Tips to Avoid Costly Mistakes While Buying Car for First Time

Buyers find it hard to buy a car, especially when it is their first time. They certainly make mistakes but they learn a lot, which gets applied carefully while purchasing several cars in future. Learning from your own mistakes is the golden mantra but first time car buying mistakes can pile up to thousands, which can even impact financial stability and credit ratings for years.

Tips to avoid first time car buying mistake

Not shopping around

There are many used and new car dealers surrounding your town or city. Stop at the closest dealer recommended on social media or by a friend. Spend some time to research the dealers and cars in your area. Check on the reviews of specific dealers or cars and even learn about the financing options offered.

Ignoring to go for a test drive

After shopping around, you decided to choose the 2019 Chevy Sonic AZ. The list has narrowed to a single year, make & model. You just don’t say you wish to buy the Chevy Sonic AZ because there is 2 model body style and 3 trim options to choose from.

Two same cars differ in cabin noise, performance, ride quality and more. Therefore go for a test drive and if you feel comfortable behind the wheel and the engine works fine then sign for it.

Allowing to be pressured

Several dealers make use of pressure tactics, as soon as they detect first time buyers. Phrases like ‘deal is only for today?’ means a red flag but questions like ‘Let’s look at a car within your budget?’ indicates the seller is considering customer’s needs.

If you feel the pressure then don’t hesitate to walk away. It is wise to take a levelheaded elder or friend, so that you are kept on the track.

Assuming dealer has advantage

Car buyers are vulnerable and nervous, as it is their first time visit to a dealership. Several dealers pressurize them to choose a financing option, which is profitable to them rather than the buyer. Such swindling is a past, today there are wide options, where even buyers with poor credit ranking get decent financing.

Good dealer is always ready to provide different financing option, so as to add a satisfied customer. If you ask and are not satisfied with the answer then move to another dealership.

Opting for long term financing

Several buyers choose long 72 months term rather than 36 months. One thing to remember is with a decrease in monthly payment there is an increase in total car cost. So to get a good deal buy less expensive used or new car or save for big down-payment and short finance term.

Not clear about auto financing contract

Before you visit the dealership get familiar with auto finance contract. Signing at the bottom is easy but some dealers can take advantage. After negotiating pricing and financing make sure all the items that is dealer-covered is mentioned in the final bill.

Avoid such car buying mistakes to save a lot in future!