Car Buyers’ Worst Mistakes
How much money do you think educated car buyers can save over uneducated buyers when buying the same car? Would $5,000 get your attention? While you may not save as much as $5,000, you will save a bunch if you avoid these classic car-buying errors.
- Showing Enthusiasm – If you act excited, the seller/dealer will know that they have a vehicle you really like. The price goes up instantly. Keep that enthusiasm under wraps until you are driving home.
- Buying in a hurry – If you buy on your first visit to a dealership, you don’t have time to compare and shop around. Take your time. Be willing to walk away. The price at most dealerships falls quickly if you move slowly or even out the door.
- Giving deposits BEFORE the dealer approves your offer on a vehicle – Feel free to give a deposit if you really want a vehicle but don’t give it until you have negotiated a firm deal. Some dealerships may use deposits to keep you there while they try to convince you to pay more. You cannot leave if they have your deposit – money, a credit card and/or driver’s license.
- Being switched to leasing without doing your homework – Dealerships make a big profit if they lease a car rather than sell it. They will try to convince you leasing is cheaper than buying but, in most cases, it isn’t. If you want to lease, that’s fine. Just don’t jump into anything or feel pressured to do so.
- Trading in your old car without knowing its value in advance – A dealership may offer a lower price for your old car. To help get the most for your car, simply clean it up. Then, try to sell it to several used car departments. The highest amount you are offered for it gives you an idea of its value. There are also several websites that will give you a valuation for your car by entering a few key factors. Then, don’t accept any less than that for your trade-in.
- Accepting financing automatically at the dealership – The dealership may be the cheapest place to finance your car, but not always. Before you sign on the dotted line, bring your Bill of Sale to Evergreen Park Schools Federal Credit Union and compare the rates.
HERE’S THE BIGGEST MISTAKE OF ALL – Letting the dealership pull your credit. As soon as you walk into the dealership, you MUST tell them NOT to pull your credit under any circumstances. Be forceful! Dealerships will “shop you around” to various financial institutions to try to find an interest rate that “appeals” to you.
AND HERE’S THE CATCH: Each financial institution will pull your credit. Each pull is a hit against your credit score which will lower your rate. If you then decide to visit the Credit Union for the loan, we will pull your credit too…but only once! But by then, the damage could be done!
So now that you are armed with all of this vital car shopping information, come see the Credit Union first to help you preserve your money – that is what credit unions are all about. Avoid these mistakes and put your hard-earned money to work for you rather than the dealer.
