Five Common First Time Car Buying Mistakes To Avoid
While buying an automobile might seem straightforward, there are a number of car buying mistakes that you’ll definitely want to avoid, as they can cause you unnecessary stress and drive up the purchase and maintenance costs.
Getting An Auto Loan
This is one of the worst mistakes you can make. Going into debt to purchase a new car makes little sense because as soon as you drive it off the lot it will immediately lose value. The majority of automobiles are depreciating assets, which means that they tend to lose value over time unlike wine and real estate which tend to increase. Additionally, you’ll have to make monthly payments with interest added, and if you run into a financial emergency and fall behind on payments the vehicle can be repossessed. Unless you’re buying a rare and exotic vehicle like a Lamborghini or McLaren, the car will not hold its value well so it’s best to pay upfront in cash.
Not Thoroughly Reading Your Vehicle Finance Contract
Nobody likes to read the fine print, but when it comes to buying a car you’d better. The vehicle finance contract is one of the most important documents. Unscrupulous dealers will take advantage of buyers that are either in a rush or too lazy to read about the financing, vehicle options, or other considerations. Read every line and if there is something you don’t understand, inquire about it and do not sign the paperwork until you’ve understood and agree with all the terms.
Not Getting The Car Inspected Before Purchase
Used car salesmen have developed a poor reputation for selling vehicles that look great on the outside, and run well for a short period of time, but then break down shortly after purchase, requiring you to spend hundreds or thousands of dollars to get them repaired. Never buy a used vehicle without first hiring a mechanic and paying him to look under the hood to make sure there are no issues with it. If you’re buying a new vehicle, make sure it comes with a warranty.
Letting The Dealer Pressure You
When you walk into a dealership or meet with a private seller to consider purchasing their vehicle, always be prepared to cut your losses and leave. Some car dealers are hustlers and can identify first-time car buyers a mile away, and will use pressure tactics or try to talk them into buying a car that they don’t need. Be wary of sellers that move too quickly and instead buy from those that are patient and willing to work within your budget.
Rejecting Used Vehicles in Favor of New Ones
There are some people that turn up their noses at the very idea of buying used and can’t stand the idea of driving around in a vehicle that has been previously owned. Used automobiles are great for first-time purchasers as they are more affordable than their newer counterparts and will sustain less depreciation in the future. Also, used cars tend to have more affordable insurance than brand new vehicles so you’ll save on insurance costs over time.