| November 7th, 2008 by admin |
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Three Common Car Buying Mistakes
Three Common Car Buying Mistakes
Car dealerships have a reputation for preying upon the desires of prospective buyers. That is, salespeople often focus less on meeting buyers’ needs and more on encouraging instant gratification. While buying a car is always a significant investment, the true cost is often a result of the buyer making a number of mistakes. By shopping smart, consumers can save hundreds, if not thousands of dollars and make sure they drive home the car that meets their needs. Below, you’ll discover 3 of the most common car buying mistakes that people commit.
Mistake #1: Using The Wrong Price
Most people arrive at a dealership prepared to negotiate. The problem is that millions of people start negotiating from the wrong price. They notice the price of the car on one of its windows and start dealing from there. That’s the sticker price and it doesn’t reflect how much the dealer paid for the car. That means there’s no way to tell how much room the dealer has to negotiate (and you shouldn’t take what the salesperson tells you at face value).
Find out how much the dealer paid for the car. You can find this information online (ConsumerReports.org is a great resource). Then, identify promotions that can be deducted, such as incentives for the sales staff and dealer rebates. The price you end up with is the point from which you should negotiate with the dealer.
Mistake #2: Falling For The Deal
Those who say their impervious to advertising are often the most susceptible. Car manufacturers and dealerships are adept at creating enticing offers to spur sales. They’ll offer substantial rebates, attractive financing terms, and other incentives to persuade people to buy cars. The problem is that many consumers purchase cars to get the deal. That is, the deal becomes more important than the vehicle. You should always be aware of specials that are offered by manufacturers. But, don’t let the deal overshadow getting a car that meets your needs.
Mistake #3: Trade-In Laziness
Most of us have a lazy streak and accommodating it can be healthy (occasionally). Unfortunately, a lot of people are lazy when trading in their old car to a dealer. They neglect to do their homework to identify the value of their car before trading it in. In many cases, a dealership will be willing to shave hundreds of dollars off the price of a new car because they know they’re getting the trade-in for a steal. If you’re going to trade your old car in, find out how much it’s worth and use it as a bargaining chip.
Shopping Smart For A Great Deal
The 3 mistakes I’ve just described cost car buyers millions of dollars each year. Remember, dealerships are often financial wizards. They know the numbers of their vehicles intimately. That means they can massage those numbers to yield the greatest profit without your realizing it. Avoid making the 3 mistakes above and you’ll boost your chances of getting a great deal on your next car.
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