Everyone makes mistakes, but some are costlier and more concerning than others. When you’re spending money on a new or preowned vehicle, you want to avoid mistakes in the process. Explore four of the common mistakes car buyers make and how to prevent them.
Buying a Vehicle That Doesn’t Fit Your Lifestyle
The vehicle you choose should reflect your lifestyle, family situation, and typical usage. A sporty two-door coupe might look great in the showroom, but if you’re transporting kids in car seats or regularly making big supermarket pickups, the size of the cabin or cargo area may not work for your needs. If you enjoy taking your vehicle on the open road and exploring uncharted terrain, an SUV with all-wheel drive would suit you well.
A vehicle that doesn’t fit your lifestyle can cause you hassles every day that you drive it. Consider your lifestyle and compare your vehicle options based on how you live and drive.
Extending a Vehicle Loan Too Far
While lowering your monthly vehicle payment may seem appealing, exercise caution before you extend a vehicle loan too far. The average auto loan term is 63 months, but many lenders offer options between 24 and 72 months. Some will extend to 84 months, which is equivalent to seven years.
The difference in the monthly payment between a 24-month and 84-month term is likely substantial, but the amount of interest you’ll pay will quickly add up. Instead of extending the loan term, consider shopping for a vehicle with a monthly payment you can afford.
Not Making a Down Payment
A vehicle is an asset that depreciates in value, especially within the first few years of ownership. In fact, the moment you drive a brand-new car off the lot, its value decreases. If you didn’t put any money down toward the financing agreement, you owe more money than the vehicle is worth. If you need to sell the vehicle, you likely won’t be able to receive enough money from the sale to pay off the total value of the loan.
Instead of financing the vehicle purchase, consider saving money to apply at least a portion of the total cost as a down payment to offset some of the depreciation. If you aren’t able to do so, consider leasing a new vehicle. You don’t have to make a down payment for this type of agreement. Leased models usually include gap insurance to cover the initial depreciation.
Not Doing Research
Take some time to research options and compare models in the segment you’re considering. Certain vehicles have features that you may want, while others don’t offer them. Make a list of your must-have features and start researching the vehicles that meet your needs.
At Sport Durst Hyundai, we can help you avoid mistakes so that you can get behind the wheel of the car of your dreams. Our team members can answer questions and guide you through the vehicle purchase process. Contact us or visit our dealership location today.
Image via Pixabay.com by geralt