Common Car-Buying Mistakes to Avoid
Buying a car can be a tedious and stressful process. As most people only purchase a car once every five to eight years, they are often out of practice and unprepared for the experience. Therefore, we have compiled a list of common mistakes that people make during the process and how to avoid them. In addition, be sure to secure your vehicle with a customized NJ Auto Insurance policy.
Mistake #1: Failing to line up financing.
Dealer financing comes at a premium cost. To avoid overpaying or being stuck with a high interest rate, get pre-approved for a vehicle by your bank or credit union. This will make you a competitive buyer, as well!
Mistake #2: Only focusing on monthly payment.
Rather than focus solely on the monthly payment, consider the entire cost of ownership of a lease and a purchase. While you might get a low monthly payment you want over a longer finance period, you will often end up paying more in interest. Further, at the end of a lease, you will have to trade in or surrender the vehicle. With ownership, the vehicle is yours once the final payment is made. Consider the costs of insurance, maintenance, and repairs on whichever vehicle you choose, as well.
Mistake #3: Foregoing a test drive.
An IBM auto retail survey found that 20 percent of new car buyers and lessees in the U.S. don’t test-drive a single vehicle. Gregg Fidan, founder of RealCarTips.com, recommends that first-time buyers test-drive at least seven different vehicles, and those replacing a vehicle test-drive at least four, explains U.S. News. Don’t take the dealer’s word for it; test-drive the vehicle yourself to see how it handles and to make sure everything is working correctly.
Mistake #4: Choosing a vehicle that doesn’t suit your needs and lifestyle.
Whether it’s space, fuel efficiency, safety, or storage, test-drive and choose a vehicle that is best suited to your needs. Don’t let a salesman steer you in the wrong direction based on their personal preference. Instead, focus on your needs and what type of vehicle your lifestyle requires.
