Ah yes, buying a new car. It’s exciting that you want to buy a new car in 2022, but there are also some dangers. I see so many people buying new cars and making the same mistakes. But it doesn’t have to be that way for you! In this post, I will point out the 5 biggest mistakes people make when they buy their next new car in 2022.
Mistake 1: Failing to do research on what you want
Not researching the car they want to buy. Most new car buyers don't do any research on the car they want to buy. They just walk into a dealership and start looking at cars on the lot, or they browse the Internet and pick out some cars they like then go to a dealership and test drive those cars.
The result is that many people end up buying cars that don't fit their needs, or cars that have features that they don't need. Negotiating the wrong price for the car. Most new car buyers negotiate the price of their car by telling the salesperson what price they are willing to pay for the car, then letting them do all of the talking.
The problem is that 99% of all dealerships have a policy that states that these special deals can only be obtained if you negotiate them with them, not if you let them give you a lower price.
You should come into the transaction prepared by knowing what features, size, color and options they must have in order to consider a car a good deal. The better informed you are when you walk into that dealership, the more likely you are to come out with the car and deal you want.
Mistake 2: Buying a car you won't need
You might be convinced that a big pickup truck is going to be perfect for hauling your boat to the lake every weekend, but if you never use your boat or go to the lake, why did you buy that truck?
Most people shop for cars based on payments or monthly costs instead of actual needs and wants. When deciding on which car to buy, base your decision on what will work best for your lifestyle, not how many dollars and cents can be saved over another model. For example, if you have many children, it might not make sense to buy an SUV that isn't equipped with a third row of seats or enough cargo space.
Buying too large or expensive car is worse than buying too small or cheap because it usually means that you'll need to trade it in sooner than necessary when it no longer fits your needs or budget.
Mistake 3: Not understanding depreciation
The most common mistake made by new car buyers is not having a good understanding of how their car will depreciate. Many think that buying a new vehicle is actually an investment because it will depreciate at the same rate as a used vehicle. A new car loses about 20% of its value as soon as you drive it off the lot. Your car’s value will likely depreciate if you drive it a lot, but achieving optimal depreciation depends on the type of car you purchase.
Mistake 4: Forgetting maintenance and running costs
As soon as you buy a new car, you should always remember to give it proper care and maintenance. You need to change oil regularly in order to avoid serious problems with your engine. Also, don't forget about important checkups like changing tires or getting new brakes. Other ongoing cost includes annual registration, insurance, roadside assistance, car wash and petrol costs.
Mistake 5: Overpaying for insurance and accessories
Accessories: Dealers routinely mark up accessories such as car mats and bug shields by more than 50 percent. Before committing yourself to spending hundreds even thousands of dollars on these add-ons, ask yourself if they are really worth what they cost.
Insurance: Insurance is included in the price of the car: This is a common misconception that new car dealerships use to their advantage. They know that many buyers don't think they need to shop around for insurance because they've already been approved by the dealership. However, this isn't true. The dealership may be able to sell you a package of options along with your car, but if you want specific coverage amounts or an exact policy type, you'll have to shop around.
Extras and upgrades: It's easy to get distracted by all of the options available at dealerships and forget about the primary reason why you're there — to buy a car. Before setting foot on the lot, decide how much money you have to spend and stick to it so you don't end up going over budget just for some tinted windows and a spoiler.
Now that you’ve learned all about how to avoid making the costliest new car mistakes, take a moment to think back to your own recent car buying experience. Were any of these common pitfalls present in it? If so, what can you do better next time? Chances are that your next car will be even better than the one you bought last year, and we hope that the information shared here will help you achieve that goal!