Archive for the 'car buying online' Category
Here are the final four of the seven biggest mistakes you need to avoid when buying a car.
Mistake number four: ONLY looking at the month-to-month payment plans There are very few people who plan on buying a car outright. After all, not many people can simply write a check for $10,000 or more whenever they please. While a monthly paying plan is very beneficial to most car buyers (in fact, it’s what makes car ownership possible for many purchasers), pay close attention to the terms you’re agreeing to. A half of a percentage point could cause you to pay hundreds or even thousands of dollars more over the duration of the loan. Pay attention to the details.
Mistake number five: Buying Too Big Always consider your situation and your exact needs before making your purchase. If you are planning on needing to transport large items frequently or have a large family, a good SUV or other large vehicle would probably suit you best. But if your driving needs extend only to the workplace and back, perhaps the SUV wouldn’t be such a good idea. Before you spend your moolah on a car, spend a good deal of thought on exactly what you’ll be needing the vehicle for. It will only help you save money– not a bad idea in the long run.
Mistake number six: Features, Features… Almost all car seekers have a certain set of features that they are looking for in a car. This isn’t always bad– after all, if you know that you’re going to be doing a lot of snow driving, it is a very good idea to have four-wheel drive. But when it comes down to it, most features are more frivolous than necessary. Do you really need to spend more money on power windows when crank windows would suffice? Would the $500 built-in navigation system really be much better than buying a $100 external GPS? Considering only what you NEED in a car rather than what you want is an extremely simple way to cut your costs.
Mistake number seven: Buying Before Research If you have a particular car model that you are planning on buying, know as much as you can about the car BEFORE you take the trip to the dealer. Often, you can haggle on the sticker price of the car and feel like you’ve saved yourself a good amount of money, when in fact you could have insisted on much less. Know the value and the actual price of the car before you talk to a salesman.
Avoiding these seven mistakes will save you not only hundreds and possibly thousands of dollars when you make your car purchase, but also save you time and hassle as well. Follow these simple guides and you will find yourself more satisfied with your new car and feeling a bit better about the state of your bank account as well.
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Buying a car, as much as the salesmen try to convince you otherwise, is not an easy task. There are dozens, if not hundreds, of factors that need to be considered before a car purchase is made. Your individual needs, the condition of your previous or current car, and the other reasons we normally consider when buying a car are only the beginning. The season, the economy, gas prices, the options, the dealers, and the planned length of ownership are all different pieces of the puzzle that must be considered. Here is the list of the top seven worst mistakes that people make when it comes to purchasing a new vehicle.
Mistake number one: Buying a car without considering the month-to-month expenses A good general rule of thumb when considering car payments is that you should not be paying more than 12% to 15% of your take-home pay (after taxes) on car payments. This includes gas expenditures, mortgage, lease payments, and insurance. If a particular car would require more than this amount, you should seriously consider passing up the deal. Chances are that you will end up over your head when you could have found a perfectly adequate car that would have fit your budget. How to determine 15%: Multiply your total paycheck after taxes by .15 . That amount should equal or be more than what you’re planning on paying (or are paying currently) for a car.
Mistake number two: Falling for the “long loan trap” Since a new car depreciates in value by up to 30-40% in the first two years of ownership, it’s very common for a new car owner to go “upside-down”– or owe more on the loan of the car than the car is worth – when they decide to pay for the car slowly. In general, if you can’t pay for the car completely in 36 to 48 months, it’s a good idea to leave that much car alone and settle for a more manageable purchase.
Mistake number three: Choosing the more lucrative cash rebate instead of considering the lower interest rate Whenever you go near a car dealership or even a car for sale, BRING A CALCULATOR. Salesmen are masters of making more money look like less and vice versa. Even though a $2000 rebate sounds much better than a 2% interest rate decrease, that 3% interest rate instead of 5% could save you more than $2000 depending on how long your loan will take you to pay off. ALWAYS do the math before you sign up for something that may cost you more than you bargained for. Be sure to watch for part two in the series!