Car-Buying Mistakes and How to Avoid Them!

Buying unnecessary add-ons
Things like rust-proofing, VIN etching or fabric protector are unnecessary. Research features you do want online and print out the info before heading to the dealer. Also, price several different variations in case the dealer doesn't have the exact model you want.

Not enough cross-shopping
On average, people only shop about three vehicles. If someone's shopping a mid-sized car, there are probably at least 10 different vehicles that would meet their exact specifications and needs. In terms of safety, reliability and features, there are very few lemons for sale anymore. Cast a wide net when comparing models online.

Settling for whats on the lot
Don't be impatient. Only5% special-order a vehicle through a dealer and wait for it to be delivered. The others either find exactly what they want on the lot, or settle for something that's not quite what they wanted. There's no reason to do that when making such a large purchase. They can also custom-order exactly what you want from the factory.

Skipping the test drive
The recommended time spent driving the car is half an hour. While on the tour, enter and exit a highway, take it on roads like those you drive every day. Be sure to take competing models for a spin, too.

Focusing on the monthly payment
One of the first questions salespeople ask is, "So, how much were you looking to spend per month?" It's to your benefit not to focus on that number, because doing so can make the final price of the car a moving target. Adding "only $50 a month" to get leather and more power might sound tempting, but it will add thousands to the bottom line.

Buying more care than you need
If you end up buying a V8-powered pickup truck when all you need is a four-cylinder commuter car, well, you are your own worst enemy in that case.

Telling the salesman you have cash
This might seem like a power play, but it is usually not. This let's them know they won't be making any money in the loan department, and could make them less willing to negotiate the price of the car as they seek to maximize their profit. First negotiate the final price of the car, and then tell them you will pay in cash.

Being clueless about financing
Learn your credit score and find out from several banks or credit unions what kind of rates you can get on a car loan before you go to the dealer. Then you'll know if the financing terms that the dealer offers are worth taking, or whether to fall back on another loan.

Negotiating without knowing what you're doing
Before you set foot in a dealership, go online and research the prices of vehicles you're considering. Not just the manufacturer's suggested retail price (MSRP), but the invoice price, which is what the dealer pays for each car. Also look up consumer rebates, direct-to-dealer incentives and dealer holdbacks, which are a percentage of the invoice price that dealers sometimes get back from the manufacturer.

Fumbling on the trade-in
Understand the value of your trade-in before you go to the dealership by looking it up on websites such as MSN Autos or KBB.com. Once at the dealer, negotiate the trade-in only after you have settled on the price of the new car. If a dealer asks upfront about a trade-in, focus his attention back on the process at hand, whether that is selecting the car or negotiating its price.

Found on msn.ca