Updated: February 16, 2012 at 1:28 am PST
I remember buying my first car not that long ago. Given, I was 17 years old and had zero car knowledge, but I was excited to finally get my own set of wheels. Unfortunately, I ended up paying a bundle for something that wasn’t worth very much and paying loads on top of that for repairs and extraneous costs that shouldn’t have been necessary. Hopefully you’ll learn a bit from my mistakes and avoid getting ripped off next time you’re in the market for a new car.
According to Consumer Reports, the number one mistake car buyers make when looking to purchase a vehicle is falling in love with one single model. My dream model is a Lexus, but luckily for me, it’s not what I bought when I was unemployed at the age of 17. Sure, you may be absolutely in love with that 200-plus horsepower Roadster, but is it really right for you? If you’re married and have 2 young kids and a mortgage to pay, or an unstable job, or a weekly carpool to take part in, then chances are the Roadster probably isn’t your best choice, even if it is your dream car. So, don’t let emotions rule your purchase; consider things like reliability, reviews, safety, and features and keep an open mind. Assess your real needs and avoid that buyer’s remorse.
Other commonly-made mistakes include mistakes in price negotiation. Don’t expect to enter a dealership without any preparation and leave with a deal. It’s just not possible. Dealers make a living selling cars and earning immense profits and commissions, so naturally their goal is to make you think you’re getting a deal, even when you’re not. So, walk in prepared. Learn the true dealer’s cost of the car you’re looking to purchase and not just the sticker price. Knocking a few hundred off the sticker price isn’t a good measure of savings. Knowing what the dealer paid for the car can help you figure out what a fair profit margin is for the dealer and helps you negotiate a much better deal. Also avoid focusing on monthly payments as a measure of how much you want to save. It’s often the first question a dealer will ask you when you walk in, and bundle that cost with ‘deals’ and ‘markoffs,’ making you think you’re saving when you’re not.
Finally, be smart when dealing with miscellaneous factors. If you’re buying used, then be sure to have an independent mechanic check the car out before you make your final decision. Avoid paying for useless extras, no matter what kind of car you get. Dealers may try to add fees for useless features, such as ‘rust-proof’ coating and ‘fabric protection.’ All cars come equipped with paint and fabric protectors, and you could easily buy any of these cheap at your local car shop.
