If you are currently in the market for a new car, it is important that you do your research before choosing the car of your dreams. It is equally important that you avoid some of the common mistakes people tend to make when buying a new car, especially if this is their first time. Make sure you avoid the following mistakes.
Not Reading the Warranty's Fine Print
Many new cars automatically come with a warranty, called the manufacturer's warranty. This will often cover basic repairs and service needed within a short period of time after buying a car. It gives you a little protection if you have issues with the car within this period of time. However, the warranty often has stipulations, such as only being able to get certain types of repairs, or having to still pay for part of the repair costs. Make sure you read the fine print and know exactly what the conditions are. This is especially important if you are thinking about buying an extended warranty, since you might find that it isn't worth the cost.
Only Calculating the Monthly Payment
When you first find out the cost of the vehicle you want and provide the dealership with the amount of down payment you can provide, they will often let you know how much your monthly payment will be based on your credit information. While this is important to know so you can decide if it is affordable and worth it to you, don't only think about the monthly payments. Even if the payment is manageable, a high interest rate might mean that it takes longer to pay off the car. Also consider the number of years you will finance the car for in addition to the monthly payments.
Failing to Consider Additional Costs
Make sure you also think about the other costs that might be included with the type of car you buy. Depending on the make and model, you might end up paying more for car insurance since it has a higher risk for accidents or theft. If the car doesn't have great gas mileage, you will be paying more for gas, ultimately paying more for the car in general. Also consider the cost of repairs and maintenance, since some models tend to cost a little more.
Also make sure you have your financing lined up before visiting a dealership. You need to know if you can pay cash, are getting a loan from your bank or credit union, or if you are going to finance it directly through the dealership.
For more information about the process and logistics of purchasing a new car, contact a local car dealership.Share