Car Buying Tips: How To Avoid Falling Into Common Money Traps

LifeStyleFebruary 19, 2018

Buying a car hasn’t changed much over the years. Haggling over prices and taking advantage of dealership incentive programs are still must-haves. It always boils down to one thing: mastering the ancient art of negotiation. If you’re a good bargainer, you can save thousands of dollars, but if you fall into one of the several car-buying traps, you will pay much of what you should and could only afford.

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Winning the car-buying battle is never easy. It takes knowledge and experience to survive. Now, if you’ve really been wanting to visit auto showrooms to replace aging vehicles or buy a new one, better keep these practical car-buying tips in mind to get rid of those common buying mistakes and get the best deals ever.

Know the “Traditional” Salespeople and Their Very Tricky Sales Gimmicks

The stereotype car salesperson is persistent and aggressive. Every sales team is always willing to tell you everything, whatever it takes, just to close the deal to send us rolling out of the dealership in a new set of wheels.

Remember that you only need to spend a reasonable amount for your dream car, including other relative expenses such as maintenance costs and insurance payments, all these things should be in your budget, too. So don’t get pushed around by an aggressive salesperson. Knowing the “people” you’re dealing with can make a difference and can even let you save money, too.

Learn the Tricks of Effective Negotiation

The key here is to finally decide which type, brand and model of the car you want to purchase. Once you’re certain about it, keeping an eye on its price, finding time to visit a number of dealers and using the quotes you get to negotiate with others should all follow.

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One common mistake of car shoppers is they tend to focus on their target’s dealer invoice price or the manufacturer’s suggested retail price (MSRP) also known as “asking price.” So instead of using any of these two as your point of reference, get an idea as to its fair market value or average selling price. And once you do, you can use it as an effective negotiating tool at your preferred car dealer.

Remember that Adding “extras” or Special Options Includes a Dealer Markup.

Loading too many options that aren’t necessary can do more harm than good especially in affecting your budget. A good way to deal with this is to check the best option package the dealer has in store for you.

Some financial experts and car enthusiasts say that most dealer add-ons only cost money without adding much value, so it isn’t really cool and practical, after all. Never get swayed by anyone to add special features or options and even extend warranties that you think you don’t need much or couldn’t afford.

You Have the Power to Control the Sale.

If at any time you don’t feel good about the sale, you can walk away. Often, the salesman will hit you with a much lower offer when you get up out of your seat and tell them you’ve decided against it. Remember, they can’t do the deal without you, and you are always in a position to say, “NO.” You lose nothing but a few hours of your time; they lose a commission and a bonus.

Don’t Rush, Take Your Time.

Despite the expense and complexity of every car transaction, most people tend to rush through the process. It’s either they fall into being a prey of that “new car craze” or that sales pitch saying that this deal is only good right now. Don’t get trapped. The thing is the deal will still be there tomorrow, and it may get better if the salesperson believes you’re bargaining or pushing too hard.

Put in mind that taking hours or even days to cool down and look at the deal in a less-pressured environment sometimes matters a lot. More so, rushing won’t allow you make an informed purchase.

Don’t fall into those common money traps. You really have to take a hard look at your budget and financial goals. Consider the car maintenance, gas consumption, durability, brand reputation, and overall value. For some of you, a new car is just not in the cards even if you think you “deserve it.”

With all these car-buying tips, you can now do a little homework to avoid the most common pitfalls and see how you can maximize your resources before shopping for your new wheels. Get ready to conquer the road and enjoy each driving adventure.