| Lots of people buy a new car, and then regret their | | | | 6. Talking trade-in during negotiations for the new car |
| purchase soon thereafter. If you don't take a lot of | | | | purchase |
| precautions, you will be a car buying victim instead of a | | | | Don't include trade-in for your old car in the new car |
| smart buyer. So, here are the top ten mistakes that | | | | deal. It's too easy for the car dealer to structure your |
| buyers make when shopping for a new car. These | | | | deal to look like you're getting much more for your |
| mistakes are not listed in order of importance...but don't | | | | trade-in. Make your car deal apart from any trade-in |
| miss the message in every mistake. | | | | consideration. Then, get the trade-in offer and deduct it |
| 1. Impulse buying | | | | from the total. Also give serious consideration to selling |
| An impulse is an emotion. The worst reason to buy a | | | | your old car yourself. You'll get much more money for |
| car is emotion. Car sales people are taught that they | | | | your old car. |
| must try everything they can to sell you a car during | | | | 7. Dealer financing |
| your first visit. Statistically, they know that if they don't, | | | | This is a mine field, and the dealers have set the mines |
| they won't get a second chance. If you pull into a | | | | in your path. The most dangerous place in a dealership |
| dealer lot to just "kick a few tires," but you have not | | | | is the Finance and Insurance (F&I) office. The F&I |
| sworn to yourself that you will not buy on that visit, | | | | office accounts for a big percentage of the total |
| you're doomed. Don't say things like "I love this car" or | | | | profits of a dealership. You must be wary of every |
| "I've got to have this car." Don't get your emotions | | | | offer here...financing, warranty, insurances like life |
| involved in this buying decision. If you're talking too | | | | insurance that pays off your loan balance. I |
| much, the car salesman will read that as buying signals. | | | | recommend that you decline everything offered from |
| And salesmen are much better at clubbing you with | | | | an F&I office except a low interest rate on a loan of |
| your own buying signals than you are at resisting them. | | | | no more than 36 months. |
| Tons of people make impulse car purchases. You | | | | 8. Not buying at the end of the month and end of the |
| cannot do your research and wise shopping if you | | | | year. |
| make an impulse buy. | | | | At the end of the month...any month...the salesmen and |
| 2. Lack of research | | | | dealership are trying to maximize their bonuses and |
| Goes hand in hand with an impulse buy. You need to | | | | incomes. You'll get your best deals if you buy in the |
| go online and research about cars, including:a. safetyb. | | | | last couple days of the month. The same goes for |
| recallsc. resale valued. maintenance and repairse. | | | | end-of-year purchases. Dealerships are desperately |
| range of car prices for the make and model you want | | | | trying to get rid of last year's models, and finish the |
| Research will give you the information you need to | | | | year strongly. So, when's the absolute best time to buy |
| make an informed decision. | | | | a car? The last couple of days in December of any |
| 3. Unrealistic about your car needs | | | | year. You can hardly lose if you're a smart buyer. |
| Many car shoppers grossly overestimate their needs. | | | | 9. Leasing a car |
| Instead of buying a car that reflects their actual driving | | | | Do you know why you see so many auto ads on TV |
| experience, they buy a vehicle that feeds their future | | | | that feature low lease payments? Because the car |
| plans or perceived future needs. For instance, a buyer | | | | companies and dealers make a TON of money on a |
| who plans to own a boat and trailer may buy an SUV | | | | lease...far more then when they just sell a car. The |
| or heavy pickup. But he does not own the boat YET. | | | | lease agreement you sign is written totally in favor of |
| Overall, it's best to buy a vehicle for your present | | | | the lease company. You never own the car, you only |
| needs, not your future desires. | | | | rent it for a number of months. You are responsible for |
| 4. Not calculating the true cost of a hybrid | | | | maintenance and insuring the car. Plus, your lease limits |
| Hybrid vehicles, like the Prius, are priced far above a | | | | you to a certain maximum number of miles driven. If |
| regular gas or diesel. When you subtract the cost of | | | | you exceed the limits, the mileage penalties are |
| the regular vehicle from the hybrid price, you'll see the | | | | staggering. I've looked at leases every time I've bought |
| premium you pay for the hybrid. Now, will the fuel | | | | a car since the early 80s, and I've never once found a |
| savings pay for themselves over the number of | | | | scenario in which I could come out ahead with a lease. |
| months you own the vehicle? Hardly ever! Most times | | | | 10. New vs. Used. |
| you'll pay more overall for a hybrid vehicle. Gas and | | | | Most people do not need a brand new car. When you |
| diesel vehicles are becoming more and more efficient. | | | | buy a new car, you get hammered on depreciation in |
| Remember, over 50% of the vehicles in all of Europe | | | | the first year. Sometimes the value of your car drops |
| have diesel engines, and it's been that way for 50 | | | | as much as 20% the moment you drive your new ride |
| years. Must be a reason, eh? | | | | off the dealer lot. The car lots are jammed with |
| 5. Not shopping for car insurance before the car | | | | excellent used cars. You can save a bunch of money |
| purchase | | | | by buying a used car. But you won't know that for |
| Here's a big no-no. How many times have you called | | | | sure unless you do some research. Compare the |
| your insurance agent and gotten a quote on the car | | | | TOTAL cost of a new car versus the used car, |
| you WANT to buy? If you're upgrading from an | | | | including finance costs, maintenance and insurance. |
| average car to a different kind of car...like going from a | | | | Most times, the used car will win...even when dealers |
| Toyota Altima to a Corvette...the increase in insurance | | | | offer zero percent car loans. |
| premiums could make the new car purchase | | | | Buying cars are some of the largest, most expensive |
| unaffordable. Unfortunately, most people find this out | | | | purchases you'll ever make. You might only buy one |
| AFTER they buy that shiny new car. But just going | | | | house in your lifetime, but you'll likely buy many cars. |
| from an older car to a new car could drastically | | | | Become a smart buyer and you'll keep tens of |
| increase your insurance costs. What if your old car | | | | thousands of dollars in your pocket. |
| didn't have collision coverage, but your new car will? | | | | © Copyright 2010, Russell D. Longcore. Permission to |
| That could mean hundreds of dollars in added | | | | reprint in whole or in part is gladly granted, provided full |
| premiums. | | | | credit is given. |