They say that practice makes perfect. Unfortunately, for most American consumers trying to purchase a new car, they do not have that advantage. Most of us only purchase a new car every five to 10 years. The following are some of the biggest mistakes new car buyers make when they are shopping for their new dream ride.
1. Failure to Fully Research New Vehicles
The auto industry can change very rapidly over the period of a decade. Features in vehicles can change drastically in that time frame. Also, automakers that had previously not been as highly regarded can make significant changes and rise to the top. At the same time, other automakers can have some large missteps. Even very popular vehicles can change in desirability in looks and features.
It is best to consult reviews from a couple of the major automotive review companies based on the type of vehicle you are looking for before heading out to the dealerships. This will allow you to compare vehicles from different manufacturers from the perspective of a professional automobile reviewer.
2. Failure to Research Your Budget, Financing and Trade-In Value
Today, we can search the internet for automobile financing from the comfort of our homes. We can also look on the dealer’s website and determine the trade-in valuation of our current vehicle. This can help you find the right vehicle for your budget. Definitely get pre-qualified for the loan.
3. Failure to Factor in the Cost of Insurance
When our vehicles get older, our auto insurance policy gets cheaper as well (or it should). Some people who walk out of their local dealership get sticker shock when they call their insurance agent after their new car purchase. Once you have almost completed your financing and budget research, don’t forget to call your insurance agent and find out how much that sweet new ride is going to cost to insure. As always, shop around and don’t be afraid to find a trusted auto insurance agency with a better price.
4. Choosing the Same Model Again
You may have a vehicle you absolutely love, and you just want the same again. Take the time and research all of the major competitors in your present vehicle’s class as well as the new version of your present model. You may just find you can save money and find a vehicle you love just as much.
5. Failure to Look at Last Year’s New Model
Depending upon the time of year that you visit your local dealership, you might find that you can save thousands of dollars by simply purchasing last year’s model which is also brand new and sitting on the lot unsold.
6. Failure to Do a Test Drive
It can all sound so good on paper. All of the reviews of your target vehicle are glowing. You have it in your budget for the payments, and you have pre-qualified for the loan. Don’t forget to do the test drive before you sign anything. In fact, it is a good idea to test drive your top three vehicle choices at your local dealership. If the vehicle just doesn’t feel right to you, the last thing you want is to be stuck with it for the next several years.
Have fun purchasing your new vehicle, but save yourself many headaches, money, and time by doing your vehicle, loan, and budget research. Spend some time with the test drive as well. Your new vehicle purchase choices will remain with you for the next several years.
