Five Common Car Purchasing Errors

Five Common Car Purchasing Errors

When learning to drive, many people practice in empty car lots or on country roads. When you're buying a car, you don't get to practice. You only get one shot-so be aware of five common car purchasing errors.

The problem with buying a new car is that these four-wheeled babies are too much fun. Cars are sleek, stylish, and can truly be a reflection of your personality. Since the best ones cost the most money, it's easy to find yourself way in over your head on a monthly basis paying for what you love.

Avoid making the wrong decisions by steering clear of five common car purchasing mistakes:

1. Buying based on wants, not needs

It's too easy to buy the hottest-looking car on the lot. To avoid this temptation, spend a few rational moments writing down how you'll actually use the car. Consider how many miles you drive, and the weather conditions that your car needs to be equipped for. This exercise should help you determine what kind of car would be ideal for you.

2. Budget based only on monthly payment

Put together a budget to decide exactly how much you want to spend on a monthly basis. Don't stop there-it's all too easy for a finance manager to put together an auto loan package that gets you a low auto loan payment. The problem is that you'll be making payments well past the day that your sleek car isn't so sleek anymore. Instead, decide how much money you're willing to spend overall, and how soon you'd like to pay it off.

3. Start talking trade-ins right away

If you want to trade-in your car, don't tell your sales person until after you've negotiated the price of the new car. If you let them work it into the deal earlier, your final numbers could be skewed against you.

4. Not investigating car dealer

Do as much research on the car dealer as you do on the car. Find out if any of your friends or family has done business with the dealer you have in mind. Check with the Better Business Bureau, as well.

5. Sticking with one dealer's loan

If you've got the right dealer and the right car picked out, take a few extra days and make sure that you've got the right car loan. Shop around for the best rates and fees, and go with a reputable lender. It need not be the dealer selling you the car.

You can practice the process of buying cars as much as you want, although it may get costly over time. A more budget-friendly alternative is to take your time, and carefully assess each move that you make. Keep this list of common errors handy, and review them throughout the process. Take it slowly and do it right. In the end, you'll have the car you need at a price you'll love. Driving the wheels you want at the deals you want will make for smoother, happier driving.