Buying a car is more than just simply buying a tool or asset that you’re going to be using in daily life. It’s a decision that can have ongoing financial repercussions. As such, you want to make sure that you’re not making any of the mistakes that can make a car purchase more expensive than it ought to be. Here, we’re going to look at some of those mistakes.
Not getting your credit ready
Your credit can influence how much you’re paying for your car. If you take out a loan to be able to afford the asking price of the car, as most people do, then your credit score can influence which loans are available to you. As such, take the time to manage your credit cards, check your score, and do what you can to improve it. Otherwise, you could be paying more each month for your car, even if the asking price of it doesn’t move. Good credit management is always vital for future financial decision-making.
Not researching the car you want
Do not make the mistake of jumping at a car that you see and want as soon as you lay eyes on it. For one, you want to make sure that it drives as good as it looks, taking it for a test drive and perhaps even having a mechanic look at it. But you also want to take the time to check sites like Edmunds to see what cars like that typically go for, especially if they’re used, and to see if there are any available at a better price. Be armed with information when you try to negotiate with any dealer over the price of a car.
Not accounting for the ongoing costs
That initial price is not going to be the only thing that you’re paying, either. After you buy the car, take the time to work out how much you can expect to pay for it on a weekly or monthly basis. Take into account the fuel costs based on your driving habits, what insurance you’re likely to pay for it, and how much they typically cost for maintenance. Do your research on the internet and put together a car ownership budget to make sure that you can afford the car you have bought.
Not being mindful of the extras
Although not always applicable, if you’re buying from a dealership, then you should also have a good idea of the kind of extras that dealers can offer you. Some of these extras might have some practical value but, as Yahoo Finance shows, rarely are they worth the money that you might be paying at the dealership. Do your research, work out which extras you might actually want, and see if you can get them elsewhere, after having bought the car, for less.
A savvy car buyer is one who considers all of the money implications of buying a car, beyond just the asking price. Take the above into consideration if you want to ensure that that’s you.