New Car Buying Tips: How to Avoid Common Car Buying Mistakes

You’ve fallen in love with a car and you’re determined to get it. Take a deep breath and let the emotions cool. You may be on the verge of making a mistake. Give yourself at least an evening to think about it before you buy. You’ll be less likely to encounter trouble when you’ve had time to let those last minute thoughts arise. In the meantime, read these 6 new car buying tips and avoid buyers remorse.

Not Knowing Your Credit History Is A Mistake

Most people will look for a new car before inquiring about their credit status. Unless you will be paying cash for your new car, your credit history will play a major role in your automobile financing options, interest rate, and bargaining leverage. You are legally entitled to have a free credit report from each one of the 3 major credit bureaus every year. To get yours, contact Equifax, Transunion or Experian; or visit Annual Credit Report. Make sure your information is accurate and correct any mistakes that affect your score negatively.

Once you know your score, you’ll have an idea of how much interest you’ll pay. Check sites like bankrate.com to find out what the current rates are. If your score is subpar, you’ll pay higher. In that case, you might want to consult someone with knowledge of the process. Or, browse our articles for tips and info.

Not Looking for Alternative Sources of Auto Financing Is a No-No

Before you go shopping for a new car, go shopping for financing. Don’t assume only auto dealerships can finance your new car. Credit unions, banks and online auto financing companies have competitive options you can look into. You can even get quotes online. We offer a comparison service that conveniently shows you the best rates available. Click here for information.

In the event that you can’t afford what you need by financing with a loan, you should consider leasing. It usually comes with lower monthly payments. Check sites like CarLeasingSecrets.com for more information.

Not Knowing How Much You Can Afford Is Unadvisable

As a rule of thumb, the total car payment (for all cars you own) should be no more than 20% of your net income. You should negotiate the full sale price of any vehicle you purchase. Leave the monthly payment as a secondary figure, to be calculated afterwards. Of course, it helps to have an idea of what the payment will be. Check out our calculator for help with that.

Talking Trade-In Too Early Is a Bad Idea

The new car price is determined by the amount of cash a dealer can bring in on a certain car. Don’t start the conversation about your trade-in at the beginning of the shopping experience. It’s better to focus on the sale price of the car you want and then move on to trade-in value. This simplifies the negotiation process and gives you an advantage.

Falling For Expensive Add-ons Is Not What We Suggest

The final moments of a car buying experience may be the most crucial. Before you sign the final contract, the dealer or financial manager may bombard you with add-ons like extended warranty, satellite radio, roadside assistance and other services that may be useful but overpriced. Don’t jump into any of their offers if you have not done research beforehand.

Going In Blind Is Untactful

Information is power. Know everything you need to know before you visit a dealership. We suggest getting quotes for multiple vehicles, from multiple dealerships. This increases your negotiating leverage because when a salesman knows you have other options, you’re more likely to be offered a better deal. Click here to get quotes online, easily, conveniently, and completely free.

New Car Buying Tip : Learn what not to do and you will be better prepared for your negotiations.