8 Common Car Buying Mistakes to Avoid

Buying a new vehicle is a big decision. The last thing you want is buyer’s remorse a week or month down the road. Mountain America Credit Union has made it easier to ensure you choose the right vehicle and the right deal for you. Here are some key points to consider:
 

1. Not researching online
With all the information online now, it's so easy to do your own reasearch. Websites such as NADA, Kelley Blue Book, Cars.com, Edmunds and AutoSmart provide free reviews and owner ratings on just about every vehicle. Once you’ve found something you like, get the Vehicle Identification Number (VIN) and plug it into a car history search site such as AutoCheck to get detailed information.
 

2. Not reviewing your credit before shopping
Know the state of your credit before you go shopping to make a better-informed decision. Get a free copy of your credit report annually and, if you find inaccurate information, correct it before you go to the lot.
 

3. Negotiating from the monthly payment instead of the full purchase price
While it's important to know what you can afford each month, revealing this information to a salesperson too early can limit your negotiating power. Focus on the full purchase price instead.
 

4. Agreeing to dealer financing too quickly
Dealer financing can be convenient and sometimes the best option, but it's essential to shop around to ensure you're getting the best deal. Compare offers from different lenders before making a decision.
 

5. Not taking the shortest loan term
Cars depreciate astonishingly fast. If you can afford it, opt for a shorter-term loan to minimize interest over the life of the loan.
 

6. Not doing the math
When you’re comparing dealer offers, do the math for each scenario before making a decision. If you don’t have confidence in your math skills, use an auto loan calculator to help.
 

7. Financing the cost of add-ons
Add-ons may look shiny and pretty, but they are essentially anchors that weigh down your loan and end up costing more than they’re worth. Adding these accessories after you purchase the vehicle is usually a much better financial decision.
 

8. Not being able to walk away from a deal
Just because an offer has been made doesn’t mean you have to take it. You always have the option to negotiate. Know what you want to spend before you go and stick to it. If the seller doesn’t want to meet your price, be prepared to walk away.