It is not everyday that you buy a car and when you do, you definitely do not want to make it a perilous venture for your finances. Unless you have a lot of money to burn, you do need to do a lot of research and a thorough financial planning before you buy a car. It has to be a calculated decision rather than a spontaneous choice.
Here is a brief rundown on the ten most common mistakes that will either cause you to pay lots of extra money needlessly or will cause you to end up driving a low-grade automobile.
Going With An Impulse
Most of the times, it has been found that people fall in love with a particular model – not because of any solid reason, just on an impulse. The best approach is to do a thorough research and shortlist at least 2-3 models before settling in on one.
Not Getting What You Need
Look for a model that you need – not the one that has an attractive look and appearance. Some of the important factors that you should keep in mind while selecting your car include fuel economy, adequate trunk space, and other such things. The idea here is to make sure that the vehicle you are buying fits your particular lifestyle.
Skipping The Test Drive
Another common mistake that most people commit is that they skip the test drive. It is good that you have researched it functions and features, but you still need to test drive the car to make sure that you are comfortable with the car in every way. After all, you are going to drive these four wheels for a significant part of your life.
The Sticker Price Is The Final Price
Many people think that the sticker price cannot be further negotiated upon. This is not true. Therefore, once you short-list a few models, the next step is to start negotiating for each model. If a specific dealer is not interested in negotiating the price, move on. The competition in the market is high so you are likely to get a better offer from another dealer.
Comparison Shopping Is A Time Waste
Comparison-shopping is a must. Get free quotes from at least 3-4 car dealers and compare their offers. Tell each of these dealers that you are contacting all of them. This way, they will actually bid on your car project. Many people hesitate in taking the full advantage of the high volume of competition in the market. Make sure you are not one of them.
Not Negotiating The Different Pricing Aspects Separately
Do not negotiate all pricing aspects jointly. Trade-in-value of your old car, Sticker price, and other such things – negotiate on everything separately.
Timing Is Important
Most buyers have bad timing when they contact a dealer. The best time to start the bidding process is the middle of the month. Do not hurry. Keep negotiating till the end of the month. Every dealer has a certain target to achieve every month. Therefore, the end of the month is the time when every dealer is desperate to close the deal anyhow. The right timing may even get you the most unlikely offer.
Taking “No” For An Answer
While you are negotiating the deal with the salesman, you have to be very stubborn. Don’t take “No” as an answer. When there is a bidding going on, no salesman will give up.
Not Reading The Terms And Conditions Carefully
You must read the terms and conditions carefully to make sure that there are no hidden or extra costs.
Last, but not the least, many people focus on the monthly payment and not on the final price. This is not the right approach. Always think for the long term. A low monthly payment may sound attractive but it could be a very costly deal in the long run. So, the smart way is to think in terms of the overall price instead of monthly payments.