What Not to Do When Buying a Car

Buying a car is much more complicated than picking out the right vehicle and securing a new auto loan. Much can go wrong in the car-buying process. Read on for a list of things you shouldn't do when purchasing your next vehicle.

1. Buying the car you want instead of the car you need. Often, buyers get caught up in the excitement of a new vehicle and end up choosing an impractical car for the thrill it provides. For example, a middle-aged man with a family of six buying a racy sports coupe is probably not a wise long-term decision. Remember, the thrill of the car will wear off, but the payments on your new auto loan won't.
2. Betraying your excitement. If you find the car of your dreams and can't wait to buy it, don't let the dealer know. You need to stay stoic around the dealer to avoid hurting your negotiating leverage. A salesman who knows you are in love with a car will be less inclined to give you the absolute best possible deal.
3. Going into the process blind. One of the worst mistakes you can make with car buying and your new auto loan is to go into the transaction without doing your research first. If you are ignorant about new vehicle prices, rebates, incentives, and the like, you can easily be taken advantage of by the dealership. Doing adequate research will help you size up the offers you receive more accurately.
4. Negotiating monthly payments instead of price. This is the oldest dealership trick in the book: duping the buyer into negotiating the monthly payments on a new auto loan instead of the actual price of the vehicle. Dealers can manipulate the financing package to give you the monthly payment you want and still manage to give you a terrible deal on the vehicle's price. Insist that the dealer negotiate with you on the car's sale price before you even discuss financing.
5. Discussing your trade-in right off the bat. Dealerships also prefer to discuss the value of your trade-in rather than negotiating the new car's price. Don't put the cart before the horse-negotiate an acceptable price on your new car before you even bring up your trade-in. Even better, sell your old vehicle privately and apply the money toward your new auto loan.
6. Accepting the first interest rate you're offered. The secret to finding an affordable new auto loan is to shop for the best interest rates with multiple lenders. The first interest rate you're offered is unlikely to be the best available, so shop around before you settle on a new car loan. Talk to at least three different lenders before you accept an offer.