Car buyers today have more tools at their disposal than ever before to help them find the right vehicle at the right price. However, despite these resources, mistakes can still happen. Whether it’s getting caught up in the excitement of a new car or feeling pressured to make a quick decision, car shoppers can easily fall into common pitfalls. To help navigate the car-buying process more successfully, experts at Edmunds have identified the five biggest mistakes that car shoppers often make and offer valuable tips to avoid them.
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Being upside down on a trade-in vehicle: One common mistake that many car buyers make is being "upside down" on their trade-in vehicle. This means that they owe more on their current car loan than the vehicle is worth. According to a recent report from Edmunds, nearly one in four consumers who financed a new vehicle purchase with a trade-in during the second quarter of 2024 were underwater on their prior car loan. To avoid this situation, experts recommend keeping your current car longer and continuing to pay off the loan before trading it in for a new vehicle.
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Rushing to buy without any prior research: Another mistake that car shoppers often make is rushing into a purchase without doing any prior research. While there may be legitimate reasons for needing a new car quickly, taking the time to research different options and compare prices can help you make a more informed decision. By doing your homework, you can also familiarize yourself with new automotive features and technologies that may be unfamiliar to you.
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Not giving yourself the necessary time to get quotes from multiple dealers: It’s essential to shop around and get quotes from multiple dealers before making a purchase decision. Many shoppers make the mistake of only considering one dealership, which can result in missing out on better deals elsewhere. Experts recommend renting a car for a few days if needed to give yourself the time to research and compare prices from different dealers.
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Not having a price-negotiation strategy: Some car buyers may feel overwhelmed by the negotiation process and end up agreeing to terms that are not in their best interest. To avoid this, experts suggest doing thorough research on the market value of the vehicle you want to buy before negotiating. Having a clear price-negotiation strategy in place can help you focus on getting the best deal possible.
- Buying too many add-ons: Dealerships often try to sell additional add-ons like anti-theft devices, warranties, and protection packages to boost their profits. While some add-ons may be beneficial, it’s essential to consider whether they are necessary and negotiate the price accordingly. Experts recommend focusing on getting the best deal on the vehicle itself and avoiding unnecessary add-ons that can increase the overall cost of the purchase.
In conclusion, taking the time to research, compare prices, and negotiate effectively can help car buyers avoid common mistakes and secure a better deal on their next vehicle purchase. By being aware of these pitfalls and following the expert tips provided by Edmunds, car shoppers can make more informed decisions and save both time and money in the long run.