15 Top Car Buying Mistakes

Buying a car is an exciting time. You'll want to make sure that you choose wisely and get the right vehicle for your needs, but it can be easy to get swept up in the excitement of buying a new car and forget some of the important things. We've put together a list of mistakes people often make when buying a car so you can avoid them

#1. Not Focusing on the Total Cost of Ownership

The total cost of ownership (TCO) is the total cost of a car over its lifetime. It includes the purchase price, fuel, insurance, maintenance and repairs, and resale value.

The TCO should be compared to other cars in your price range that have similar features and are available in your area.

Car Dealer

#2. Not Paying Attention to Fuel Economy

It's really important to pay attention to fuel economy when you're buying a car. If you're driving a lot, your vehicle will cost you more than just the price of gas. To calculate how much that fuel is going to cost you, use this formula: [(price per gallon x number of miles driven) + maintenance costs] ÷ (gas mileage x current market price for gas).

Then write down your new total in your notebook and update it every time you fill up or change the oil in your car. You can also find out how much the average person pays per mile by looking at the EPA's website here: https://www.fueleconomy.gov/.

Once you know how much it costs per mile to run your vehicle, it's time to figure out how many miles per gallon each type of car gets on average so that if there are two vehicles with similar prices but different gas milage ratings (like 18 mpg vs 26 mpg), then go with whichever one gets better fuel economy.

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#3. Buying a Car After a Test Drive

You should test drive the car in different conditions. Drive it on a highway and in the city, at night and during the day, during rain or snow.

Stay alert and make sure you don't get too comfortable during the test drive. For example, if you're going to be driving your next car up the mountain every day to get home from work, make sure that you find out how well it handles on steep roads before making a purchase!

Test driving for 15 minutes is not enough—you want to make sure that all aspects of driving are covered so that there are no surprises when buying your new vehicle.

#4. Ignoring Unusual Noises or Smells

Buying a car is a big decision. It’s also a big investment, so it makes sense that you want to make sure the vehicle you choose is right for your needs.

But before you rush out and buy the first car that catches your eye, make sure you don’t fall into any of these common traps:

Ignoring unusual noises or smells. While not every new sound or smell means something serious is wrong with your vehicle, it can sometimes indicate an issue that should be addressed as soon as possible.

Read Car Reviews

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#5. Not Checking Out the Dealer's Reviews

While you're looking for a dealer, make sure to check out their reviews on sites like Yelp and Google. This can help you find out how well the dealership treats its customers. You should also look at reviews from people who have bought cars from that dealership.

#6. Assuming You Have to Make a Large Down Payment

You may be surprised to learn that most car buyers don't make a large down payment when they buy their cars. This is because they don’t realize the benefits of putting one down.

A down payment is an amount you pay upfront, before the car is yours. The more money you put down, the lower your monthly payments will be.

That's why it's important to consider all your options when purchasing a vehicle and find one that works for your budget before signing any contracts or writing checks.

#7. Not Checking Your Credit Score Beforehand

Your credit score is a number that represents the risk you pose to lenders. It can affect your ability to get a loan or other credit, such as a mortgage and car loan.

Your credit score is calculated by a formula that uses information in your credit report. This includes late payments, balances owed on loans and cards, new accounts opened, amounts owed on those accounts over time, etc.

The higher your score, the better it looks to lenders when they look into your financial picture before extending you more money or approving an application for something like a mortgage or auto loan.

For best results when checking your own report: Go through each section listed above (marked with red arrows) one at a time using these tips:

Check all three reports once every four months (every 24 months). That's because some companies only update their data every 24 months instead of monthly or quarterly like others do; so if there's any inaccurate information on one report from two years ago but not another one -- it will show up on all three after two years have passed.

Car Deals

#8. Thinking That All the Best Deals Are at the End of the Month, Quarter or Year

While it's true that there are some promotional offerings that run periodically and end at the end of a specified time period (such as "July Sale" or "Back to School"), other deals are available all year long.

There are also times when dealerships need to clear out old inventory to make room for new models and will offer incentives to move their old stock.

In addition, dealers don't always honor every advertised deal and often try to use them as leverage in negotiations with buyers who aren't convinced by the price they've been offered.

#9. Going With the Monthly Payment Instead of Negotiating for the Total Price

The second mistake is to go with the monthly payment instead of negotiating for the total price. When you work with a dealer, you’re likely to hear about their financing options and be tempted by the lower monthly payments they offer.

But when it comes time to sign on the dotted line, you may find that some extra fees have been added onto your loan amount or it’s even more than you expected.

When negotiating for a new car, it's important to think about what your total cost will be over time.

This includes not only how much you're going to pay each month but also any taxes and fees associated with buying or leasing your new ride.

While dealers can't control these costs exactly (although some do try), they can help ensure that customers get a fair deal when purchasing vehicles from them by offering competitive rates on both purchase prices and financing options like interest rates, down payments and trade-in values -- all factors that affect how much money customers end up spending.

#10. Failing to Take Weather and Terrain Into Account

If you live in a cold climate, you will need to buy a car that can handle snow and ice.
If your area gets lots of rain, look for a car with good windshield wipers and tires.

#11. Being Too Optimistic About Future Income Growth

If you're not earning enough money now, it's unlikely that your income will increase drastically in the near future. You need to be realistic about what your current or future earnings are, and set a budget accordingly. You also need to consider any expenses that might decrease, such as children leaving home, or a house payment being eliminated (if you rent).

You should get in touch with an experienced financial advisor who can help you determine how much money is needed for retirement and how much of your salary needs to go toward retirement savings.

Make sure that when shopping for a car loan, you take into account all of the costs involved with owning a vehicle. including registration fees and insurance premiums -- as well as any other debts you may have accumulated while paying off student loans or credit cards in college.

Take Your Time

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#12. Rushing Into a Decisions Because of Salesperson Pressure

Rushing into a decision because of emotions or pressure from a salesperson is another major mistake. You should take your time to think about it, especially if you're not used to buying cars. Don't make a decision in the heat of the moment.

When buying a car, don't let your emotions get the better of you either; this could cause you to lose out on important features that would have made things easier for you later on down the road.

#13. Failing to Include Insurance, Maintenance, Fuel and Depreciation in Your Calculations

If you’re going to buy a car, you need to know exactly how much it will cost. That means not only the purchase price but also insurance and maintenance costs, fuel costs and depreciation.

You should also include interest on your loan in your calculations as well as any fees related to buying or selling the car (title transfer fees).

#14. Not Considering Your Long-Term Costs and Resale Value

When you're in the market for a new car, it's easy to get caught up in the excitement of finding that perfect model, color and trim level. But once you drive it off the lot, your attention should shift from what's happening now to what will happen next.

Your vehicle is an investment -- not just for now but also for later on down the road. Will your car hold its value well? Or does it depreciate like a runaway roller coaster?

Will its regular maintenance costs be manageable? And how much are repairs likely to cost if something goes wrong with this particular model (even if it hasn't happened yet)?

Making smart choices about these factors can make all the difference between getting what you want now while still being able to afford everything else later on down the road.

Drive Off With Satisfaction

#15. Assuming That New Cars are Totally Reliable and Used Cars are Always a Gamble

You should also be aware that new cars are not always more reliable than used ones. In fact, the opposite is often true.

For example, Consumer Reports says that while new cars tend to have fewer problems in their first years of ownership, they tend to suffer from more problems throughout their lives compared to even slightly older used vehicles.

That's because manufacturers use newer parts that are designed for fewer miles on them and don't last as long as older parts will -- and those newer parts cost a lot less money for car companies to produce. The result? A higher cost of maintenance over time than an older vehicle with many miles on its odometer would have.

Plus, new cars depreciate faster than used cars do -- so if you're buying a car with cash instead of financing it through your bank or credit union, you're losing money every day until you sell off the vehicle at some point in the future.

There are lots of ways you can mess up a car purchase but there are also smart things you can do that will make it go easier or save money

When you're buying a car, there are lots of ways you can mess up. You can make poor choices or get tricked into paying more than the value of the car. But there are also smart things you can do that will make it go easier or save money.

Mistake 1: Buying without knowing how much money you have for your monthly payments and other expenses

A good rule of thumb is that if your total car payment (including interest) is going to be more than 10% of your gross income, don't buy this particular vehicle because it's probably not worth it in terms of long term costs when compared with other alternatives like public transportation or biking.

Conclusion

Buying a car is one of the biggest purchases you’ll make, but it doesn’t have to be a stressful one. The first step in buying a car is to check out your budget and think about what type of vehicle you need. Then, start looking at dealerships to get an idea of prices and compare different models before narrowing down your choice. Once you find the perfect vehicle, it’s time to negotiate with the dealer on price.

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