10 Common Car Buying Mistakes to Avoid

Buying a car is a major financial decision. Whether you’re buying a new or used vehicle, knowing what to avoid can help you save money and choose a vehicle that fits your budget.

Before you start shopping, watch out for these 10 common car buying mistakes.

1. Not Setting a Budget

Before looking at cars, decide how much you can comfortably afford. Remember to include insurance, gas, maintenance, repairs, taxes and registration, not just your monthly payment.

2. Focusing Only on the Monthly Payment

A low monthly payment doesn’t always mean a better deal. A longer loan term can lower your payment but may cause you to pay more interest over time. Compare the APR, loan term and total cost of an auto loan.

3. Skipping Your Research

Research the vehicle’s price, reliability, fuel economy, safety ratings and maintenance costs. Comparing similar vehicles can help you determine whether you’re getting a competitive price.

Vehicle Buying Checklist

4. Waiting to Find Financing

Don’t wait until you’re at the dealership to think about financing. Getting pre-approved for an auto loan can help you know your budget and give you an offer to compare with dealership financing.

5. Not Comparing Auto Loan Rates

Different lenders may offer different rates and terms. Compare auto loan rates, terms and fees before deciding how you’ll finance your vehicle.

6. Skipping the Test Drive

Always test drive a vehicle before buying it. Check its comfort, visibility, handling, braking and features. When buying a used car, consider having it inspected by a trusted mechanic.

7. Forgetting About Additional Costs

The sticker price isn’t always the final price. Taxes, registration, dealer fees, warranties and add-ons can increase the cost. Ask for the out-the-door price before you agree to purchase

8. Making an Impulse Purchase

Don’t let the excitement of buying a car rush your decision. Take time to compare vehicles, prices and car financing options before signing.

9. Not Researching Your Trade-In

If you’re trading in a vehicle, research its current value first. Knowing what your vehicle is worth can help you evaluate the trade-in offer and determine how much equity you have.

10. Not Reading the Fine Print

Before signing your purchase or loan documents, make sure you understand the interest rate, loan term, monthly payment, fees and total amount you’ll repay. Ask questions about anything you don’t understand.

Car Buying Checklist

Before buying your next vehicle:

  • Set a realistic budget
  • Research the vehicle and its price
  • Compare auto loan rates
  • Get pre-approved for financing
  • Test drive the vehicle
  • Check the total purchase price
  • Research your trade-in value
  • Read all paperwork before signing

Ready to Finance Your Next Car?

A little preparation can make the car-buying process easier. Mutual Savings Credit Union offers auto loan options to help you finance your next vehicle.

Explore our auto loans today and get started on your next car purchase.