If you want to make sure that you do not go into too much debt when buying your new car, or if you want to make sure that you get the best result out of your vehicle purchase, then here are 3 pitfalls that you need to try and avoid.
Not Getting Preapproved
When possible, you have to make sure that you get preapproved for your car loan before you even think about visiting your local dealership. If you don’t, then you may find that you get a loan with a way higher interest rate. And this is the last thing you need.
When and if you get preapproved, then this will help you to avoid any issues with your credit. If you do have issues, then now would be the time for you to try and get them sorted. Then you have more options when the time comes for you to choose your car.
Believe it or not, your local dealership has the power to jack up the rate that you are offered. And above what you qualify for. The last thing you want is to take a bad deal. So make sure that you have a solid avenue of finance in place prior to walking onto the dealership lot. Especially if you’re buying a family car.
Telling the Dealer too Much
If you know that you are buying a car at your local dealership, then it is always best for you to try and focus on doing one thing at a time. Don’t give the salespeople too much information either. If you are playing cards, you wouldn’t show everyone that you have a pair of aces, would you?
The same concept applies when you are buying a car. Sure, the dealer will want to know what price you are looking at. But don’t make things too complicated for yourself. Don’t give them too much information. Because if you do then you may find that they end up pushing you to a more expensive car. Or you may even find that they end up lowballing you when it comes to your trade-in as well.
If you do not have a car because you have been in a car accident then remember, you can probably get a payout from your lawyers.
If you have bought a car, then you will probably have a good understanding as to how this works. You may have been at the dealership for quite some time, you may have even settled on a price and then haggled with the trade-in value of your current car.
You will then be taken to the back office so you can finalize your deal. At this point, you will be talked to about things such as extended warranties, paint protection, tire protection, and more. You have to remember that a dealership will make a lot of money on stuff like this, so don’t feel tempted to think that you are getting a good deal.
Take your time and think about whether or not you need this, and if it is going to be worth the money, considering how much you’re paying for the car.