| Buying a new car is exciting to be sure, but it can also | | | | another common and expensive mistake. In fact, this is |
| be much more expensive than it really should be for | | | | an area that can cost you sometimes more than any |
| most people. If you aren't careful you can wind up | | | | other part of the deal. Dealers will always offer to |
| spending thousands more than someone else for the | | | | finance a new car for you and they will try to do their |
| same kind of deal. Let's review the top 5 new car | | | | best to convince you that buying the car through their |
| buying mistakes that many people make and see how | | | | financing arrangements is best, but keep in mind that |
| to avoid them. | | | | they don't sell car loans for free. Somehow they are |
| 1. Probably the first thing that costs most car buyers | | | | making money on that loan at your expense. So why |
| money is not doing enough advance research about | | | | not line up your own financing in advance with one of |
| new cars before they start the shopping process. You | | | | the online auto lenders and then when it comes time to |
| may think that you will learn a lot by just visiting the | | | | buy the car you want, make a comparison of which |
| dealership and asking the salespeople about new | | | | loan is truly best, the dealer's or the one you already |
| vehicles, but you will only learn what they want you to | | | | have arranged. |
| know that way. If you want unbiased information that | | | | 4. Using the sticker price as the starting point for price |
| you can trust, you need to do some online research or | | | | negotiations is costly. These days, a lot more is known |
| read Consumer Reports instead. You can find out | | | | about what a dealer actually pays the manufacturer |
| which vehicles are rated highest for reliability and other | | | | for each vehicle and the sticker price is not the place |
| factors, as well as get specific pricing information that | | | | to start at. Consumer Reports often lists the actual |
| will help guide you in price negotiations. By doing this | | | | wholesale cost of the vehicle and then you can add |
| advance research you will know what you want and | | | | on about %4-%8 to calculate a fair purchase price for |
| how much you are willing to pay for it. | | | | that vehicle. |
| 2. Another common mistake is letting emotions | | | | 5. Dealers also love to load up vehicles with extras |
| dominate the buying process. Admittedly, it's hard to | | | | that appear to be valuable, but are way over-priced. |
| keep emotions out of it altogether, and actually you | | | | They then include these into the overall cost of the car |
| should factor them into the purchase, but they should | | | | so it's only a tiny amount of your monthly payment. But |
| not overshadow good sense either. Remember that | | | | if you added up the cost of extras and the interest |
| as soon as you allow emotion to cloud your decision | | | | charged on them they could be significantly more than |
| making, you are playing into the hands of the dealer | | | | you would pay if you simply paid to have those extras |
| and you will most likely be willing to pay more just to | | | | installed on your own after the purchase. |
| get your hands on that shiny new car that you will | | | | If you avoid these top 5 common new car buying |
| have to keep paying more for when it's initial allure has | | | | mistakes you will no doubt be able to save lots of |
| worn off. | | | | money on your next new car purchase and feel good |
| 3. Not arranging for auto financing in advance is | | | | about the deal that you made. |