Ten Common Mistakes People Make at the Car Dealership

When a buyer is buying a used car or new car, there are several mistakes that a buyer commits while he is dealing with the dealership.

1.       One should know exactly what you want

Before one goes to the dealer, the buyer should have a clear perception of what they want. The type of car they require, the car, the model etc. One should do an extensive homework first before going to the car dealership. Walking inside the store with no idea of their actual wants can lead to a real bad buy.

2.       One should take a test drive

There are many buyers who do not believe in taking the test drive. This is a must step that one should not skip. In a test drive, there are several things that one gets to know about the vehicle.

3.       One should negotiate on the basis of the ex showroom price of the vehicle and not the sticker price.

The buyer should first investigate about the vehicle, its manufacturing price and then see how much the dealer is charging for the vehicle. In this way the buyer will be able to strike a better deal.

4.       Do your own financing

Do not rely on the dealer to fix the financing of your vehicle. Usually a dealer proposes to fix because he will get a percentage from it. The buyer will land up spending more money than the actual amount.

5.       Do not pay in a monthly basis

Often we are attracted towards this monthly basis scheme, thinking that we can pay for the amount over a long time slowly and steadily. The dealer also proposes this idea to the buyer because in this way the buyer pays much more money than the actual amount. Hence it is advisable to pay the amount at one go or maximum in two instalments.

6.       If you feel the deal is not good enough then do walk away.

There are dealers who offer attractive proposals on the vehicles. The deals last for 24 to maximum 72 hours. See the deal and if you feel something is fishy do walk away. These are often loops created by the dealer to sell of a vehicle where maybe there is slight or major damage or some other thing. Usually the dealer will put such offers up only when they want to get rid of the material as soon as possible.

7.       One should not discuss trade in too early.

There are times when a buyer wants to sell old vehicle at a better price than the dealer.

8.       One should go to different dealers

There are many buyers who go to just one dealer and finalise the deal and purchase from there. This often leads to a loss. One should visit at least 3 to 4 dealers and see the ex showroom price and then consider the lowest one and negotiate accordingly.

9.       One should always insure

Insurance of the vehicle is very important.

1.   One should always question the dealer well on the extras.

When you are buying a vehicle and you have decided to sign the dotted lines, the dealer often forces upon the extras and charges a hefty amount. The buyer should say no as these extras or add ons he can easily get from the market at a much cheaper rate.