Things to avoid when buying a car
When buying a car, the two most important factors you need to pay attention to are “patience” and “thorough preparation”. If you ignore them, you may make costly and regrettable decisions. Here are some things to avoid when buying a car, so you can find a balance between what you need and what you want.
1. Lack of research
It's 2018, not 1995, so there's no reason you can't read reviews, statistics, and online forums before heading to the dealership in person.
The Internet is the biggest fear for car dealers, as car buyers are increasingly getting information thanks to Google searches. You can also check the history of a car at the dealership with just the VIN number.
2. Buy the first car you see
There is a 99% chance that you can find the exact same car for less somewhere else, or if it is a used car, there will be a newer one at a better price. So no matter how much you like the car, do some research, haste will make you waste your money.
3. Skip the test drive
This is closely related to note #2, because just because you love a car at the dealership doesn’t mean it’s perfect, mechanically sound, or drives smoothly. This is even more important when you’re thinking about buying a used car.
4. Buying a car that does not suit your actual needs
Do you really need a 4x4 SUV if you never go off-roading? A roadster might be great for a weekend morning, but is it useful when you regularly have to drive the kids to school?
Similarly, a 2-door car looks cool, but is not suitable for families... If you have to choose between the two, buy what you need, not what you like!
5. “Overspending”
Buying a car should be a decision based on reason rather than emotion. A rational person will consider what will happen in the future, while an emotional person will only consider the present, which may lead to regret.
Many people have the mentality of borrowing more money to buy a car in a higher, more luxurious segment, instead of buying a car in a lower segment to ensure financial security. Because of that mentality, in addition to the monthly expenses to "feed" the car, many people have to worry about paying off the debt and at that time, the car becomes a financial burden.
6. Ignore the costs involved
You may have broken your bank balance by opting for an expensive German SUV, but that could just be the beginning of your troubles.
Have you considered fuel, tire and servicing costs – especially if you buy a used car and don’t have a maintenance plan? Insurance isn’t the only thing you need to consider when buying a car, and it’s not the entire cost of owning one.
7. Trade in your used car with a dealer instead of selling it yourself
The allure of new cars is so irresistible that many people immediately want to “sell” their old cars as a deposit for a new one. Admittedly, selling your car to a dealer is quicker and more convenient than selling it yourself; but remember, the dealer still needs to make a profit when selling your car to the next buyer. The lesson? To make more money, sell it yourself.
8. Getting caught in financial and insurance “traps”
What could be more convenient than a friendly salesperson at the dealership offering customized financing and insurance, along with a free, delicious cappuccino when you sign the car purchase contract? This sweet time-saver will ensure that you don’t get the best deal.
Shop around for financing and insurance to get better rates and coverage.
9. Focus only on the one-time payment
Buying a car on credit can also be a sweet trap. For example, the car payment may be just over 5 million/month, but you will have to pay it off in 72 months (that is 6 years); and on top of that, you have to pay the remaining amount (up to 35% of the new value of the car) which you may not be able to afford. At some point, you may regret making such an unwise decision.
Make sure that if something unexpected happens, your monthly payments will still be within your reach.
10. Buy a new car instead of a used car with a warranty
On average, a car will lose 15-20% of its value in the first year of ownership. Consider this carefully because you can save a lot of money by buying a used car that is still under warranty.
11. Not willing to turn back
Remember, if the deal fails, the dealer will be "hurt" more than you. Resolutely refuse and leave the dealer if you cannot reach an agreement on price or accompanying services, because you are the "king" in this relationship!
