Buying a car is a significant investment, and dealerships often rely on consumers making common mistakes to boost their bottom lines. If you're not careful, you can easily fall victim to these dealer tricks, resulting in paying more than you should. To empower you with the best car buying strategies, let’s explore five common car buying mistakes dealers count on—and exactly how you can avoid them.
1. Not Doing Your Homework
One of the most frequent car buying mistakes is walking into a dealership without proper research. Dealers thrive on your lack of information.
Dealer Trick:
Dealers capitalize on buyers who don’t know the vehicle’s true market value, current incentives, or average financing rates, often resulting in inflated prices.
How to Avoid:
Before setting foot into a dealership, research your desired car’s price range through reliable websites like Kelley Blue Book, Edmunds, or CarGurus. Know the MSRP, average selling price, and available incentives.
2. Focusing Only on Monthly Payments
Dealerships often steer conversations toward monthly payments rather than the overall price. It might feel easier to manage, but this approach could cost you thousands extra.
Dealer Trick:
By extending loan terms, dealerships can offer low monthly payments, disguising high interest rates and overall costs.
How to Avoid:
Always negotiate the total vehicle price first, then discuss financing. Aim for a shorter loan term with manageable monthly payments to save significantly on interest.
3. Skipping the Pre-Purchase Inspection (Especially on Used Cars)
Dealers often assure buyers their used cars have undergone thorough inspections. But skipping an independent check can be a costly mistake.
Dealer Trick:
Dealers rely on your trust and eagerness to close the deal quickly, potentially leaving you with hidden mechanical problems that surface later.
How to Avoid:
Always insist on an independent mechanic’s inspection. A reputable dealership should welcome transparency. If they refuse, walk away.
4. Forgetting About Financing Pre-Approval
Another costly mistake is relying solely on dealership financing. Dealers often profit from marking up interest rates on loans.
Dealer Trick:
Dealerships may offer financing deals that seem attractive upfront but contain marked-up interest rates that boost their profits significantly.
How to Avoid:
Get financing pre-approval from your bank, credit union, or an online lender before visiting the dealership. This arms you with negotiating power and can save you thousands.
5. Neglecting to Review the Final Paperwork
After a long negotiation, it's easy to become fatigued and overlook crucial details in your paperwork.
Dealer Trick:
Some dealers include unnecessary add-ons (like extended warranties, gap insurance, or overpriced accessories) in the final paperwork, inflating the total price quietly.
How to Avoid:
Take your time to thoroughly review every line item before signing. Question any charges that weren’t explicitly agreed upon. Remember, the contract you sign is legally binding.
Bonus Tip: Stay Alert and Confident
Dealers count on buyers feeling overwhelmed and anxious. Stay calm, confident, and willing to walk away if necessary. Your ability to negotiate improves dramatically when you're relaxed and informed.
Final Thoughts
Avoiding these car buying mistakes and being savvy enough to spot dealer tricks can save you substantial money and headaches. Remember, knowledge is your best ally in the car buying process. Being prepared ensures you drive off the lot with a great deal—not regrets.
Ready for expert assistance in your car buying journey? Book your 20-minute strategy call here with My New Car Buddy for personalized advice and car-buying strategies from industry professionals!
