Ten Common Car Buyer Missteps

Buying a car is not easy, so it’s no wonder that many consumers make a few mistakes along the way. You can avoid these common blunders by reading up on the 10 most common car-buying missteps.

1. Not keeping a poker face. Remember that you are doing business when you are buying a car, so you shouldn’t let your emotions get the best of you. Although you may have found your dream car, don’t get too excited or overzealous about purchasing it because it can hurt the deal you get in the end. Also keep reality in view—if you can afford a $15,000 car and your dream car is $25,000, you’re probably not going to be able to negotiate the price that low.
2. Overlooking needs. A good rule of thumb for car shopping is to get what you need rather than what you want. You might find yourself drawn to a sexy sports car or a large SUV for vanity or style, but are these cars practical for your lifestyle? Keep in mind that the thrill of a new car wears off rather quickly, but the payments on that car last for years.
3. Not doing your homework. When it comes to car buying, it’s all about research, research, research! With the Internet, a wealth of information is at your fingertips, so do plenty of research on car reviews, Blue Book pricing, loan terms, etc. Don’t ever walk into the dealership with no information, as you will probably get taken to the cleaners. Dealers are also not the most reliable source for objective information, so don’t count on that either.
4. Fixating on payments, not price. Dealers and some lenders will try to swindle you into negotiating monthly payment figures rather than the total cost of the loan. Often, in doing so, they will have made themselves more money by extending the loan and charging you more interest over time. Negotiate the total cost of the loan rather than fixating on the monthly payment amount.
5. Not comparison shopping. Without question, comparison shopping is the best way to get the lowest-cost car loans with the best terms. You should compare 3-5 different loans to ensure you’re getting the best deal. With our website, we automatically provide you with multiple quotes, so we make comparison shopping a lot easier.
6. Selecting a dealership by location. Dealerships are not all created equal, and the closest one might not be the best one. Ask around to see which have the best reputations.
7. Mixing trade-ins with price negotiations. Don’t let the dealer throw in your trade-in value to the price negotiations. Negotiate them as separate points.
8. Forgetting closing costs. Beware of fees, interest rate changes, dealer add-ons, and insurance costs that dealers sometimes tack on post-negotiation before you can get out the door.
9. Financing at the dealership. Dealerships specialize in selling cars, not giving the best deals on financing. Look elsewhere for your loan.
10. Trying to manage things alone. If you doubt your powers of negotiation or just don’t want to deal with the headache of automotive finance services and car-buying, think about a program that can do it for you. One such program is the AAA Endorsed Car Buying program.