Unlocking a Seamless Purchase: 29 Common Mistakes to Steer Clear of When Buying a New Car
Posted on May 13, 2021
If you're gearing up to purchase a new car, you've probably scoured the internet for tips and tricks to make the process smoother. While there's a wealth of information on the do's, what about the don'ts?
In this blog post, we'll shed light on 30 possible car buying mistakes that car buyers often make and offer valuable insights to help you steer clear of these pitfalls and discover a hassle-free purchase.
29 Mistakes to Avoid When Buying a New Car
Avoid common missteps with these 30 mistakes to steer clear of when purchasing your next vehicle.
1. Avoiding The Price Comparison Pitfall
Don't limit yourself to just one dealership when shopping for a car. Prices can differ between dealerships since they set their own prices. After finding a car you like, take the opportunity to shop around.
Use your phone to check bottom-line prices at various dealerships, ensuring you compare the same model, trim, and extras. Take into consideration that add-ons like sidesteps and tonneau covers can add to the price, but they also add to the value.
2. Overlooking Your Trade-in's Worth
Don't overlook your trade-in value when buying a new car. Instead of relying solely on the dealership to determine its worth, take the time to research its value using guides available online.
Keep in mind that dealerships won't offer full value as there has to be some profit there for them too, but the price should still be reasonable. Consider selling the car yourself for the potential of getting its full value, although it requires time, energy, and know-how.
3. Watch Out for Hidden Fees on Your Bill of Sale
When purchasing a vehicle, be vigilant about hidden fees that may appear on the bill of sale if they weren't disclosed earlier. Some dealers may add unnecessary or overpriced charges to inflate the selling price. For instance, they might charge for a CarFax report when buying a new car, or for services you don’t require. Always review your bill of sale carefully to ensure all fees are legitimate and previously disclosed.
4. Fixating on Monthly Payment Figures
There’s no question that there are different ways to view the cost of a car. If your monthly budget is tight, there are ways to try to bring that payment down and make it more affordable. However, beware of dealers that use this tactic to add on pricy extended warranties or insurance packages that you don’t really need. Ensure that you know about the total cost of the car, and the cost of borrowing which is what it will cost with interest over the years.
5. Forgetting to Establish a Budget
Create a monthly household budget that covers all your income and expenses. Aim for your monthly bills, including potential car payments, to stay within 50% of your income. Don't forget to factor in loan interest, taxes, and title costs for accurate calculations.
6. Hastening Through the Purchase Process
If you rush through the process or allow the dealership to pressure you into a hurried decision, the likelihood of making the optimal choice and securing the best deal diminishes rapidly.
Taking the necessary time to thoroughly consider your options, conduct research, and assess your needs ensures a more informed and advantageous car-buying experience.
7. Exhibiting Rudeness Towards Salespersons
Salespeople play a crucial role in your car-buying journey, even if it might not seem that way. They can guide you to the perfect model, and suggest the right trim.
When you're rude to a salesperson or treat them negatively, there's a chance they might not be as helpful in return.
8. Neglecting the Resale Value Factor
Different models have varying resale values, so you must include this in your research. Choosing a car that retains an additional 10% of its value when you plan to trade up can translate to substantial savings, potentially putting thousands of dollars in your pocket. The Jeep Wrangler is an example of a vehicle that has phenomenal resale value. Therefore, considering resale value is a smart move for future financial benefits.
9. Overlooking Hidden Costs
Hidden costs, such as extended warranties and specialized insurance packages, often get tacked onto the final car price post-decision. It's crucial to factor these additional expenses into your budget when planning your purchase. Make sure that you have a discussion about these options and let the sales person know if you are interested or not in those features.
10. Splurging on Unnecessary Extras
If you find yourself uninterested in additions like a sunroof, alloy wheels, or tinted windows, scrutinize the sticker for these elements. Communicate your preference to the salesperson, specifying that you prefer a model without these optional extras that can significantly inflate the overall cost.
11. Landing the Wrong Car Choice
Before proceeding into the car-buying process, you must introspect and identify your specific needs, both current and future. Consider factors such as your driving habits—whether predominantly in the city or for long road trips—potential family size, and the challenges posed by your local climate.
12. Neglecting Essential Car Research
Not digging into car research can lead to unexpected problems down the road. Check reviews, take your preferred models for a test drive, and consult a mechanic about common issues with your chosen model year.
Skipping this step means you might encounter avoidable troubles that could have been spotted with a little upfront investigation.
13. Disregarding Potential Deals
Car dealerships frequently roll out enticing deals, be it during a model year-end clearance, or a special holiday promotion, or an anniversary event like the CarHub Anniversary Sale that features huge discounts every July, or our Boxing Week event. By strategizing your buying timeline, you can ensure that you're in the market at the opportune moment to take full advantage of these offers.
14. Exploring Lease Considerations
Deciding whether to lease a car can be a wise choice in certain scenarios, but it may not be the best option in others. Your decision to buy or lease should be based on your individual circumstances. Before visiting the dealership, thoroughly examine the advantages and disadvantages of each option.
15. Avoiding the Walk-Away Option
If something feels off or you haven't thoroughly researched a loan, add-on, or aspect of the car you want to buy, don't hesitate to step away. It doesn't mean completely abandoning the deal but be prepared to leave the dealership without making an immediate purchase.
16. Overemphasizing Brand Names
When choosing a car, it's tempting to be swayed by prestigious brand names that make you feel good. However, it's wiser to prioritize technical aspects like durability and suitability for your needs. Luxury cars might convey a certain image, but sometimes opting for "lesser" brands makes more sense and can save you money.
17. Succumbing to Purchase Pressure
Making a rushed car purchase, whether due to a malfunctioning vehicle or a looming deadline, can lead to poor decisions. Taking the time to research, budget, and approach the buying process rationally increases the likelihood of making a sound choice.
Avoid succumbing to pressure, whether from salesmen or self-imposed deadlines, and prioritize a thoughtful car-buying experience for better outcomes.
18. Neglecting Insurance Planning
While acquiring a new car is a thrilling experience, some overlook a crucial aspect: insurance. It's easy to forget that specific insurance packages may be necessary for your new vehicle. Contact your insurance agent and ask them to give you the cost for insuring the vehicles you’re interested in.
Be prepared to adjust your budget for potentially higher premiums associated with the upgraded car. Failing to plan for these insurance changes may lead to unexpected surprises either on the day of purchase or when you receive your first bill.
19. Deviating from the Planned Course
Once you've invested time in crafting a budget, researching a car, finding one at the ideal price, and selecting the best loan, the final step is straightforward – stick to the plan.
Stay disciplined during your shopping process and consider bringing a friend along for added accountability.
20. Waiving the Crucial Test Drive
Skipping the test drive is a mistake—around 20 percent of buyers overlook this crucial step. Regardless of flashy ads, the car you're eyeing might have surprises. Experts recommend driving seven cars if you're a first-time buyer and four if you've owned before.
21. Yielding Too Easily to Model Allure
Don't easily get swayed by a specific model's appeal. Let facts guide your decision, focusing on reviews, reliability, ratings, safety, and price. Prioritize your research based on meeting your needs rather than fulfilling fantasies. Keep emotions in check during transactions.
22. Not Prioritizing Essential Vehicle Needs
Identify your genuine car requirements without getting sidetracked. Are you prioritizing fuel efficiency for long-distance travel? Do you need ample interior space for a large family? Perhaps extra trunk space is vital for transporting sports gear. Create a straightforward list based on your lifestyle priorities and stick to satisfying those needs.
23. Focusing More on the Deal than the Car
Don't get too caught up in the latest car deals – while tempting, they're just part of the picture. Automakers frequently roll out special offers, but it's crucial to prioritize the quality of the vehicle itself. Look beyond the deals and focus on ratings, reviews, and accessories. Remember, the car is what matters most for the next few years.
24. Neglecting Current Car Value Research
Make sure to check your car's value before making any decisions. You can easily find Kelley Blue Book values online, whether you're looking to trade it in or sell it yourself. Selling it on your own usually gets you a better deal.
25. Accepting Dealer Financing Without Credit Union Consultation
While completing the entire transaction at one location may be tempting, establishing the payment process is too vital to overlook. Consulting an experienced credit union representative could lead to significant savings over the life of the loan.
Avoid these common mistakes when buying first car to enhance your car-buying experience and ensure you don't regret missing out on better options and potentially paying a higher price.
26. Purchasing on the First Visit
When visiting a dealership for the first time, focus on exploring and test-driving the cars without committing to a purchase. Inform the dealer that you're in the research phase and not making a buying decision that day.
27. Underestimating Total Ownership Costs
When you're about to buy a new car, your Emotional Brain is already sold, envisioning the joy of being behind the wheel. On the flip side, your Practical Brain raises questions about the deal, reliability, mileage, and resale value.
28. Setting Unrealistic Expectations
Having too many choices can make us unhappy. Psychologist Barry Schwartz explains that in a wealthy society, the abundance of options can cause stress. We often feel pressured to make perfect choices, leading to anxiety when deciding and sadness when we feel we've chosen poorly.
29. Falling for Love at First Sight
New car buyers often make the mistake of falling for a car based on looks or features they love, without considering their actual needs. While a sports car may seem appealing, it might not be practical for daily commuting or family use.
Ready for Your New Car? Secure One Now Only at CarHub
As one of the most trusted dealerships in Canada, CarHub is a safe place to go when buying a car. We work under the banner of CarHub Promises that includes the promise to maintain honesty, transparency, and a hassle-free environment for our community.
Also, don't forget to read our guide for first time car buyers. If you still have questions for our Carhub Sales team, we’re here to help. You can make an appointment with one of our friendly Product Advisors today. We look forward to meeting you soon!