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April 24, 2014

Mistakes First Time Car Buyers Make And How To Avoid Them

Buying a new car is often an exciting experience. However, if you’ve never bought a car before, there are several tips to help you avoid making common mistakes. The first step is to determine how much you can afford to pay each month for a car payment. If you are in college, then it would be wise to pay cash for your new car. When you are at the dealership, it is easy to get carried away by falling in love with a specific car. Emotional buying is the first big mistake many first time car buyers make. If you have done your homework by figuring out how much you can afford, then you can avoid this common mistake.

Setup Financing Before You Shop

You should first setup your financing before even shopping for a new vehicle. If you are counting on the dealership for financing, you might pay hundreds or even thousands of dollars too much. Join a nearby credit union that offers car loans at a reasonable rate of interest. If you are at the mercy of the dealership, then you will likely pay too much for your new car. A common way to overpay on financing at the dealership is to tell the salesperson how much you can afford each month. The focus should be on finding a vehicle at a reasonable price rather than the monthly car payment.

Negotiating at the Dealership

If you spend a lot of time at the dealership, then you are more likely to overpay for a new car. You should comparison shop online for the make and model of the vehicle you want to purchase. Then, when you go to the dealership, you know exactly what the car is worth. Let the salesperson know that you have your own financing to avoid making a common rookie mistake. Don’t forget to test drive the vehicle you are interested in purchasing.

Used Car Tips

If you are purchasing a used car, then it is especially important that you have the vehicle checked out by a knowledgeable car mechanic. Most dealerships will let you invite your mechanic to check out the vehicle. As a new car buyer, you can’t be expected to know all about cars. A good mechanic will be able to spot things such as a rolled back odometer, transmission and engine problems.

These types of factors can greatly influence whether or not your purchase is a good idea. Look for a mechanic that is certified by the National Institute for Automotive Service Excellence. You should also run the vehicle identification number to ensure the car has not been in an accident or flooded.

You can find free vehicle identification number checks online with a little research. You should also make sure the car you are buying will suit your needs. If you need the car to get good gas mileage, don’t look at large trucks or other models that use a lot of gas. Look for a small vehicle that has a good safety record instead.

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