Car shoppers have access to more resources than ever to assist them in finding the perfect vehicle at the right price. However, mistakes can easily occur when emotions or time constraints take over. Edmunds’ experts have identified the five most common mistakes made by car buyers and suggest ways to avoid them.
One prevalent mistake is trading in a vehicle with negative equity. This occurs when the car owner owes more on their current loan than the car is worth. A recent report from Edmunds showed that nearly one in four consumers who financed a new vehicle purchase with a trade-in in the second quarter of 2024 were in this situation. To prevent this, experts recommend keeping the current car longer and paying off the loan to avoid rolling over the negative equity into a new loan.
Another mistake is rushing into a vehicle purchase without proper research. Despite urgent needs like a totaled or irreparable vehicle, taking the time to understand new automotive features and gather multiple quotes can save buyers from making hasty decisions. Even if in need of immediate replacement, temporary transportation solutions can prevent costly mistakes.
Limiting the search to just one dealership is a common error, typically driven by the urgency to find a replacement quickly. It’s vital to explore various options and leverage dealers’ competition by sharing quotes transparently. This way, buyers can benefit from dealers striving to offer the best deals.
Confusion over dealership pricing is another pitfall for some buyers. Salespersons may overwhelm customers with multiple numbers, making it crucial to conduct market research on the desired vehicle before negotiations begin. Focusing on the out-the-door price and trade-in value while being cautious of unnecessary add-ons can prevent distractions from securing the best deal on the vehicle itself.
Edmunds emphasizes the significance of taking time to explore all options and carefully assess the terms of a car deal as it can lead to substantial savings. By avoiding rushed decisions, buyers can make informed choices and ensure a more satisfying and cost-effective purchase.
