Seven Common Mistakes when Buying a New Car

When buying any big ticket item, it pays to do as much research as you possibly can before you commit to any vehicle purchase in writing. This is a very important point when buying a car since there is so much money involved these days. It is also wise to remember that a vehicle purchase is going to be with you for at least the next three years and perhaps even longer than that!

So what are the most important things to consider when purchasing a new car and how can we make mistakes regarding these points? I have compiled a list of my top seven points which can cause you a lot of trouble if you do not prepare for them ahead of time.

And here is the actual top seven list that I created.

1). One of the most common mistakes I see people making when shopping for a new car is that they tend to limit themselves to the local dealerships in their area. This can cost you quite a lot since there are many dealerships in other areas that are surviving on much leaner margins than the dealerships in our area. It may mean a few hours drive for some, but the deals that you can get in some other areas of the country are simply amazing.

2). You only visit the dealer down the street since you have always bought your cars from them. Having a relationship with a local dealer may help some of us, but ultimately you need to be buying something from them on a regular basis in order for them to remember you and for them to give you the best deals possible. You may find a superstore type dealership which has access to many more makes and models than the Chevy dealer down at the corner. So explore the Internet and your Sunday paper to see who is cutting the best deals around.

Which packages will give you the most bang for your buck?

3). We tend to cheap out on the more expensive options but they are the ones we would appreciate every day plus they would add to your resale value. Face it some of us never buy anything with the resale of that item as a primary concern but for those who do it is ultra important to really study the available options lists and decide which packages will give you the most bang for your buck. If you skimp on the amenities then it may cost you more later when the resale value is low.

4). We tend to focus on one or two big points letting the rest of the less important items slip past. An example of this might be when someone chooses fuel economy over leg room for the kids. It is better to find some middle ground as a compromise to see if you can get the best fit vehicle for your personal needs. Look at and comparing at least three makes and models is a great foundation to your research. Look closely at all of the options that each model includes in the base price versus the ones with add-on costs.

Shopping your car loan is important!

5). A lot of new car buyers do not understand the importance of shopping your car loan around before you commit to a purchase. You can take the information on any cars that you like into your banker and have them give you a ballpark figure on a loan for the make and model car you are interested in. If you are prepared with loan information from two or three reputable lending institutions ahead of time it could save you thousands of dollars across the life of that loan.

Checking on the cost of car insurance before committing to a purchase is a wise move.

6). We tend to forget to consider the increase on our insurance policy when we purchase certain makes and models. If you are shopping for cars and loans, then it is only logical that you should call on your insurance agent to get some fresh numbers on insurance for the car you are thinking about purchasing. It is also a good time to go out and get insurance quotes from alternative vendors as well. Once you are shaking things up you may as well go all the way!

Add on warranties, are they worth the extra cash?

7). Many new car buyers do not give full consideration to the optional repair warranties which are available on the new car they are buying. These optional policies can be quite confusing so it is important to research every single detail in regards to these add on warranties. Many folks believe that these are just too much money compared to fixing things yourself. What you need to do is find out what typically breaks down and find average repair costs versus the optional repair warranty.

It is not too difficult to get all glassy eyed over a sweet new ride that you would love to own, but the trick is to focus on the overall big picture as much as you are checking out the benefits of your new dream ride.

So be patient and take your time, just remember there will be another candy apple red Dodge Challenger with all the options that you "must have" right now, so be sure to do your homework and it will likely be worth the extra investment of your time and research that you did.