EXPERT CAR BUYING Advice: 2023 - Top 10 Auto Tips = BEAT CAR DEALERSHIPS - "13 Car Buying Mistakes"

Summary

Kevin Hunter shares expert tips on how to avoid common car buying mistakes and get the best deal. He emphasizes the importance of proper research, financing through your own bank, getting your car inspected, and carefully reviewing contracts. Key advice includes knowing your trade-in value, setting a realistic budget, and not rushing the purchase. He also warns about hidden fees and unnecessary add-ons during the deal. Hunter’s step-by-step approach equips savvy buyers with the tools to navigate dealerships with confidence, ensuring they don’t get taken advantage of.

Takeaways

• 😀 Start by getting pre-approved for financing from your bank or credit union before you begin car shopping. This gives you a clear budget and helps during negotiations.
• 😀 If you have a trade-in vehicle, gather all the details and call multiple dealerships for appraisals to ensure you're getting a fair value.
• 😀 Narrow down your car options by researching prices and models online. Ensure your choices fit within your pre-approved budget.
• 😀 Test drive cars without the intention of buying right away. Take notes on the pros and cons of each car, and make decisions based on facts rather than pressure.
• 😀 Always check with your insurance agent before making a purchase. Verify the potential insurance rates for your preferred cars to avoid any unexpected cost hikes.
• 😀 Before returning to a dealership, ensure you have all necessary documents like your driver's license, insurance details, and down payment for financing or cash purchase.
• 😀 Schedule a mechanical inspection of the car you're interested in. A trustworthy dealer will have no issue with this, and it’s an important step for peace of mind.
• 😀 Present your car deal clearly, including the trade-in value and sale price you're willing to accept. Be firm and avoid unnecessary negotiations.
• 😀 Be cautious in the finance office. Many additional charges or add-ons may be presented, such as extended warranties, insurance, and other products. Most of these can be declined.
• 😀 When signing the final deal, carefully review the documents. Watch for hidden fees like high document charges, gap insurance, or unnecessary add-ons, and make sure everything aligns with what was agreed upon.

Q & A

Why is it important to get pre-approved for financing before going car shopping?

Getting pre-approved for financing ensures you know your budget and what you can afford, preventing you from being swayed by dealers into spending more than you can manage. It also eliminates the need for financing discussions during the negotiation process, saving time and potential frustrations.

What should I do if I want to trade in my car?

Start by gathering all details about your car, including the year, make, model, and trim level. Assess its condition honestly on a scale of 1 to 10, then contact multiple dealers for an appraisal. Compare trade-in offers with private party sale prices to ensure you're getting a fair deal.

How can I narrow down my car options when shopping?

Use online resources to research different makes and models within your price range. Compare their prices and features, and check how they fit within your pre-approved financing budget. This helps ensure that you're not looking at cars outside your financial capacity.

What should my goal be during the first day of test driving cars?

The goal on the first test-driving day is to learn about the cars you're interested in and narrow down your choices. Do not buy anything on this day. Instead, focus on experiencing different vehicles, taking notes, and having discussions about what you like and don’t like.

Why is it important to check insurance rates before purchasing a car?

Insurance rates can vary significantly depending on the make, model, and age of the car. By checking rates in advance, you avoid surprises that could impact your overall budget, especially if the insurance cost ends up being higher than expected.

What should I do before returning to the dealership to finalize a car purchase?

Make sure you have all necessary documents, such as your driver’s license, insurance information, and payment method (either cash or the pre-approved financing). If you plan to pay in cash, keep it a secret until the finance office to avoid unnecessary pressure or upselling.

Why is it necessary to get an independent mechanic to inspect the car you're buying?

A mechanic can identify hidden issues with the car that the dealer might not disclose. If the dealer is unwilling to allow the inspection, it's a red flag, and you should consider moving on to another dealership.

What is a reasonable approach when presenting your car deal to the dealer?

Be prepared with a clear, written deal that includes your price, trade-in value, and financing terms. Present the deal without lengthy explanations or negotiations, and set a firm deadline for them to meet your offer. If they refuse, don’t hesitate to walk away.

What should I be cautious of during the finance office process?

Be aware of additional fees and products that the finance office may try to sell you, such as extended warranties, gap insurance, or accessory add-ons. These can inflate the overall cost of your purchase, so carefully review everything and reject anything unnecessary.

Can I cancel or refinance parts of my car deal after signing the contract?

Yes, many elements of the car deal, such as added insurance or unnecessary products, can be canceled even after the contract is signed. Additionally, if you feel you were overcharged on the interest rate, refinancing is an option that could save you money in the long run.