3 Common Mistakes And Pitfalls Buyers Face When Buying A Car

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Buying a vehicle, may it be brand-new or pre-owned, can be an upsetting and stressful experience. The amount of paperwork that needs close attention, completing the needed pre-requisites, and a lot of things are at stake. And during the course of the process, you are bound to encounter mistakes and pitfalls along the way. As a way to ensure people avoid committing them, as well as to provide the knowledge to identify them we have compiled a few of the most common mistakes people encounter when buying a vehicle. Take a look for yourself.

Mistake 1 Buying a vehicle that is Brand-New rather than a Pre-Owned

New vehicles lose about $2,500 to $6000 in value the instant the vehicle leaves the dealerships car lot. If you are acquiring your next vehicle by the use of an auto loan with a small or virtually no down payment at all, then this kind of devaluation translates negatively since it means you just wasted money. That new car scent and the new leather feel are certainly appealing, but spending thousands of dollars to procure it simply not worth it. There are a lot of slightly used and pre-owned models out there ready and waiting. And if you are in luck, you can find the same model of the vehicle that is only a year older but is drastically less expensive and can have the same warranty coverage as provided to the newer model. Provided that used car loan rates may be slightly higher by 4-6 percent, the amount of savings is still a bigger win for your pocket.

Mistake 2 Not performing an extensive research online prior to the purchase

The advancement of technology allowed people to acquire vital information in virtually no time at all. Thanks to it, everything about anything can be searched, GOOGLEd, or BINGed without any effort at all. But most car buyers have not used this to their advantage at all. A ton of information that is vital into a car buyer, like the Vehicle Identification Number (VIN), model and make of the vehicle, even current owners of the same models opinion about the vehicle is just a click away. If done properly, a car buyer can check and choose the most appropriate vehicle for their needs, fit their taste, not to mention their budgets as well.

Mistake 3 Focusing on the vehicles monthly payments, rather than the vehicles purchase price

The standard car dealers common tactic to ensure the dealership gets the upper hand on any car deal is to talk to the customer about the cars costs in terms like the amount of monthly payments rather on the actual price of the car itself. Using confusing and often misleading details, the dealer will more likely suggest the option with the lowest monthly payments tied with longest car loan term. So it is recommended that even before you think of setting one foot within a car dealership, it is best to be pre-approved by a lending institution - like a bank or credit union so that you got your details set and your somewhat protected from the tricks the dealer can whip up.