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Common Car Buying Mistakes
Buying a new car is always exciting. The buying process is complicated as many things have to be considered and it has happened many a times that the car buyer end up overpaying or with a car that s/he repents. Below are 10 mistakes that car buyers often make that can quickly turn that initial excitement into buyer remorse sand how to avoid them.
Falling in love with a model
When spending lakhs of rupees on a car, emotion shouldn't rule the day. Becoming infatuated with a single model can blind you to alternative cars that may be better for your needs or make you skimp on thoroughly researching a car's ratings, reviews, reliability, or safety and pricing information. A wide-eyed approach can also leave you more susceptible to a salesperson's tactics to get you to pay more than you should. To find the right car for yourself, you should set emotion aside and focus on doing your homework, comparing different models and assessing your real wants and needs.
Skipping the test drive
The test drive is one of the most important parts of the car-buying process. A lot of cars look good on paper--especially in glossy brochure photos--but the test drive is your best chance to see how a car measures up to expectations and how well it "fits" you and your family. It's important that you take a test drive of at least 30 minutes.
Negotiating down from the sticker price
Don't use the sticker price as your gauge when negotiating a deal. A salesperson may offer you a deal but unless the car is in big demand and short supply, you can often get an even lower price by negotiating up from what the dealer paid for the car. When you know the dealer's true cost, you'll know how much profit margin it has to work with and can determine a reasonable target price with which to begin your negotiations.
Focusing only on the monthly payment when negotiating
Salespersons like to focus on a monthly-payment figure while negotiating a deal. Don't take the bait. It's the first step down a slippery slope of being manipulated with numbers and overpaying for your car. Using the monthly payment as the focus, the salesperson can lump the new-car price, trade-in value and financing terms together, giving you a "good price" in one area while making up for it in another. Instead, insist on negotiating one thing at a time. Settle on the car's price first and then discuss a trade-in and financing, as necessary.
Buying the "deal" instead of the car
Car makers have been offering a variety of attractive sales incentives in recent years, from 0% financing and hefty cash rebates to employee-discount pricing programs. These can save you money, but it's important to remember that any deal is only as good as the car that's attached to it. Just because you can get a good discount doesn't mean you should buy the car. After all, you'll be living with the car for years, so make sure it's the right one for you. Thoroughly research any model you're considering and check ratings and reviews of competitive models at Carazoo.com.
Waiting until you're in the dealership to think about financing
You might be a whiz at negotiating a good deal, but if you don't choose your financing just as carefully, you could lose everything you saved on the car's purchase price. A car buyer who hasn't researched financing terms is especially vulnerable to being manipulated by the dealership. That is why it's critical to compare shop for financing terms at different financial institutions and get pre-qualified for a car loan before you go to the dealership to buy the car. Check interest rates at banks, credit unions, or online financial sites to see which offers you the best rate.
Underestimating the value of modern safety features
Present day cars offer an array of advanced safety features. But many car buyers in India do not know which are most important or what to look for when comparing cars. Antilock brake systems (ABS), Electronic Stability Control (ESC) and head-protecting side air bags, for instance, are effective and well worth the money. Unfortunately, you can't always depend on a dealership's salespeople to give you accurate information or reliable guidance about these features. That's why you should thoroughly research the benefit of all available safety features and look for cars that have the ones that will best protect you and your family.
Buying unnecessary extras
Dealerships often try to sell you extras that boost their profit margin but are a waste of you money. They can include rust-proofing, fabric protection or paint protectant. Don't accept those unnecessary services and fees. If you see those items on the bill of sale and you haven't agreed to them, simply cross them out and refuse to pay for them. Car bodies are already coated to protect against rust. You can treat upholstery and apply paint protectant yourself with good off-the-shelf products. Also think twice about an extended warranty. It can cost thousands of rupees. But if you buy a model with good reliability or if you expect to have the car only for five years or less, it often isn't worth the cost.
Not researching the value of your current car
You could get a great deal on your new car but lose all of the savings--and more--on your trade-in. That's why it's critical that you research the value of your current car before buying your new one. Find out what both the used-car retail and wholesale prices are, so that you'll know what you should be able to get if you trade it in or if you sell it yourself. By knowing your car's true value and by sticking to your price during the negotiations, you can get your car's full value, whether you trade it in or sell it yourself.
Not having a used car checked by an independent mechanic
When buying a used car, condition is everything. Before you buy a used car, have it scrutinized by a repair shop that routinely does diagnostic work. A good mechanic should be able to tell if the car has been in a major accident or has a hidden but costly problem. Ask for a written report detailing the car's condition, noting any problems found and what it would cost to repair them. You can then use the report in your negotiations with the seller to adjust the price accordingly.
