Buying a car, whether brand-new or gently used is one of the biggest financial moves you’ll make. It affects your budget, credit, and long-term expenses. And while it’s easy to get caught up in the thrill of picking out the perfect ride, that excitement can also cloud your judgment.
Before you sign any paperwork, slow down and ask the right questions. Doing your homework can save you hundreds if not thousands of dollars and prevent you from making some of the most common car-buying mistakes.
Here are four things smart buyers consider before they drive off the lot:
Is Your Insurance About to Spike?
The cost of the car is only part of the story. Your insurance premium may go up based on the make, model, year, and even the color of your vehicle. Some cars cost more to insure, and others may require gap insurance depending on your financing. Always contact your insurance provider to get an estimate before you finalize the deal. Bonus tip: while you’re at it, research maintenance and repair costs, too—those tires and oil changes add up!
Shop Around—Seriously
Settling for the first dealership you visit could cost you. Pricing, financing offers, trade-in values, and incentives can vary widely. Make it a goal to visit at least three dealerships, even if it’s just for comparison. You might find a better deal—or a salesperson more willing to work with your budget—at your next stop.
Use Email to Start the Negotiation
Skip the back-and-forth stress of negotiating in person by contacting dealership internet sales departments directly. Send a detailed email about what you’re looking for, your budget, and what you’re willing to pay. This not only saves time but gives you a paper trail of the conversation.
Maximize Your Test Drive
This is more than just a spin around the block. Use your test drive to thoroughly evaluate the vehicle. Do the seats feel comfortable? Is the trunk big enough? Can you see clearly from all angles? Bring a checklist with your must-haves and test for each one. You’re buying a car that needs to work for you—not just for your budget, but for your lifestyle.
Don’t rush. Do the research. Ask the questions. And remember that a car might be a necessity, but how you buy it should always be a thoughtful, informed decision.