Updated: Friday, 16 Nov 2012, 9:52 AM EST
Published : Monday, 19 Nov 2012, 1:00 AM EST
Grand Rapids, Mich (WOTV) - How much money do you think educated car buyers can save over uneducated buyers for the same car? Would $5,000 get your attention? While you may not save as much as $5,000, you can save so much just by avoiding some of these classic car-buying errors …
1. Showing too much enthusiasm – acting excited lets the seller know they have the unique product you want, sending the price up immediately. Keep it in check until you get home.
2. Buying in a hurry - If you buy on your first visit to the dealership, you don’t have time to compare. Take your time and be willing to walk away. Chances are that the vehicle on that particular lot being “one of a kind” is very low.
3. Giving deposits before the dealer approved your offer – feel free to give a deposit, but only if you really want the vehicle … but not until the boss has said ‘yes’ to your offer.
4. Being switched to leasing without doing your homework – In most instances, leasing is not cheaper than buying. Leasing works in a few situations but for most typical consumers, buying is the best option. Times to consider a lease is if you plan on always having a car payment and plan to drive a very minimal amount each year. Be aware of the total costs, including residual value, mileage limitations and taxes.
5. Trading in your old car without knowing its value in advance - A dealership has the right to give you the least you will take for your old car, but you have a right to get the most it’s worth … check out Kelley Blue Book, or NADA or Edmunds for new and used car valuations.
6. Waiting until going to the dealership to think about financing – your credit union may be the place with the best loan rates. It’s always best to get pre-approved before shopping, or simply ask to work with First Community FCU when you’re at the dealership!
Topics are intended to be general and informational in nature and should not be construed as legal advice. Each person’s individual situation is different; members should consult a legal professional related to legal matters.