BUYING A CAR IS CHALLENGING for many people, and because they’re intimidated, they often make simple mistakes that end up costing them money, or see them buying the wrong car.
We talked with a colleague who spent many years in the motor trade as a salesman. He knows the tricks of the trade. He knows how to manipulate customers. And he was happy to share his insights with us, and now we’re sharing them with you.
Here are some simple rules to follow, whether you’re buying new or used.
1: Trust your instincts
You should be the one in control when you’re buying a car. After all, you always have the option of saying no or walking away. When you’re dealing with a sales person or a company, if something doesn’t feel right, trust your natural instincts and find another salesperson or company.
2: Don’t believe everything you read
Most people these days do research before they approach a showroom. It’s a great idea, but don’t believe everything you read. Many car reviews are based on opinion, not facts. Many are written by people whose criteria won’t match your own (such as those written by 25-year-old car fanatics who have never actually had to spend their own money buying a car!) Rely on a trusted and reputable source. And beware of so-called reviewers who are actually more interested in getting a commission (we used to call them “kickbacks”) than giving you the information you need to make a considered purchase.
3: Taking a test drive that doesn’t tell you what you need to know
Incredibly, seniordriveraus has been hearing more and more tales about buyers who have purchased a car without taking a test drive. Part of that is due to the constrained supply during the current pandemic, but you need to drive the car you are considering, and one as close to the specifications and options you are considering. The differences between vehicles with “almost identical” specifications can be considerable. Take the car for a good long, varied drive – freeways, city driving, on country roads, in traffic, and, if possible, along a route you know well and use often.
4: Trying to outsmart the dealer
Car dealers sell cars every single day. You buy one perhaps once every three or four years. Guess who understands the process better? Don’t withhold info from a dealership, like whether or not you have a trade-in, or how you are paying for the car. Good dealerships won’t play games with you, so in return, you shouldn’t play games with them.
5: Not knowing interest rates
Car dealers are not “your friends with money”. If you have a poor credit rating, a dealer may promise you that they can get you finance, but be warned: it will come at a cost. If you are borrowing to buy a car, investigate all your options (such as a bank, credit union or other finance provider) and understand how the interest rates vary. Your last choice should be to let the dealer provide the finance: not only will it probably be at a higher interest rate, you’ll also be paying his commission.
6: Rushing the paperwork
It’s exciting buying a new car, and understandable that you want to get all the boring stuff out of the way as quickly as possible. Slow down. Read everything you are being asked to sign and understand what you are committing to. Beware of options you don’t need (or want). Don’t buy an extended warranty without checking carefully that it will meet your needs, and delivers value for money. Resist the temptation to bundle in paint and fabric protection, window tinting and the host of other things the dealer (or usually an attractive young female employee) will try to sell you on – if you must have them, you can almost certainly do a better deal elsewhere (and if you’re financing the car, you won’t be paying interest on the extras). We understand paperwork is tedious, but you will be signing a legally binding contract, so make sure you understand it fully.
7: Leasing when you shouldn’t
There are all sorts of finance deals, and some of them can cost you dearly in the long run. Never make a decision based on the monthly payment; it’s the total overall cost you must never lose sight of. Some leases sound incredibly appealing, but carry an end-of-lease balloon payment. Always understand the agreement you are entering into, and how much it will cost you in total. And don’t spend more than you can afford.
If you can avoid these mistakes, you’ll get a much better overall deal and a happy ownership experience.