Each week, I hear from Car Pro Show listeners who've been thwarted by making classic car buying mistakes, without even knowing it. So, here is a handy list of 8 common mistakes people make and tips on how you can avoid them:
#1: Not Trusting Your Gut.
This one is easy to avoid. Trust your instincts, you have them for a reason. If something doesn't feel right, either with the business or salesperson, leave. You should never bow to intimidation tactics at a car dealership. Nobody is going to hold a gun on you, the threat of you walking out the door is a dealers biggest concern, use that you your advantage. Never be afraid to stand up and say: “thank you for your time.”
#2: Believing Everything You Read Online
Choose reputable sources when researching a vehicle or getting dealership info. Also, understand that often dealership prices are 'bait and switch' prices just to get you in the door. Don’t believe everything you read about a car online. If you look for “issues” with a particular car, you’ll find them, but remember the info may not be accurate, the vehicle owner may have abused the vehicle. You get a very jaded opinion, the very happy owners don’t take the time to post, so you only see the bad.
#3: Rushing The Paperwork Process
Do yourself a favor. Slow down. Read what you sign so you aren't surprised down the road to find extras you didn't know about or an extended warranty. Paperwork is tedious but read it all. You are signing a legal, binding contract. Pay particular attention to anything that has a dollar amount next to it. I understand you want to leave by this point, and the finance manager wants to get on to the next deal-but if you don’t understand something, STOP AND ASK about it.
#4: Taking An Improper Test Drive
Don't buy the car of your dreams without driving it. A 'similar' vehicle won't do. Test drive the one you want to drive off the lot with, so you don't start out with problems or overlook options that are important to you. Don’t shortcut this step, it is critical. Drive the car for half an hour, a Car Pro dealer will not mind this at all. Test it on highways and regular streets. Go over a railroad track. Notice if you feel any pain in your back. Can you see the road ahead and behind? Although it is hard to do, stay focused on the road.
#5: Not Knowing Your Credit Score
Know where your credit stands. Less than trustworthy dealers will try to work bad credit to their advantage and could result in you paying a higher price and interest rate. Know the best interest rate you can get on your own, and challenge the dealer to beat it, they very often can. The dealer doesn’t make a sale unless they can meet terms that are acceptable to you.
#6: Playing Games With The Dealer
Don't withhold info from a dealership, like whether or not you have a trade-in, or how you are paying for the car. Good dealerships won't play games with you, so in return, you shouldn't play games with them. Our dealers don’t want to sell you just one car, they want to sell them to you for years ahead. Build a relationship of trust with your salesperson. Salespeople in dealerships get a bad rap and sometimes that is earned, but it should not be assumed they are dishonest. Most work extremely hard and long hours, but most go home to a family just like you do, they go to church, and they are good people. There should be mutual respect. Resist the temptation to paint all car salespeople with a broad brush. Just because you ran into a bad salesperson at some point in your life or maybe even that same day, they are not all the same. There are good and bad people in every profession. The Doctor that barely passed class grades has the same diploma as the Doctor who graduated with the best score in college.
#7: Not Knowing Interest Rates
See #5. If you have a bank or credit union, find out what rate they can give you. Just get on the phone and ask them what their very best interest rate is on a car loan, and what are the requirements? How long will they go, are there stipulations on down payment? They’ll tell you and will know these things easily. Then give the dealership the chance to meet or beat the rate.
#8: Leasing When You Shouldn't
Don't get caught up in a lower monthly payment if there is any risk of driving over the mileage limits. It'll cost you a pretty penny in the end. Also, long-term 42-month or longer leases are a bad idea, and I also rarely recommend 3rd party leasing companies. Check out the leasing section on the Car Pro FAQ page for more on this. I love leasing, I do it myself, but as I say on the radio show, leasing is not for everybody.
If you can avoid these mistakes, you'll get a much better overall deal and have a happy ownership experience.
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