• Home
  • GET THE BOOK
  • Start Here
  • Blog
  • Free Resources
  • Shop TBM
  • Courses

The Budget Mom

Real Women. Real Life. Real Finance

  • Home
  • Products
    • Live Rich Planner
    • Budget By Paycheck
  • Blog
  • FREE RESOURCES
  • COURSES
  • GET THE BOOK
  • Shop TBM

A life you love on a budget you can afford.

Here on TBM®, I provide you with simple, easy-to-follow solutions to help you budget your money, pay off debt, save more, and crush your financial goals. But more than that, I give you the tools to start doing the things that matter most to you, on a budget that actually works!

9 Common Car Buying Mistakes to Avoid

October 27, 2022
Budget Tips

Share
Pin12
Share
Tweet
Email
12 Shares

If you’re on the market for a car, being a savvy shopper can save you money, headaches, and unnecessary stress. Here’s what you need to know!

The average car payment is higher than ever, though the exact figures vary depending on who you ask. The median monthly payment is $644 according to Credit Karma, though Moody’s says it’s skyrocketed to $712 a month.

While the specific numbers may vary, one thing is certain: There’s no need to stretch your budget more than you have to.

Even used cars are more expensive than ever! There’s no telling how long this red-hot car market will last. And sometimes you can’t help when you need to buy a new car (maybe your old car is totaled or the repairs are worth more than the cost of the car itself). 

If you’re in the market for a car, being a savvy shopper can save you money, headaches, and unnecessary stress. 

Here are key mistakes to avoid when buying a car:

Mistake #1: Purchasing the wrong vehicle for your situation.

Everyone has their dream car, but don’t forget there’s a time and season for everything. Instead of purchasing a car based on your wants, focus on your family’s needs. Consider the following:

  • What’s your lifestyle? Are you athletic? For example, will you be driving the vehicle to and from trail runs? If so, then you might want to consider something that can handle some wear and tear. Will you be bringing the kids to sports games? What about long road trips? Be sure to factor in all of these considerations!
  • What’s your gas budget? There are many costs associated with vehicles that are more than just your monthly car payment, so be sure to factor in the gas efficiency of the vehicle. The same logic also applies if you decide to go electric. 
  • What’s the purpose of the car? Yes, vehicles should take you from point A to point B, but beyond the obvious, what is the exact purpose of the car? Is it for your spouse to drive to work? Is this the car you’ll be using to bring the kids to school? Is this for long road trips? Knowing your specific transportation needs will help inform what kind of vehicle you should be shopping for!

By answering these questions, you will be car shopping with a purpose. This will help you narrow down your options so that you can focus on the best deal for your needs!

Mistake #2: Shopping only at a single dealership.

Having “other options” will give you leverage in virtually every negotiation.  

Think about it: There’s a reason why most big box retailers price match each other as well as online sellers such as Amazon. It’s because they don’t want to lose your business to one of their competitors. 

Similarly, shopping around at multiple dealerships will make you aware of the best deals. Even if a dealership doesn’t negotiate or price match a competing dealership, you’ll have other options so you can get the best deal for you. 

Furthermore, shopping around is a form of research. You’ll better understand the fair market value for specific makes and models in your region. If a dealership is overcharging or has shady practices, it’ll be more apparent because you’ll have a strong understanding of the lay of the land in your local market.

Mistake #3: Folding under pressure.

Salespeople, especially at car dealerships, have a wide array of psychological tools they use to get you to sign your name on the dotted line to close the deal. Some of these high-pressure tactics are obvious, but others pull the strings of our subconscious.

To avoid folding under pressure, prepare yourself with these tips:

  • Know your budget and stick to it.
  • If it sounds too good to be true, it probably is.
  • Be skeptical of “Today and today only” offers.
  • Remain firm when the salesperson gets pushy.
  • It’s okay to say, “No” and walk away.

If you have a hard time saying, “No” to people, a good psychological trick is to pretend that you’re an actor playing a character. This can take pressure off of you personally as you navigate the transaction and negotiate with people who want you to pay the highest price possible.

Mistake #4: Being rude to the care salesman.

While you want to be firm and avoid folding under pressure, don’t overcorrect by being cold and rude. At the end of the day, you want the salesperson on your side. Someone who personally likes and respects you is going to be more willing to cut deals and negotiate with you. 

However, if they perceive you as cold, rude, or difficult, they’re going to be less likely to give you a favorable deal. 

So while you’re being firm and sticking to your budget, it’s always important to remain polite and professional. The way you treat the salesperson is usually how you’ll get treated in return.

Mistake #5: Banking on the dealership for financing.

Yes… you can finance at the dealership, but that doesn’t mean that you should. 

In some cases, a dealership may offer you a better deal on the sticker price and throw in some “freebies” if they know you’re going to finance with them. Why? Because while they’ll lose the money upfront, they’ll recoup it and more through the interest you pay on the financing terms with them.

With that being said, it’s usually better to finance through a bank, especially a local bank that you already have a relationship with.

That’s not to say that all dealerships can’t or don’t offer good deals. Some do. But similar to shopping around for the car itself, it’s also important to shop around for good financing deals. Again, this helps ensure that you’re getting the best terms and keeps you aware of what’s normal in your market.

Mistake #6: Buying the “deal” instead of the vehicle. 

Don’t forget: If an offer sounds too good to be true, it probably is. 

Dealerships love throwing together packages, deals, and adding in freebies to sweeten the deal. These are just some of the tools in their arsenal to try to get you to seal the deal, especially if you’re on the fence. 

Some of these deals come in the form of incentives. For example, you may hear about 0% financing or cash rebates on certain vehicles. 

But remember that the deal is only as good as the vehicle it’s attached to. If you suddenly find yourself being swayed by a good deal, take a step back and reevaluate the larger picture. Is the deal for the car you actually need and want?

And even if there is an incentive, that doesn’t mean that you can’t negotiate. Always negotiate the price. Most of these incentives, such as rebates, come from the car manufacturer, not the dealership. 

Mistake #7: Not asking for an independent inspection.

If you’re purchasing a used car, you have the right to know everything about it. Has it been in any accidents? Did the previous owners properly keep up with maintenance? Was it driven in ice, snow, or through floodwaters?

Knowing these things can help stop you from purchasing a “lemon.” You should be able to ask a qualified, independent mechanic to inspect under the hood and make sure that everything is ok. Also, it’s best practice to ask for a Carfax report so you can have a written record of the car’s history.  

Mistake #8: Not doing a driving test.

Thanks to technology, more and more places are trying to streamline the purchasing process. You may even be familiar with brands such as Carvana that have “car vending machines.”

Making the purchasing process more efficient is a great thing, but there’s at least one area where you shouldn’t cut any corners: Test driving the car.

Not only will this help you get a feel for the quality of the car, but this will be a preview of what life with the car will actually look like. So when you’re doing the test drive, be sure to drive it how you usually would in real life. For example, if you drive on the highway to get to work, as if you can test drive the car on the highway? Similarly, if you do a lot of city driving, then you’ll want to drive around various city blocks and see if the way the car drives is something that you want to commit to. 

Mistake #9: Failing to negotiate.

It can feel like the dealership has all the power, but as the buyer, the power is truly in your hands. Remember that it never hurts to ask… so ask for that lower price, ask for the add-on, or ask if there are any ongoing incentives. 

When you ask, don’t do so from a place of need. Instead, ask with confidence.

After all, the dealership needs your business in order to profit and stay in business.

And if the dealership isn’t willing to negotiate and you’ve found a better deal somewhere else, don’t be afraid to say “no” and walk away. Do yourself a favor and shop with discipline. It might feel awkward or uncomfortable, especially if you have an agreeable personality, but your budget will thank you later on!

Have more questions about budgeting for a car purchase? Join the TBM Family on Facebook to participate in an excellent exchange of ideas!

Share
Pin12
Share
Tweet
Email
12 Shares

Filed Under: Tagged With: CAR, CAR BUYING MISTAKES, CAR LOAN, CREDIT CARD SPENDING

Previous article:
« 11 Crucial Financial Tips for High School Students
Next article:
New Year, New Budget: How to Get Your Finances in Order for 2023 »

Hello, I'm Kumiko, but everyone just calls me Miko. Welcome to my blog, The Budget Mom. I am an Accredited Financial Counselor® , and mom to a rambunctious boy. Come along with me as I strive to live a life I love on a budget that I can afford. Read more about me.

RECENT YOUTUBE VIDEO

The Budget Mom

The Budget Mom
Back on March 1st, I did an Instagram Live all about closing out your budget.

This step and my "Where Did My Money Go?" Worksheets are the two things I get the MOST questions about.

What do you do with your budget after the month is over, and you’re ready to begin a new month? Most people don’t realize it, but your spending throughout the month gives you some incredibly helpful information.

One of the first steps to creating and sticking to a realistic budget is tracking your expenses. Your spending is the underlying foundation for creating a budget and ensuring that your budgets in the future are successful.

If you are not aware of where your money is going, you can’t make the best decisions for your dollars.

➡️ HOW I TRACK MY SPENDING: https://bit.ly/3aIe89I
➡️ HOW TO USE A BUDGET CALENDAR: https://bit.ly/2IzF2Vj
➡️ FINDING YOUR WHY: https://bit.ly/3aJUryj
➡️ THE BUDGET MOM'S FINANCIAL FREEDOM STEPS: https://bit.ly/3cfJXsp
➡️ HOW TO GET STARTED WITH THE CASH ENVELOPE METHOD: https://bit.ly/2vQJaO5
➡️ HOW TO CREATE A PLAN OF ATTACK TO PAY OFF DEBT: https://bit.ly/2wDETxF
➡️ HOW TO CLOSE OUT YOUR BUDGET: https://bit.ly/2Uz0UUW

ABOUT ME

Kumiko Love is a single mom who empowers women everywhere to regain control of their financial lives. An Accredited Financial Counselor with over nine years of experience in the finance industry, she founded The Budget Mom, a community of millions of women on a path to financial fulfillment.

She's also the creator of the wildly popular Live Rich Planner® and Budget by Paycheck® Workbook. Love has been featured on Good Morning America, the Today show, CNN, CBS, ABC and in USA Today, US News, World Report, Huffington Post, Money Magazine, Parents Magazine, the Washington Post, and Real Simple. She lives in Spokane Valley, Washington.

YOU CAN FIND ME AT:

📝 WEBSITE: https://www.thebudgetmom.com
📘 FACEBOOK: https://www.facebook.com/thebudgetmom/
📸 INSTAGRAM: https://www.instagram.com/thebudgetmom/
📌 PINTEREST: https://www.pinterest.com/thebudgetmom/

GET STARTED

➡️Start Here: https://www.thebudgetmom.com/start-here/
➡️Courses: https://courses.thebudgetmom.com/
➡️Free Resources: https://bit.ly/2PDmTHz
➡️GET 10% OFF my popular Budget-by-Paycheck Workbook - Coupon Code TBMYOUTUBE https://bit.ly/3FEdZFp
Load More... Subscribe
Free Resource Library

Recent Posts

  • What to Do When You Receive a Lump Sum of Money
  • Why You Should Consider a High Yield Savings Account for Your Emergency Fund
  • Common Investment Terms You Need to Know
  • Saving for the Unexpected: How to Protect Your Family with an Emergency Fund
  • Budgeting When You’re Behind on Bills: A Survival Guide

Blog Categories

Amazon Associates Disclosure

The Budget Mom, LLC is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to amazon.com.

  • Cart
  • Shop Policies

Start With My Friday Newsletter

Every Friday I send you a short helpful email with my popular Friday freebie. Join my 500k+ subscribers!

About

  • Home
  • ABOUT TBM
  • Contact
  • Start Here

Important

  • DISCLAIMER
  • PRIVACY POLICY
  • Subscribe

Favorites

  • YouTube
  • Blog
  • Live Rich Planner
  • Budget by Paycheck

Start With My Friday Newsletter

Copyright ©2023, The Budget Mom®
This website contains affiliate links, which means that if you click on a product link, I may receive a commission. This website is a participant in the amazon services llc associates program, an affiliate advertising program where I earn advertising fees by linking to amazon.com.
  • How financially fulfilled are you? Take this 2 minute quiz to get your score!
    Click Here to Start