Most people buying their first car, new or used, will make mistakes that can end up costing them a bunch of money, but it’s a crying shame that even people buying their fourth or fifth car will continue to make these same mistakes. The simple fact is that they continue to do most of the things the same way, when in fact, they should be making some changes that will arm them with the information and tools they need in order to get the best deal possible. The first, and the biggest, mistake that most people make is going to the dealership without financing. Yeah, the dealership may be advertising 0% interest, but what the small print says or the “talk so fast you can’t understand it disclaimer” says is that you have to have excellent credit and that you may have to have a certain amount in the form of a down payment or trade-in to get that fantastic 0% loan. So, go in prepared. Check with your bank or compare rates on websites that offer financing. In fact, join a credit union and find out what kind of rate you can get through them. Obtain preapproval BEFORE you go to the dealership. Some places will even issue you a “no obligation” check to pay for the car. Then, if the dealership cannot offer you comparable financing or beat the deal you can get somewhere else, you will already have your financing in place and can rest assured that you are getting the best deal possible
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Next, never, EVER buy a used car without researching it first. Not only should you be getting a copy of the vehicle history report, you should have your mechanic, if you have one, check it out. Even having a family member that knows a bit about cars look at it is better than having no one look at it. You can also go to your local AutoZone and ask them to run an electronic scan on it. Most will do it for free and if there is anything wrong with any of the major systems in the car, you will know in advance and can either can the deal or negotiate a lower price. If your local automobile supply shop doesn’t offer this service, most places that repair vehicles will be willing to do it for a nominal fee, well worth the cost as opposed to buying a lemon with a lot of problems or a vehicle that breaks down after you’ve signed the papers and driven off the lot.
Also, always check your local dealerships to see if they have an internet sales department. Unlike the “real” salespeople on the lot, these people work on volume, not on commission. Yes, it is more impersonal, but that is what you want when buying a car. Being “friends” with the salesperson is not necessarily a good thing. It’s amazing what they can talk you into when you are face-to-face. Instead, negotiate online, which also makes it easier. It’s just like chatting in a chat room with someone you don’t know. You can say things or do things you wouldn’t normally do when faced with the same situation “in person”. Being online and anonymous empowers you in unexpected ways. You can even go to the dealership and pick the car out without giving them any information about yourself and then go home and go online if you wish. Once you’ve struck the online deal, ask if they can deliver it to your home. Most will go that extra mile and that means that you will not have to go to the dealership where they have the opportunity to sell you all kinds of extras and rewrite your contract. In fact, you can make your offer contingent on free delivery.
Speaking of extras, there are all kinds of them that the salesperson will try to add in, with you none the wiser, or with your express approval. Most sets of car mats, for example, will cost you at least $70.00 and probably quite a bit more. You can buy the same mats at an auto supply store for half the cost, so don’t fall for it. Fabric protection and VIN etching, undercoating and extended warranties, upgraded sound systems…these extras will cost you hundreds of dollars on top of the price of the car. Remember that you will be paying interest on these extras for the life of the loan or until you trade the car in.
Most people may want to consider buying the extended warranty, especially if buying a fleet or pre-owned vehicle, and if planning on keeping the vehicle for a long time. But negotiate that cost ahead of time, not when the time comes to sign the papers. In fact, do some research in advance. There are a number of quality, recommended warranty service sites, such as CARCHEX, WarrantyDirect and NationWarranty. ALWAYS check with the Better Business Bureau and look for online complaints or recommendations before entering into a contract with a warranty service company though. There are quite a few who look like a good deal who are shysters in disguise. Also, be aware that some extended warranties that the dealership will sell you require that you have the work done at that particular dealership. What happens if they go out of business? You’re left paying for a warranty and also can’t get the necessary repairs done. This is one document that you want to read really well and ask specific questions or ask for explanations about. If you are buying an older model automobile, WarrantyDirect has a warranty for older, higher mileage vehicles also, so don’t think that you are out of luck if buying a used vehicle.
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