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Buying a car can often be a stressful process. The U.S. News and World Report’s ranking of the Costliest Car-Buying Mistakes can teach you what not to do when looking to buy a new car. Learn from these eight mistakes and how to avoid making them yourself.
1. Buying a Car That Doesn’t Fit Your Lifestyle
To avoid making this mistake, make a list of your daily routines that require the use of your car. If the car you are looking to buy can’t complete all of the items on your checklist, then that car is not right for you.
2. Choosing the Wrong Trim
The letter-number combinations that follow the model type, for example, the Cadillac CTS, represent the variation in the model’s performance and interior or exterior differences.
Don’t be disappointed by test-driving the highest level of trim of a model and then pick the trim that best fits your budget. Test drive the exact model and trim that you intend on purchasing.
3. Buying for Looks
Don’t judge a book by its cover applies to cars too. Buying a car because of its attractive exterior may leave you disappointed by its performance and reliability. To avoid this mistake, make sure you research the reliability for a new or used car before purchasing.
4. Not Knowing the Average Price
You may think you’re getting a deal, but you may be overpaying. Researching the average price on the internet can be a big help and save you money when you’re ready to buy.
5. Trading in Your Car for Less
Be sure to know what your car is worth before you go to a dealer to trade. Kelly Blue Book is a good source to check the current value of your car so you can negotiate with your dealer. Also, wait until the end to mention that you want to trade in your car so that its trade-in value is deducted from the final price.
6. Purchasing Unnecessary Options
If you already have a GPS, why would you spend the extra cash on choosing an onboard navigational system? Sure it’s cool, but you could also save some money by not choosing unnecessary options such as these.
7. Not Comparing Deals
Don’t make the mistake of comparing promotions from different dealerships. Sometimes the zero-percent financing deal may end up costing you in the long run. Be sure to calculate all of your options before making your decision.
8. Not Thinking About Long-Term Costs
Thinking only in terms of monthly payments can cost you. If you get a lower monthly payment, but take out a loan for a longer period of time, the interest can end up costing you more in the long run. Make sure that you factor in all payments, fees, and interest when making your decision in order to know what you will actually be paying when all is said and done.
