ALT-1 Common Errors People Make when Buying Cars
Ready to purchase a car? Avoid errors that could cost you in the long term.
NEVER deal with monthly payment amounts. If you tell a salesperson how much you can "afford" a month, that is what your monthly payments will be, however they can add as many months as they like. Each month added means extra interest for them. Only deal in the final price.
Do NOT give them a price range. If you do, watch closely, you will see the dollar signs in their eyes and the cash register bell begins to ding as they work the numbers.
Do NOT tell them up front if you are trading a car. Either ride with a friend, or tell them you are undecided. Why? Simple, I traded my car for a new one. The car I was trading only had $1,500 left to pay it off. In the end, I ended up receiving NOTHING for my car in the trade except them paying it off. They got my car for the payoff and resold it at a much higher profitable price. By telling them early on that I was trading, they had time to pad extra funds into the bill so I received nothing in trade.
Do NOT pay more for undercoating, paint treatments, etc. These are all designed to earn them money with little or no effort. Cars today are made from alloys and treated to resist corrosion. Undercoatings applied at the dealership may not be properly applied (humidity, etc may not be properly controlled), they can over spray the inside of the rims (like they did mine) with no recourse from you to make them correct their poor effort. Paint today is coated with clear coat and should only require the routine maintenance of washing, etc.
Test drive ANY car you are intent on purchasing. Do not have the radio playing and do not be afraid to DRIVE it like it should be. That means taking it on a road where you can only go 25 MPH is not sufficient. Drive it on the interstate at the speed limit - traffic permitting. Listen for sounds, noises that don't belong, observe shifting of automatic transmissions, and don't worry what the radio sounds like. Take it into a parking lot, turn tight circles, back up and go forward seveal times. Listen to the car.
NEVER set your heart on a particular car; be prepared to walk away if you are not satisfied with the deal.
Do NOT let them pressure you into something you cannot afford. It is best to go one day with the intention of NOT buying that day. Look at the cars. Find some you are interested in, and do your homework BEFORE talking to a salesperson. If you can visit the lot during closed hours, like Sundays, that is better.
Ask for a CARFAX report BEFORE you sign. They should have one printed, if they are reputable, and should not charge you for it. They will use it for the next prospective buyer if you do not close the deal.
NEVER give them your social security number up front "so they can work the numbers" while you look. Look first, pick a few cars, drive them all, and then decide if you want to purchase.
Do not take any "word" of a salesman. This means if a warranty is offered that covers something in particular, get it in writing and ensure it states what it is supposed to. He said - she said is worthless after you drive it off the lot.
If you purchase, READ the paperwork carefully BEFORE signing; particularly warranty and financing papers. Ensure you understand each charge and understand what is covered based on what is written (not promised). Remember, used cars typically do not have warranties.
The car isn't yours until you sign. You can stop the transaction anytime before you sign. If you are being pressured to buy higher than you wanted, pressured to hurry through the financing papers, etc. STOP and either tell them if they are busy, you will return or you will finish when you are finished. You are the customer, they hope that by rushing you to sign, you will sign for something without realizing it (in some cases).
Never allow them to add more money after the deal is signed. For example:
I was purchasing a new car and trading my old car referenced earlier. I wanted undercoating (it was before I got smarter). This was all agreed to and the papers were signed and I left a deposit because I was driving off with the car that day.
Being active duty military, I had duty the next day, meaning I could not leave my command for 24 hours. The second day after signing, I went back to finish and the salesman was demanding more money for the undercoating "because we aren't making any money on this deal."
I promptly removed the keys from my key ring, told him it wouldn't take but a minute to get my personal items out of it, and have my traded car ready for me. They didn't get any more money and had already sold my trade in.
If they aren't making money on a deal (which 99.999% is untrue) they wouldn't be selling it. It is a farce meant to elicit sympathy from you. "Oh you poor boy, here, let me give you more of my hard earned money." Right.
Do not fall for it. If they don't make money on it, truly, they will make up for it on other cars anyhow...
Do not have your heart set on a particular car. Ever notice how the second you step on a lot a salesman magically appears? Tell them you are just looking and send them away. This will allow you to leisurely look at makes, models, and stickers before dealing with them. Know what you can afford (total not monthly) and do not let anyone sway you from your figures.
Simple things can help to reduce the amount of money gouged by dealerships. Knowledge of the car model, prices for that model in your area based on mileage and condition, and knowing amenities they try adding are not necessary will go a long way to help you make common errors in your car-buying excursion. Conduct thorough inspections or have a trusted, knowledgeable friend do it if you are not familiar enough to, before buying or discussing financing to save expensive repairs in the future from "hidden" problems.
