Getting a great vehicle at the best price possible is arguably the biggest goal to any car shopper. But did you know that you could be making mistakes in the process that are causing you to spend more money in the process? Today, we’re talk about the car buying mistakes you might be making that end up costing you money.
Buying New Instead of Used
It’s no secret that a New Vehicle will be more than a Used Vehicle but do you know how much more? Reserch has shown that immediately after purchasing a new vehicle it will lose approximately 10% of its value! Ouch – that 10% already sounds painful but the depreciation has just begun. Within the first year of owning it, that new car will lose an additional 10% and leave you driving a car, truck, minivan or SUV that’s worth 20% less than what you paid for it. If you plan on driving that same car over the next 5 years, you can expect to lose 60% of your initial investment when you go to resell it.
Leasing Instead of Buying
Leasing a vehicle instead of purchasing may be the best option for some but for the majority of people, it’s a money losing move. The most common expense incurred from leasing a vehicle has to do with the frequent mileage caps placed on the terms of the lease. Typically, drivers are allotted between 10,000-15,000 miles per year but what drivers may forget is that they will be charged anywhere from 10¢ and 30¢ per mile on the overages! That adds up fast and could mean you end up paying hundreds if not thousands at the end of your lease with no vehicle at the end to show for it. In addition to mileage fees, leaser’s can end up paying for any damage to the vehicle that is considered outside of normal wear and tear. Dealerships have different definitions of what is considered normal and our advice is to find out ahead of time what conditions are being placed on your lease before signing on the dotted line or you could be flipping the bill to have it repaired.
Being Stuck on One Model
When you limit yourself to only one kind of make or model vehicle, you not only take away a lot of buying options but some of your bargaining power at the same time. By opening up your mind to a variety of possible models that fit your criteria, you can focus on other factors like price, mileage and warranty coverage.
Too Short a Test Drive
Test drives are time for you to evaluate how a car handles and if it truly works for your needs and lifestyle. Things to take into consideration that can easily be missed are… blind spots, ease of getting car seats in and out or if the front seats can sit far enough back to ride comfortably when a car seat is properly in place, how it drives on both the highway and side streets, and even how easy it is to park. Give yourself plenty of time to consider where you’ll be driving this vehicle, who will be riding in it and what the predominant use of the vehicle will be to decide if it’s the right vehicle for you before signing on the dotted line.
Not Understanding Financing
Many used car dealerships, unlike Broadmoor Motors Hastings, add points to your financing in order to make more money on the sale of the vehicle. With the average markup of interest being 1.8%, that small amount can make a big difference in your long term cost of the car. Make sure you understand all aspects of your financing before signing on the dotted line including interest rate, length of the loan and any unnecessary fees that might have been added to the terms. Financing contracts are binding and you’ll find yourself with little recourse after the fact. Working with a trusted, reputable dealership who offer transparent financing with many local credit unions and banks like Broadmoor Motors Hastings can help alleviate any undo risks and concerns.
Buying The Wrong Vehicle
If your commute is long or you do a lot of city driving, buying a car that gets better gas mileage might be more advantageous. On the other hand, if you need a vehicle to haul items or a lot of people, a truck or suv might be a better fit. Understanding your needs before you even begin your vehicle search can save you a lot of unnecessary headaches, time and money. Questions to ask yourself how much space you need, what you’ll predominantly be using it for and if you can truly afford the overall cost of owning the vehicle (gas, insurance,payment).
Shopping at the Wrong Dealership
It seems like a no brainer to us, but buying from a dealership you can trust means at the very least that you’ll be buying a reliable vehicle and knowing that you got the best price on it in the process. While many buyers take the time to research the safety and reliability of a car, they often overlook doing checking out the dealer they’re interested in purchasing that very vehicle from. Today’s world of online reviews makes it that much easier to see what past customers have said about their experience and can give you a better feel for the environment you’ll be walking into. Broadmoor Motors Hastings prides itself and giving our customers an incredible, pressure-free shopping experience and we encourage everyone to check out our Reviews on Google.
At Broadmoor Motors, we want to help you find the right car for your needs, your lifestyle and your budget. We specialize in finding the right used minivan, truck, SUV or car to fit your personal or business needs, all while giving you the best deal we can on both your purchase and trade in. Our family has been in the car business for over 60 years and continues to be family owned and operated in both our Hastings and Caledonia locations with financing available to those who qualify, and we will find you the right vehicle to fit both your budget and your needs.
Let Broadmoor Motors Hastings save you time and money when buying your next quality, Pre-Owned Car or Work Truck and on your next Car Rental. Whether you need a short term car rental, long term car rental, a replacement while your vehicle is getting serviced or simply need to replace your car, minivan, truck or SUV with a great used vehicle, we can help you out. Broadmoor Motors Hastings is here for all your Car Rental, Car Sales, and Auto Service needs in the greater Barry County area, Hastings, Middleville and Caledonia. Give us a call at 269.320.6304 in Hastings or 616.698.9595 in Caledonia to see how we can get you back on the road!