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10 Common Car-Buying Mistakes

Sometimes young car buyers can be taken for a ride by the slick and canny salesmen at car dealerships. You may be a new car buyer, or even a first time car buyer, but a few tricks of the trade can help you become savvy and get the car of your dreams at a reasonable price. To help you get through the process smooth and easy, we have made a list of things you can do to overcome the sweet talks of the salespersons. Avoid these problems and you can get a car at a good price. In each 'don't' we have also mentioned the 'dos' that will simplify your car buying process.

Don't be a Monthly Payment Buyer

Car salesmen have a way of assuming that young car buyers will take a car loan to buy a new or used car. So, as soon you settle down yourself in the dealership, the first question they ask is, "What do you want your monthly payment to be?" Avoid answering that question by getting preapproved financing. This is good for a number of reasons. First you get to know any credit problems that you might encounter before you go to the dealership. Secondly, you get competitive interest rate for your car loan. And, last but not the least, it makes your negotiations very simple. So, when the dealer asks you about payment options, smile and say, "I'm a cash buyer - let's just talk about the cost of the car."

Don't Go to a Dealership Alone

First time car buyers would benefit by taking more people with themselves. What happens at the dealership is that there is more than two sales people pitching their products to you at once. So, make sure that you don't get outnumbered. Ask a friend or a family member to come along. But take someone that you can totally trust to get you out of trouble. Trust us, you don't want to take a friend who will support the sales team and tell you to buy something you don't want.

Don't Go Car Shopping on the Weekend

Weekends are a terrible time to go car shopping, mostly because of the traffic in the dealerships. In a situation like that, two things happen: the service is not very competent and the car price stays high. In case you don't buy the car for their price, they say that someone else there would. But on Mondays, the weekend seems far away and most sales managers would listen to you very patiently. So, you might consider taking a day off and enjoy some guilt-free car shopping.

Don't Go to the Car Lot at All

We buy stuffs online all the time. It is possibly the easiest way to compare the prices, and you can do the same when it comes to car buying. Don't go to the dealership unless you want a test drive. And once you have experienced the feel of the wheel, you have some time to think about the deal. You can also find the dealer closest to you and find who gives you the best prices. Once you have the prices, you can seal the deal.

Don't Say Yes Until You Know the Whole Deal

When the salesman presents to you the overall price of the cars, be insistent and ask for a breakdown of the fees including the registration fees, road taxes and car insurance.

Don't Say "Yes" in the Finance and Insurance Room

The Finance and Insurance Room (F&I for short) is a place where the dealership tries to sweeten the deal. The F&I manager would pitch all kind of products, like fabric protection, to you. This is where the dealers make a lot of money. Just because you are on a buying spree, don't say yes to such products because mostly they are very expensive.

Don't Automatically Buy the Extended Warranty

We know that peace of mind is an important thing. And extended warranty certainly guarantees that. But before you shell out extra cash for it, keep in mind these two things: It is negotiable and you can always buy it later. So why be in a hurry to pay for something now that you are not going to utilise for another three years or so. Keep the money. You can invest it and pay for the extra coverage later.

Don't Sign the Contract "Just to get it Over With"

Salesmen are really apt at wearing their customers down. Don't be in a hurry to give in to them or else you will lose money. If you are not sure if you are doing the right thing, you can always walk out and come later. There is no need to feel guilty about leaving the salesman hanging there. It is your money, and you want to spend it wisely.

Don't Negotiate Until You Have the Numbers

Get online quotes from different dealers in your city before you head to a particular dealership. This will let you know of any discounts or specials offered at a particular dealership. If you are equipped with information, negotiating with the salesman can be extremely fun.

Don't do Business with a Salesman who is Pushy or Intimidating

Whether you know it or not, you have a choice. You can leave the dealership if you get a bad vibe. You don't want a car salesman coming on to you like he is giving you fatherly advice. If the salesman is pushy during the test drive, there are high chances that he will ask you to make an offer as soon as the test drive is over. And he will be extra pushy as the deal progresses. Find a salesman or a saleswoman with whom you can talk comfortably without being an underdog.

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