When we shop for a vehicle, whether it’s new or used, we often tend to focus on the car’s price and not so much on its financing. The same is true for other things, and we may not even be aware that we are making a crucial mistake when we are buying a vehicle – until it’s too late. If you focus or concentrate too much on the price and trying to avoid getting ‘ripped off’ you may find out in the end that the perfect car deal you got isn’t so perfect after all. So how can you avoid getting a less-than-perfect deal when you are purchasing a new or used car? Here are the top mistakes to avoid.
- Focusing too much on the car’s price
The fact is that the price of the car is only a single element of what it means to buy a vehicle. We often ask ourselves whether we got a good deal or not, especially when it comes to the year, model, and make we purchased. In other words, we want to make sure that we didn’t pay too much compared to the average individual for that car we purchased. But there’s one thing that’s more crucial than the car’s price: the fact that you are buying something that does not take too much of your budget. In other words, you have to make sure that the car you are buying is something you can really afford, as Young Automotive, one of the most respected used car dealerships in Utah, will confirm. For instance, should you think about a car that’s about two years old rather than a brand new make and model? This will probably help you save more than you can negotiate off a new vehicle. Of course, if you have the means to drive off in an entirely new vehicle, then go for it – but if you don’t, don’t be afraid to compromise to get something you can realistically afford.
- Ignoring the terms of financing
It doesn’t make sense to argue with a car salesman for hours just to get a $500 discount on the price when you are financing the vehicle with no deposit at 6% for five years, at the cost of more than $2000. This is another mistake you want to avoid: ignoring the terms of financing just because we are too focused on the price. But many people do this because we think that the $500 in savings we got is tangible, while the $2000 we are paying for financing isn’t tangible. The wrong financing or loan arrangement can quickly add up and will often end up costing you more than the discount you initially had. If you can negotiate the interest rate instead of trying to get a discount on the price, this could mean more savings for you in the long run. It’s best to come up with a down payment for a car instead of going for a no-deposit deal because this will benefit you in the end as well.
Your best bet, of course, would be to pay for a car with cash – but if you don’t have this, shop around for the best rates. Be conservative in your borrowing, and stick with a loan which doesn’t take more than 36 months. If you can, try to put down at least 20% of the car’s price as well.