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Are you considering the purchase of a new car? It's one of the largest purchases that you will make outside of your home. With each new car that drives off the lots come hundreds of mistakes that cost the buyers dearly. From smooth-talking salesmen to overpriced extras, here is five of the worst car buying mistakes.
When you purchase a car, they have tons of additional items you can add that do nothing more than bump up the price of the car. Packages like adding Scotch-guard to the seats are more cost effective to do yourself. What about the extended warranty plans? Having an extended warranty is good, but you can get a better plan yourself without all the exclusions. Be wary of these additional purchases, as they are just the dealer's way of increasing the price.
Being Lured By A New Car Rather Than Buying Certified Used
When you drive a new car off the lot, it is instantly worth less than what you paid for it. That's because a new car depreciates drastically. Rather, a better option is to buy a certified used vehicle with low mileage and plenty of time left on the warranty. You can save thousands and have a car that is just as good as a new one. Make sure the car is certified and has low miles, and it's a wiser purchase.
Considering the Payment Rather Than Purchase Price
Most people think in terms of how much their monthly payment will be. While the monthly payment is important, it is also vital to consider the total purchase price; the same car maybe able to be purchased at a different lot for a better price. Look at the sticker and the monthly payment to get a good overall picture.
Financing With Buy-Here-Pay-Here Loans
If your credit score is really low, you may think that it is a good option to utilize dealership financing. While it may sound like a good option, it's really going to cost you in the end. A dealer-financed car is the only way that some people can get a loan. The key is to increase the credit score and later be able to get another vehicle at a prime rate. You can do this by consulting with credit repair professionals about boosting your score. Do credit repair companies work for improving credit scores? Yes, especially if you don’t have a lot of time to wait before purchasing a car. Though it may seem like a deal at the time, if you have any other option, avoid dealership financing.
Do Your Homework
Don't just drive by the dealership and drive the first thing you see; that is why they put the shiny ones out front. You need to do some online research before making this purchase. Make sure the auto has good safety ratings, is favorable in customer reviews, and is within your price range. See which car lot has it for the best prices around. Don't just assume anything; always spend a decent amount of time researching before buying.
Buying a Car Is a Long-Term Commitment
Most car loans are financed for 72 months these days. There are many things that you must take into consideration. Some car payments can be $600 or more a month; can you afford that for the next six years? Think long term and not just in the present. The car needs to be able to fit your lifestyle for the current time and in the future. Do you want to start a family soon? If so, then you probably don't want a cute sporty coupe. Think and rethink any purchase so that you are sure you are making the right decision. Once the monthly payment reminders start coming in the mail, you will thank yourself for making the right choice.
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