10 common car-buying mistakes By Consumer Reports
#1
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10 common car-buying mistakes By Consumer Reports
10 common car-buying mistakes By Consumer Reports provided by: Buying a new car can be exciting. But it's also a complex process through which you can end up overpaying by hundreds or thousands of dollars or with a vehicle that you won't be happy with down the road. Below are 10 mistakes that car buyers often make that can quickly turn that initial excitement into buyer remorse--and how to avoid them.
1. Falling in love with a model.
When spending tens of thousands of dollars on a car, emotion shouldn't rule the day. Becoming infatuated with a single model can blind you to alternative vehicles that may be better for your needs or make you skimp on thoroughly researching a vehicle's ratings, reviews, reliability, or safety and pricing information. A wide -eyed approach can also leave you more susceptible to a salesperson's tactics to get you to pay more than you should. To determine which vehicle is best for you, you should set emotion aside and focus on doing your homework, comparing different models, and assessing your real wants and needs. There will be plenty of time for emotion after you've bought the vehicle.
2. Skipping the test drive.
The test drive is one of the most important parts of the car-buying process. A lot of vehicles look good on paper--especially in glossy brochure photos--but the test drive is your best chance to see how a vehicle measures up to expectations and how well it "fits" you and your family. You don't want any surprises after you've bought it. That's why it's surprising that many people give vehicles only a token test or, worse, none at all. That is a mistake and a sure recipe for buyer remorse. It's critical that you take ample time--at least 30 minutes--to conduct a complete test drive and perform a thorough walk-around of any vehicle you're considering.
3. Negotiating down from the sticker price.
Don't use the sticker price as your gauge when negotiating a deal. A salesperson may offer you a deal that's, say, $500 below the sticker price, and many consumers will conclude, often mistakenly, that they're getting a good deal. Unless the vehicle is in big demand and short supply, you can often get an even lower price by negotiating up from what the dealer paid for the vehicle. When you know the dealer's true cost, you'll know how much profit margin it has to work with and can determine a reasonable target price with which to begin your negotiations. You can calculate the dealer's cost by subtracting any behind-the-scenes sales incentives, such as dealer rebates and holdbacks, from the dealer invoice price. Consumer Reports New Car Price Reports does this for you with the CR Bottom Line Price.
4. Focusing only on the monthly payment when negotiating.
Salespeople like to focus on a monthly-payment figure while negotiating a deal. Indeed, "How much were you thinking of paying each month?" might be one of the first questions to greet you when you meet a salesperson. Don't take the bait. It's the first step down a slippery slope of being manipulated with numbers and overpaying for your vehicle. Using the monthly payment as the focus, the salesperson can lump the new-vehicle price, trade-in value, and financing or leasing terms together, giving him or her too much latitude to give you a "good price" in one area while making up for it in another. Instead, insist on negotiating one thing at a time. Settle on the vehicle's price first, then discuss a trade-in, financing, or leasing separately, as necessary. A leasing tip: Don't bring up your desire to lease until after you've agreed on the vehicle's price.
5. Buying the "deal" instead of the vehicle.
Automakers have been offering a variety of attractive sales incentives in recent years, from 0% financing and hefty cash rebates to employee-discount pricing programs. These can save you money, but it's important to remember that any deal is only as good as the car that's attached to it. Just because you can get a good discount doesn't mean you should buy the vehicle. After all, you'll be living with the vehicle for years, so make sure it's the right one for you. Thoroughly research any model you're considering and check our Ratings and reviews of competitive models (see our New-vehicle Ratings comparison, available to subscribers). You may find you can get a much better vehicle for not much more money. Also check the reliability of the model (see our Reliability Ratings, available to subscribers). Despite an attractive discount, a vehicle with subpar reliability--and the possibility of hefty depreciation--might not be much of a bargain in the long run. A related tip: Don't let a special incentive keep you from negotiating. Rebates and special financing are subsidized by the automaker, not the dealership. You should still negotiate the vehicle's price as if there were no incentive. There's no reason you shouldn't get the best price and the incentive, too.
6. Waiting until you're in the dealership to think about financing.
You might be a whiz at negotiating a good deal, but if you don't choose your financing just as carefully, you could lose everything you saved on the vehicle's purchase price, and more. A car shopper who hasn't researched financing terms is especially vulnerable to being manipulated by the dealership. Not only do you only have the dealership's terms from which to choose, which are often higher than elsewhere, but dealers also often mark up the interest rate of a loan over what you actually qualify for--a tactic called "interest-rate bumping." It can cost you hundreds or even thousands of dollars more over the term of the loan. That's why it's critical to comparison shop for financing terms at different financial institutions and get prequalified for an auto loan before you go to the dealership to buy the vehicle. Check interest rates at banks, credit unions, or online financial sites to see which offers you the best rate. If the dealer can offer you terms that are better than what you got elsewhere, you can always choose that deal instead.
7. Underestimating the value of modern safety features.
Today's vehicles offer an array of advanced safety features. But many buyers don't know which are most important or what to look for when comparing vehicles. Antilock brake systems (ABS), electronic stability control (ESC), and head- protecting side air bags, for instance, are effective and well worth the money. Studies have shown that ESC can significantly reduce accidents and fatalities. The feature is especially important for SUVs, because it can help prevent rollovers. Side-crash tests show that head-protecting side air bags are critical in preventing fatalities in side impacts. Unfortunately, you can't always depend on a dealership's salespeople to give you accurate information or reliable guidance about these features. That's why you should thoroughly research the benefit of all available safety features and look for vehicles that have the ones that will best protect you and your family.
8. Buying unnecessary extras.
Dealerships often try to sell you extras that boost their profit margin but are a waste of your money. They can include rustproofing, fabric protection, paint protectant, or VIN etching, in which the vehicle identification number is etched onto the windows to deter thieves. Don't accept those unnecessary services and fees. If you see those items on the bill of sale and you haven't agreed to them, simply cross them out and refuse to pay for them. Vehicle bodies are already coated to protect against rust. And recent CR reliability surveys show that rust is not a major problem with modern cars. You can treat upholstery and apply paint protectant yourself with good off-the-shelf products that cost only a few dollars. If you decide you want VIN etching, you can buy a kit to do it yourself for less than $25, instead of the $200 that some dealerships charge. Also think twice about an extended warranty. It can cost hundreds of dollars. But if you buy a model with good reliability or if you expect to have the vehicle only for five years or less, it often isn't worth the cost.
9. Not researching the value of your current car.
You could get a great deal on your new car but lose all of the savings--and more--on your trade-in. That's why it's critical that you research the value of your current car before buying your new one. Find out what both the used-car retail and wholesale prices are, so that you'll know what you should be able to get if you trade it in or if you sell it yourself. Typically, you'll get more money by selling it, as long as you're willing to put in the additional effort. By knowing your vehicle's true value and by sticking to your price during the negotiations, you can get your car's full value, whether you trade it in or sell it yourself.
10. Not having a used car checked by an independent mechanic.
When buying a used car, condition is everything. Even the most reliable vehicle can turn into a lemon if it's poorly maintained. Before you buy a used vehicle, have it scrutinized by a repair shop that routinely does diagnostic work. A thorough diagnosis should cost around $100, but confirm the price in advance. A good mechanic should be able to tell if the car has been in a major accident or has a hidden but costly problem. Ask for a written report detailing the car's condition, noting any problems found and what it would cost to repair them. You can then use the report in your negotiations with the seller to adjust the price accordingly
#2
Go Giants
<--bookmarked.
#3
Team Owner
iTrader: (4)
A good read. I would say I focused on monthly payments this last go around. I told the sales guy what I needed the payments to be when he showed us his model. Didn't bend on down payment and my trade in. And we eventually settled a couple bucks more that I was looking to spend per month.
#6
I drive a Subata.
iTrader: (1)
Crazy Acura
#7
from my experience, you want to make sure you ask to see all the paperwork upfront. especially for CPO vehicles. salesman/manager/dealer refused to budge the last $500 i was negotiating - i wanted it for 25K, they said 25.5K. turns out, the $500 difference was some stupid theft insurance that was already on the car and they did not disclose it to me. i have full coverage through my auto insurance, why would i want to pay $500 for more theft insurance???
i'm never going to buy a car from that dealership because of this. which sucks because there's basically only one dealer in hawaii. so i guess that means i won't be buying another acura...
i'm never going to buy a car from that dealership because of this. which sucks because there's basically only one dealer in hawaii. so i guess that means i won't be buying another acura...
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#8
Drifting
i don't agree w/ number 1
I only would buy a car if I am in love w/ that model. I guess it would be good to at least consider other options, but in the end, if you love one car, you will only be happy with that car. Another car might be more 'reliable', or get better gas milage, or has more safety features, but every time you see the car you loved but passed up on the road, I think you will feel disappointed.
I only would buy a car if I am in love w/ that model. I guess it would be good to at least consider other options, but in the end, if you love one car, you will only be happy with that car. Another car might be more 'reliable', or get better gas milage, or has more safety features, but every time you see the car you loved but passed up on the road, I think you will feel disappointed.
#9
I've been guilty of 1, 3, 4, 6, 8, 9 and 10. Live and learn
#10
dɐɹɔ ǝɥʇ ʇɐɥʍ
Normally I think consumer reports is full of shit when it comes to automotive related advice, this is pretty good. In my younger years I've fallen prey to some of these tactics, now I am a better negotiator then the best dealer, being able to compute numbers in your head is a huge benefit or do your numbers homework before you walk into the dealership, know the deal you think is good, know the deal that you think is fair and run from anything else. Not ever car purchase will be a great deal, the more desirable the car the harder it will be to get a deal, in that case your best off trying to get a fair deal.
#12
Suzuka Master
I recommend bringing a calculator and running numbers yourself. You want to be able to sort things out in your head, and sometimes these guys play all sorts of tricks with the numbers so that they are tailored to what they think you are after. "oh so it's lower payments your after huh? ok let me see..if you finance with us for 9 years at an 18% rate, your monthly payments are $XXX, just what you wanted right?"
Last edited by TzarChasm; 07-07-2008 at 02:02 PM.
#13
The funny thing is when I was a teen I fell for almost every item short of not having the car diagnosed, which I did, but no longer do. It's such a hassle, and if a car is only two or three years old I feel content checking the exhaust pipe for colorful emissions when revved up, test driving and listening to the engine. I also avoid small dealerships who have little or no reputation to maintain and I've had good experiances with reliability. The serious dealerships make a very big deal out of referals and I don't believe they want to take those risks on customers.
The last time I bought a used car I resisted everything the finance guy tried to push, to a greater degree than ever before and he became a prick pretty fast, drawing marks all over a photo copy of their "special packages" and then finally writing DECLINED in big letters while barely containing his aggravation when I said no for the 50th time, and he'd say things like "I hate to see people lose money for no reason." I would have walked out or had been more harsh with him if not for the scarcety of the vehicle I was buying. It's sad that doing the right thing is in turn the most mentally stressful.
Also a lot of people have recommended getting the 3M clear bra when they buy Acuras. To my mind that's another avoidable add-on. While it's true that it works, the benefit isn't worth $800 and I'm only speculating but my guess is that's a huge markup. I don't like the thought that Acura would put shit paint on their cars in order to sell something that compensates for it. I'd rather have chips then let them win that hand.
The last time I bought a used car I resisted everything the finance guy tried to push, to a greater degree than ever before and he became a prick pretty fast, drawing marks all over a photo copy of their "special packages" and then finally writing DECLINED in big letters while barely containing his aggravation when I said no for the 50th time, and he'd say things like "I hate to see people lose money for no reason." I would have walked out or had been more harsh with him if not for the scarcety of the vehicle I was buying. It's sad that doing the right thing is in turn the most mentally stressful.
Also a lot of people have recommended getting the 3M clear bra when they buy Acuras. To my mind that's another avoidable add-on. While it's true that it works, the benefit isn't worth $800 and I'm only speculating but my guess is that's a huge markup. I don't like the thought that Acura would put shit paint on their cars in order to sell something that compensates for it. I'd rather have chips then let them win that hand.
Last edited by wackura; 07-07-2008 at 03:44 PM.
#14
Also a lot of people have recommended getting the 3M clear bra when they buy Acuras. To my mind that's another avoidable add-on. While it's true that it works, the benefit isn't worth $800 and I'm only speculating but my guess is that's a huge markup. I don't like the thought that Acura would put shit paint on their cars in order to sell something that compensates for it. I'd rather have chips then let them win that hand.
#16
I feel the need...
Originally Posted by shrykhar
...and there's big rigs tearing up the roads and spraying gravel everywhere. My bumper, hood, and headlights look like they've been used for target practice.
I used to be in the camp of: buy a car with high residual value and maintain it well. But when you factor in the cost of maintenance, detailing etc. it's almost a wash with an attractive lease deal. I may consider a lease for my next commuter paired with a low-mileage weekend fun car.
#17
The sizzle in the Steak
They should have added: Don't buy a care from the average joe salesman on the lot.
Buy the car from the fleet/internet dept. Use the internet and email to pit a dozen dealers against each other for the best price. Let the dealers beat each other to get you the best price.
My last few cars were all done this way. Total time spent at the dealer is barely an hour to "purchase and deliver" the car. No negotiation done at the dealer FTW!
Buy the car from the fleet/internet dept. Use the internet and email to pit a dozen dealers against each other for the best price. Let the dealers beat each other to get you the best price.
My last few cars were all done this way. Total time spent at the dealer is barely an hour to "purchase and deliver" the car. No negotiation done at the dealer FTW!
#18
Originally Posted by wackura
Whaaa? I've only ever heard of people getting the clear bra from the dealer.
I ended up getting a kit off eBay and doing it myself, minus the bumper and side mirrors -- those parts are VERY hard to do, and my bumper's too far gone to be saved anyway.
#19
dɐɹɔ ǝɥʇ ʇɐɥʍ
Originally Posted by Moog-Type-S
They should have added: Don't buy a care from the average joe salesman on the lot.
Buy the car from the fleet/internet dept. Use the internet and email to pit a dozen dealers against each other for the best price. Let the dealers beat each other to get you the best price.
My last few cars were all done this way. Total time spent at the dealer is barely an hour to "purchase and deliver" the car. No negotiation done at the dealer FTW!
Buy the car from the fleet/internet dept. Use the internet and email to pit a dozen dealers against each other for the best price. Let the dealers beat each other to get you the best price.
My last few cars were all done this way. Total time spent at the dealer is barely an hour to "purchase and deliver" the car. No negotiation done at the dealer FTW!
#20
Originally Posted by shrykhar
One Acura dealer I talked to had no idea what I was going on about, and the other referred me to the tint shop they use for that kind of stuff.
I ended up getting a kit off eBay and doing it myself, minus the bumper and side mirrors -- those parts are VERY hard to do, and my bumper's too far gone to be saved anyway.
I ended up getting a kit off eBay and doing it myself, minus the bumper and side mirrors -- those parts are VERY hard to do, and my bumper's too far gone to be saved anyway.
#21
The sizzle in the Steak
Originally Posted by iTimmy
I've used this technique before and it works brilliantly.
#22
Go Giants
Originally Posted by Moog-Type-S
They should have added: Don't buy a care from the average joe salesman on the lot.
Buy the car from the fleet/internet dept. Use the internet and email to pit a dozen dealers against each other for the best price. Let the dealers beat each other to get you the best price.
My last few cars were all done this way. Total time spent at the dealer is barely an hour to "purchase and deliver" the car. No negotiation done at the dealer FTW!
Buy the car from the fleet/internet dept. Use the internet and email to pit a dozen dealers against each other for the best price. Let the dealers beat each other to get you the best price.
My last few cars were all done this way. Total time spent at the dealer is barely an hour to "purchase and deliver" the car. No negotiation done at the dealer FTW!
#23
dɐɹɔ ǝɥʇ ʇɐɥʍ
Originally Posted by Whiskers
How soon before purchase would you suggest doing this?
#24
Go Giants
^ Done and done..My spam box is hurting though...
#26
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Originally Posted by Moog-Type-S
They should have added: Don't buy a care from the average joe salesman on the lot.
Buy the car from the fleet/internet dept. Use the internet and email to pit a dozen dealers against each other for the best price. Let the dealers beat each other to get you the best price.
My last few cars were all done this way. Total time spent at the dealer is barely an hour to "purchase and deliver" the car. No negotiation done at the dealer FTW!
Buy the car from the fleet/internet dept. Use the internet and email to pit a dozen dealers against each other for the best price. Let the dealers beat each other to get you the best price.
My last few cars were all done this way. Total time spent at the dealer is barely an hour to "purchase and deliver" the car. No negotiation done at the dealer FTW!
#27
Senior Moderator
Originally Posted by iTimmy
or do your numbers homework before you walk into the dealership, know the deal you think is good, know the deal that you think is fair and run from anything else.
You should basically know what your out of pocket expenses are going to be... Example... "If you can take my trade and 17K out of pocket, we can do a deal today".
#28
Originally Posted by Moog-Type-S
They should have added: Don't buy a care from the average joe salesman on the lot.
Buy the car from the fleet/internet dept. Use the internet and email to pit a dozen dealers against each other for the best price. Let the dealers beat each other to get you the best price.
My last few cars were all done this way. Total time spent at the dealer is barely an hour to "purchase and deliver" the car. No negotiation done at the dealer FTW!
Buy the car from the fleet/internet dept. Use the internet and email to pit a dozen dealers against each other for the best price. Let the dealers beat each other to get you the best price.
My last few cars were all done this way. Total time spent at the dealer is barely an hour to "purchase and deliver" the car. No negotiation done at the dealer FTW!
#29
Originally Posted by 808havok_tsx
again, this only works if there are multiple dealers in the area. i'm SOL since there's only one on the island...
#30
Originally Posted by wackura
Maybe you can secretly pit salesmen against eachother. Call one salesmen using one name and another using another name. BTW one of the Hawaii salesmen in an Azine member, his screen name is "Colin".
#31
Senior Moderator
Thread Starter
Originally Posted by iTimmy
2-3 weeks before purchase, this way they can find the exact car you want. It is very important to know EXACTLY what you want before you send of the messages, trim level, colors, options, etc... Then create one email and mass email all the dealers the same letter, don't BCC the message either let them know they are in competition with each other. On a common vehicle, i.e. something that is not super hard to find, it will get you below invoice pricing.
I disagree with 2-3 weeks. I find it they will be more aggressive with pricing if you are ready to buy the same day.
So typically I will email in the morning and mention that im willing to buy today to the first dealer to agree to my price. Of course my price is normally so low that most dealers wont call me back. But out of 5 at least 2 will.
Worst case is they dont have your exact car and they have to trade another dealer. Or they order you one. Either way they want that sale that day. IMO
#32
Originally Posted by Whiskers
How soon before purchase would you suggest doing this?
I bought mine (06 TL) without ever sitting in it, let alone going on a test drive. Then again, I research the crap out of everything I buy.
After pouring over this site and others, and all the Consumer Reports and other car reviews, the TL won hands down in every category.
I finally narrowed it down to two dealers and they pitted themselves against each other. After I had the "we will not be beaten on price" dealer dropping below the price that the dealer close to my house offered, I took that back to the one I wanted to get if from and they went even lower again.
Had them fax over a purchase order, took it to my credit union, and went to the dealer with the check to finally meet them and pick up the car. Sweet.
#33
Go Giants
I'm buying in three weeks so its good timing..
#34
Drifting
Originally Posted by 808havok_tsx
yeah. unfortunately, the sales guy that handles internet sales was a newbie and like i said in a previous post, did not disclose the theft insurance cost to me. so far, i've been completely underwhelmed by acura's sales and service... i guess being the only game in town gives you that kind of freedom? *shrugs*
Part of the reason for me buying a scion is cause of their 'no haggle' pricing. Although I'm sure it's hard to haggle on any car that costs 14k, but I was just happy not to be paying an "island premium".
I also got pissed off at one dealership cause the internet sales guy wouldn't get back to me. So finally I went down there and just mentioned that I tried emailing, and after that no one else would help me cause they weren't 'allowed to step on other people's buisness'. They didn't seem to understand that the only reason I came down there was cause I was already unhappy with the internet guy's service. So they spent like an hour looking for the guy, and finally I got someone else to show me a bunch of cars I wasn't interested in. After like an hour and a half, I find out they didn't even have the car I was interested in.
#36
dɐɹɔ ǝɥʇ ʇɐɥʍ
Originally Posted by Crazy Acura
I disagree with 2-3 weeks. I find it they will be more aggressive with pricing if you are ready to buy the same day.
So typically I will email in the morning and mention that im willing to buy today to the first dealer to agree to my price. Of course my price is normally so low that most dealers wont call me back. But out of 5 at least 2 will.
Worst case is they dont have your exact car and they have to trade another dealer. Or they order you one. Either way they want that sale that day. IMO
So typically I will email in the morning and mention that im willing to buy today to the first dealer to agree to my price. Of course my price is normally so low that most dealers wont call me back. But out of 5 at least 2 will.
Worst case is they dont have your exact car and they have to trade another dealer. Or they order you one. Either way they want that sale that day. IMO
#37
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1. if i don't love a car i won't buy it. if we didnt have an emotional attachment to a car we wouldn't be here.
2. i test drive the car like i'm going to drive normally. i can also tell quite a bit about most cars in about 5 minutes. the smells and feel of the fluids are important also.
3. i usually have an idea what i am going to spend before buying. i will spend months looking for cars and the best prices.
4. i never tell them what i want to spend a month
5. again i already know my price, if i don't get it, i don't buy it
6. i always have my check in hand from the credit union. this eliminates some time from being in the stealership
7. i think we are all pretty informed here on safety
8. i never buy a warranty, ever
9. i check e-bay and try to pay below private party at a dealer and try to pay would like to pay less than private party for a for sale by owner
10. i am the mechanic, but even i can miss something. when i buy my porsche i will most def take it somewhere for a couple hundred $$
2. i test drive the car like i'm going to drive normally. i can also tell quite a bit about most cars in about 5 minutes. the smells and feel of the fluids are important also.
3. i usually have an idea what i am going to spend before buying. i will spend months looking for cars and the best prices.
4. i never tell them what i want to spend a month
5. again i already know my price, if i don't get it, i don't buy it
6. i always have my check in hand from the credit union. this eliminates some time from being in the stealership
7. i think we are all pretty informed here on safety
8. i never buy a warranty, ever
9. i check e-bay and try to pay below private party at a dealer and try to pay would like to pay less than private party for a for sale by owner
10. i am the mechanic, but even i can miss something. when i buy my porsche i will most def take it somewhere for a couple hundred $$
#38
It's not hard at all to calculate a payment on a TI-86 or similar model...I've done this before and knew what the payment was down to the penny before he got back in the room.
They always try to chisel an extra few bucks a month out of you by rolling the title/registration/doc fees into the financing. I always insist on paying for these separate and out of pocket...no point in potentially paying 4-6 years of interest on one-time crap fee's like that, even if they are legit.
They always try to chisel an extra few bucks a month out of you by rolling the title/registration/doc fees into the financing. I always insist on paying for these separate and out of pocket...no point in potentially paying 4-6 years of interest on one-time crap fee's like that, even if they are legit.
#39
Oh and dealers can usually get interest rates that are just as competitive as anything you could get yourself. As long as you know what a good rate is in your area (do a little shopping of course) there's nothing really wrong with using one of the banks the dealer steers your towards. A rate is a rate whoever is doling the moneys out, and often a local dealer will already work with local credit unions offering great rates
Last edited by Brandon24pdx; 07-08-2008 at 06:21 PM.
#40
Originally Posted by Osamu
yea sucks there is only one dealership. Did you have to pay any premium on you car? I've heard of dealerships quoting almost 6k over MSRP on a 25k car just cause they know they can get away with it.