The North American automotive industry was valued at $713.07 billion in 2021. And it’s predicted to maintain steady growth over the next few years.
With such a booming industry, it means there’s a good chance you’re going to buy a car at some point in the future. If that’s the case, then there are some common car purchasing errors you’ll want to watch out for.
Keep reading to learn about eight common car buying errors, and how to avoid them!
- Only Looking at One Dealership
Your local car dealership is not the only place you’ll find cars! It’s important to shop around as much as possible. This means you look at lots of different dealerships and private sellers.
But don’t discount the dealerships entirely. Dealerships are a good starting point when you’re comparing car prices. They usually include warranties, service plans, and perks.
Consider your needs and your budget, and shop around as much as possible. This is how you’ll find a deal that works for you.
- Not Doing Your Research
It’s not only about being patient and waiting for the right deal. You’ve got to do lots of research to know exactly what you’re looking for in a car, and what your total budget is.
There are many types of cars that might suit your needs, so it’s important not to limit yourself to only one make or model. Think about how many people need to comfortably fit in the car, how much storage space you need, and how much gas the car uses.
Once you know exactly what your basic requirements are, you then look at your budget. There are often extra costs involved when buying a car, especially from dealerships, so it’s helpful to budget for those too.
You’ll have to pay for the car itself, as well as registration or ownership transfer fees, warranties, service plans, inspections, and more. It’s even more if you want to invest in extended warranty plans. Click to learn more about the Honda extended warranty cost.
- Only Considering New Cars
Lots of people are only willing to look at new cars because they think used cars will have too many problems so they’re not worth it. Others only consider used cars because new ones are always too expensive. Neither of these is entirely true.
It’s important to shop around between new vs. used cars. Depending on your budget, a new car that’s being sold at a good deal might be a better investment. But there are also some really good quality used cars which will be lifesavers for your budget.
- Not Testing the Car
Test driving cars is one of the most important things you can do. You’ve got to make sure you see how you fit into the car, how it feels to drive, and how the car runs.
Test drives let you feel out the car and are a great chance to spot any problems you might run into before buying it.
- Not Getting an Inspection
If you do take the used car route, it’s important to get an inspection. Some sellers overvalue the car or don’t mention things that make you less likely to buy it.
Save yourself from a potential problem by getting a second opinion before you commit to the car.
- Giving in to Sales Pressure
Some salespeople are very good at their jobs, and it can get overwhelming when they’re trying to close the sale. They can add pressure by either creating an offer that seems too good to be true or by saying the deal won’t be available for long. Both of these approaches are known to fluster customers, and they panic about losing out so they commit to buying the car.
Try to avoid this sales pressure as much as possible. An easy way to do this is to focus on the car, not the deal. Salespeople throw in all these extra benefits which make the car cost more, and while those benefits are nice, you don’t need all of them.
Remember to go back to your budget. Tell the salespeople you need more time if you’re not sure. If they realize their pressure might make you walk away, then they’ll probably take it down. They’d rather the sale than lose a customer.
- Afraid of Negotiating
The price of cars is often dictated by market value. This means the people selling the cars have a lot of room to negotiate. They want to sell the car at the highest possible value, but a sale is a sale.
This means you’ve got room to negotiate. Ask sellers where they’re getting prices from, and if there’s room to bring prices down. Most of the time, the seller can figure something out.
- Unaware of Your Current Car’s Value
If you already have a car that you’re planning on selling, you need a good sense of how much money you can get from it. Selling your current car is going to contribute a big portion to the purchasing of your new car.
But if you’ve misestimated how much your car is worth, it can leave you having to pay a lot more than you expected. Save yourself from an unpleasant surprise by getting an accurate estimate of the amount you’ll get for your current car before buying a new one.
Avoid These Common Car Purchasing Errors
Now that you know how to avoid these common car purchasing errors, you can rest assured you’re going to find a great deal.
Ultimately, you’ve got to spend time doing the research to find the car that will work for you. Your budget and needs will be the biggest factors influencing this. And now you’re all set to start the journey to finding your dream car!
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