Top Ten Car Buying Mistakes

  • Not realizing your needs - If you do not realize exactly what you need in a vehicle (e.g., going to work, taking vacations), you could commit yourself to a financial responsibility that doesn’t go well with your needs.
  • Not doing your research - This mistake may be one of the most common because doing research takes time and it isn’t as much fun as going to the dealership to drive new cars. However, it is a crucial step in the car buying process.
  • Not Negotiating - Negotiating can be an awkward experience, especially if the dealer really works the guilt trip, but that doesn't mean it shouldn’t be done.
  • Focusing on your monthly payments and not the total cost - Telling the dealer how much you can afford a month allows them to manipulate all of the other numbers involved (i.e., down payment amount, finance rate, length of term) to “accomodate” your monthly expenditure. Instead, only the total cost of the car should be considered in negotiations.
  • Relying on dealership financing- The problem with relying on dealership financing is that you are not in control of the situation, which makes you vulnerable to dealer scams.
  • Convincing yourself that the car you like is also the car you need- This means that if you buy the car you want and realize a week later that it is not the car you need, your car will never be worth what you paid for it.
  • Not knowing how much you can afford before entering the dealership - Before you walk into any dealership you should know how much you can spend, what your credit report says, what financing rates you can get outside of the dealership, and what incentives are being offered on the cars you are looking at.
  • Not knowing the other cost associated with the car- When doing research you should be looking at the cost of insurance, maintenance, repairs, fuel, and taxes.
  • Buying the “deal” instead of the vehicle. With all the 0% financing, employee pricing, and manufacturer rebates Just because you get a discount doesn’t make it the right car for you.
  • Skipping the test drive. Someone who buys a car without test driving it first, deserves to be unhappy after their purchase.