money selling add-ons. Avoid the ones you don’t need.
Underestimate the Importance of Modern Safety Features
If you haven’t upgraded your vehicle in a while, the safety features available today might surprise you. But researching them will demonstrate how essential many of them are. Don’t undervalue the importance of the technology available.
Not Reading the Contract
It’s unwise to sign any contract before reading it. Before you sign the paperwork to purchase a car, ensure you read it from top to bottom. Ask questions if you have any.
Steer Clear of These 18 Mistakes When Shopping for a Car
Avoid these 18 missteps when shopping for a car at a car dealership. There are some good deals to be had, and many reputable used and new car retailers are there to help. It’s your job to find them. Remember these tips so you don’t trick yourself out of the car you want at a fair price.
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