Car Buyers’ Worst Mistakes
My car recently broke down. I got pre-approved through Elevate Credit Union, and our CEO Scott offered me some great advice when looking for a new car. I thought it would be great to share some of the information with you. Knowledge is power when it comes to buying a car. Scott’s first tip is to check the NADA value of the vehicle. Know before you even go into that office to get or make an offer. Know before you go! 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’ll save a bunch if you avoid these classic car-buying errors.
While you may not save as much as $5,000, you’ll save a bunch if you avoid these classic car-buying errors.
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Showing enthusiasm
If you act excited, the sellers know they have a unique product you want. The price goes up instantly. Keep that enthusiasm in check until you’ve driven home.
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Buying in a hurry
If you buy on your first visit to a dealership, you don’t have time to compare. Take your time. Be willing to walk away. The price at most dealerships falls quickly if you move slowly.
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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 the boss has said, “yes.” Some dealerships use deposits to keep you there while they try to convince you to pay more. And you can’t leave if they have your deposit—money, a credit card, a driver’s license, or your kids.
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Being switched to leasing without doing your homework
Because dealerships make a much larger profit if they lease rather than sell, even the best dealership may try to “switch” you. They’ll try to convince you leasing is cheaper than buying. In most instances, it isn’t. If you want to lease, fine, just don’t do it on the spur of the moment.
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Trading in your old car without knowing its value in advance
A dealership has the right to give you the least you will take for your old car. But you have a right to get the most your car is worth. To know that value, clean it up and try to sell it to several used car dealerships. The highest amount you’re offered for it is your car’s real value right now. Don’t accept less than that in trade.
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Financing automatically at the dealership
The dealership may not be the cheapest place to finance. To find out, bring a copy of the filled-out dealer contract to Elevate Credit Union and compare deals. If the dealership doesn’t give you a copy, they’re probably not the cheapest.
It is so easy to trust the dealership and everything they say but don’t. It could cost you a lot more money. Make sure you know the real value of the car and exactly what you are buying. Find out what your bottom line is. If this is all too much for you, we can help. Let us know what the offer is, and we can give you an honest evaluation. As with most credit unions, our members come first. We care about your financial health because we are in this together.
Need an auto loan? Did you know you can apply online? Check it out here: Elevate Auto Loans
