How to Avoid Mistakes When Buying an Automobile

Purchasing an automobile is a pretty big undertaking. It is a major purchase, but also a calculated investment. So, before you go into negotiations with a car dealership, avoid these mistakes people make when buying an automobile.

Difficulty: Easy

Instructions

Things You'll Need:

• computer
• research skills
• knowledge of the monetary value of an automobile

1. Avoid buying the wrong vehicle. Take into consideration your overall driving schedule before purchasing a vehicle. Buying an SUV is not smart if you need to drive only a mile and half during the week. And the sports car looks racy and cool but it is not the best choice if you have a family of five.

2. In the showroom, do not show emotion for a particular vehicle. Give yourself time to step back and evaluate whether the car is for you and your bank account. If you have budgeted yourself for a $20,000 automobile, then do not fall head over heels for a car listed at $30,000. You might be able to negotiate the sales price down to $27,000, but never to your $20,000 range.

3. Never choose a car dealership by location. Not all dealers are the same; in fact, many sell different makes and models. Ask around. Get input from friends and family members on where they purchased their automobiles and how they felt about the service given to them. Obtain a dealer's CSI (Customer Satisfaction Index) report from individual automakers, which details their ranking with other dealerships in your area. The CSI is an reflection of how well a dealer satisfies its customers in terms of sales and service.

4. Never discuss trade-in of your car early in the negotiations. This is an easy trap to fall into with dealerships, as they love to play the trade-in game with potential customers. Negotiate your price for the new car prior to bringing your automobile into the conversation. Clean your car before going to the dealership. Do not let the appraiser assume you put little value on your car.

5. If the art of negotiation makes you nauseous or gives you a migraine headache, then turn over the process to an auto broker or a service which nets members special pricing with dealerships.

6. Beware the finance office, as dealerships make as much money there as they do on the showroom floor. Most people drop their guard once they shake hands with the salesperson, but the deal is not over until you drive away from the dealership in your new car. Insurance, extra fees and interest rate changes are among the dealer add-ons that could clobber you on the way out the door.