Buying a car is an exciting time, but it’s also fraught with peril. In your effort to find a car that’s reliable, comfy and stylish, your seemingly endless choice of car models can be overwhelming, which can lead to a lot of poor decisions along the way.
As such, when you’re in the process of purchasing a new car, it pays to be prepared and armed with basic car buying knowledge. Here are the four-costliest mistakes car buyers often make.
- Buying a car impulsively. A car is one of the most expensive purchase you’ll make in your life, and you don’t want that huge investment go to waste by buying a car that you know little to nothing about. Research the car you’re interested in extensively, and don’t let your excitement get the best of you.
- Buying a car that you can’t afford. Your car loan payments aren’t only the monthly expenses that you have to worry about. If you get tricked into buying a car that overextends your budget, you may not have any leftover cash each month for your monthly bills. Don’t be that guy who ends up living in his car because he can no longer afford to pay rent. Make sure you limit your car mortgages to 30-percent of your monthly salary.
- Overlooking extra costs. When asking for a quotation, make sure it lists everything that you’re being asked to pay for, and then check the list. You could be paying for something you’re not going to use, such as car mats, seat covers, added insurance, extra fees, and more. Ask what each item on the list means, and if it’s totally necessary. If you don’t need or want it, have it removed.
- Failing to shop around. Sure, it’s convenient to just buy the car you want from the dealership nearest you, but you could be paying a lot for the convenience. It’s smarter to visit a handful of dealers first. When it comes to a great deal, it’s always best to shop around, so try to visit at least three dealerships before making your final purchase decision.