Top 10 Car-Buying Mistakes

According to Yahoo, here are the top 10 car-buying mistakes:

• Ignoring your needs.
• Showing your hand.
• Bad research and no research.
• Picking the most conveniently located dealership.
• Going by payment, rather than price.
• Prematurely talking trade-in.
• Not shopping interest rates.
• One-stop shopping at the dealership.
• Going it alone when you can use a helping hand.
• Thinking it's over before it's over.

Based on my experience, this is some pretty good advice overall. A few points I'd like to emphasize:

1. You must do your research. The last two times I bought a car, I knew as much (if not more) about the costs of it, the accessories, etc. as the sales person did.

2. Let competition rule. I decided which car I wanted and what accessories, then sent an email with details to seven dealerships in my area. A bidding war ensued. I did this all by email from the comfort of my home.

3. If one spouse hates to negotiate (or is poor at it), let the other one do the dirty work. My wife is a people-pleaser and just can't bring herself to haggle and "get dirty" when you need to. I, on the other hand, love the process. So once she decided what car she wanted, I took over from there.

4. Timing is everything. Start your bidding process in the middle of a month with the intention of wrapping up everything by the end of the month. Dealers get desperate to make their numbers at the end of the month. End of their fiscal year is even better. :-)

Comments

[katama]

Anyone happen to know when the fiscal year end is for most dealerships?

[fivecentnickel.com]

Good tips. Here's ten more (although there's overlap):

http://www.fivecentnickel.com/2005/09/20/car-buying-mistakes/

[Dan]

I think buying a new car is a mistake. Used cars are way cheaper.

[fivecentnickel.com]

Dan, that all depends on your perspective. If you're buying a car that holds its resale value and you drive your cars for a long time (I just replaced my 15 year old Accord) then buying a new car isn't all that different from buying used (pricewise) yet you get the full manufacturer warranty. When we bought our 2004 Honda Odyssey 18 months ago it actually cost MORE to buy a used on at CarMax. Two lessons there... First, CarMax may not be the best place to buy a used car. Second, cars by Honda, Toyota and the like hold their resale value so well that a new car can be had for barely more than a late model used.

[FMF]

Katama --

My guess is that every dealership is different. I found out the fiscal year of my dealership by simply asking my salesman. ;-)

FMF

[Steve]

I've found a major rip-off at most dealerships. After you've made the deal (new or used), you end up in a little office signing papers. One paper they try to slip through unnoticed is a loss-limiting fee. Basically, it's insurance for if the car is stolen from the lot. Yep- they are charging you for their insurance. It doesn't protect you against loss, just them, and just up to the time you buy it. You can decline this charge (usually a couple hundred $$'s), although they can be stubborn and you may have to be tough about it.