Car Buying Mistakes (part 2)

Mistake 6 Trade-in Negotiations when Buying a New

It is easier for the dealer to make you believe that you're getting a good price for your trade-in if you combine trading-in with buying a new car! So you'd better make your car buying deal apart from your trading-in deal to make both deals more profitable for you.

Mistake 7 Agreeing upon Dealer Financing

The Finance and Insurance (F&I) office is the most dangerous place in a dealership. Be wary of every offer you will get here: financing, warranty, insurances like life insurance that pays off your loan balance. Decline everything offered from an F&I office except a low interest rate on a loan of no more than 36 months.

Mistake 8 Buying a Car without Time Considerations

At the end of any month when dealerships want to maximize the sale volumes and their bonuses you'll get your best deals. If you can wait, then wait until the last couple of days in December. End-of-year purchases are almost always great deals.

Mistake 9 Leasing a Car

Car dealerships make much more profit on car leases than on car sales. The lease agreement is written totally in favor of the lease company. As a car lessee you are responsible for the car maintenance and insurance. In addition, your lease limits you to a certain maximum number of miles driven. If you exceed that limit, you have to deal with the mileage penalties.

Mistake 10 Opting for a New Car

The value of your car drops up to 20% the moment you drive your new ride off the dealer lot. The car lots are jammed with excellent used cars. So if you do not need a new car for some very special reason, you can save a lot of money by buying a used car. So compare the total cost of a new car versus the used car, including finance costs, maintenance and insurance to make your final choice.

Buying cars is probably the second largest purchase in anyones life. If you are a smart and well-versed buyer then you may sit back lightheartedly since you definitely wont be an auto fraud victim, instead will save money and enjoy your car!