5 Car Buying Mistakes to Avoid at the Dealership

5 Car Buying Mistakes to Avoid at the Dealership


hello I’m Jason with the honest finance
Channel and today I’m gonna talk about the five biggest mistakes you can make
when buying a car now I know that we all love to buy cars and we like the new
ones and we like the fast ones and we like the powerful ones but you’ve got to
understand there’s a point where you’re wasting a lot of money go ahead and make
your own decision on buying a car but if you’re watching this video hopefully you
can learn something new number one buying your car at the wrong time of
year I know that sounds crazy but it actually affects the price of the car
based on when you buy it everybody seems to think that when you get a tax refund
that’s when you go buy a car actually that’s the worst time to buy a car you
don’t want to buy a car when everybody else is and you want to stick with the
end of the year car manufacturers typically roll out their new cars in the
fall and that means that the cars from the year prior are generally a lot
cheaper in the winter the salesman at the end of the year are also really
motivated to sell you a car and that’s because they’re trying to hit year-end
goals so just remember the time of year that you buy your car does make a
difference number two do some research what do I mean by do your research well
there’s a few things you got to check on your car before you go out and buy it
start with insurance the car you’re buying might actually cost more in
insurance than you think when I was younger I was looking at a Subaru WRX
and when I checked insurance rates it was gonna cost double what my previous
car was costing me if you’re ok with higher rates that’s fine but it does get
expensive right now I Drive one of the Ford f-150s with the aluminum bodies and
I had heard rumor that that was really expensive to insure well I called my
insurance before I bought the car and realized that it only cost me four
dollars more than the previous car I was insuring so the rumors weren’t true at
all another thing to check in research is the gas mileage you probably already
do this but it is something to consider also if the car requires premium gas
keep that in mind too all of these types of things add up
lastly check some reviews on the vehicle see if it’s safe see if it’s reliable
see if it holds its value well all of those things can save you a lot of
headache in the long run the number three biggest mistake when
buying a car is buying based on only your monthly payment the problem with
only caring about your monthly payment is that there’s a lot of factors that
you could be paying for that you’re not seeing the only thing a dealership has
to do to lower your payment is to extend the loan so they can sell you your car
at any price they want and then they just extend the loan and your monthly
payment seems reasonable however you’re probably paying too much for your car
you’ve got to have an idea of what you want your monthly payment to be but
that’s not the most important thing the most important thing is what you’re
actually paying for the car number for not getting enough value for your
trade-in if you have a car to trade into the dealership it’s a huge factor of
what your bottom line is going to be you have to get the best price on the car
that you can and the best trade-in value for your car if you get a really good
price on your car but a really bad trade-in then you’re just breaking even
this one’s pretty obvious but do some research on what your car is worth
before you go in to buy a new car you want to have an idea of what you’re
going to be negotiating with number five the financing the financing can cost you
a ton of money because at this point after you’ve bought a car you’re relaxed
you’re sitting down you think all is done but it’s not starting with your
interest rate you want to get a rate that’s most competitive with all of the
banks around you you don’t want to just go with whatever rate the dealership
gives you do some shopping and do some homework that 1% difference will cost
you a lot in a monthly payment and interest you’ve probably heard of
extended warranties did you know that those are negotiable in my opinion I
don’t think they’re worth it but if you do then go ahead and buy one here’s some
statistics for you 62 percent of car owners have a term that’s longer than 60
months and the average interest rate is 4.2 that means that most Americans are
probably ending up upside-down in their vehicles hopefully you learned something
today I’m Jason with the honest finance channel feel free to subscribe that’s
all

About the Author: Michael Flood

35 Comments

  1. Thanks, Jason. Every bit of advice helps as I'm about to purchase a vehicle. I'd like to add that to pay cash is the best non-finance option of all. Thanks for uploading this helpful advice.

  2. I so agree, I love cars but we need to be wise about it. Such a good point about buying a car at the wrong time! Supply and demand. Awesome video Jason!!!

  3. And thanks for all the likes and shares!! This video is starting to grow. And here's a link to my preferred auto lender, Lightsream Loans if you have any interest. Thanks. http://bit.ly/auto_loans_ls

  4. Will be purchasing a Subaru WRX in a few, it is crazy how it can relatively this helps me relate! Thanks for the update and gotta double check for the insurance rate! Thank you so much for all this information. Very professional and informative and honest tips!

  5. I have a family friend that goes to auctions. The auctions actually start their bids higher in tax return season.

  6. Why wealthy people never buy a car?
    because they know there's no such thing as not being ripped off on a car deal.
    even if you paid 8 dollars for the transportation device you will still be paying and paying and paying.
    Car title, license plates, tires, insurance, inspection stickers, repairs, fuel, and police harassment. It's all a setup by deep state.

  7. Here’s a link to my Car Buying Playlist if you wanna watch more 🙂 https://www.youtube.com/playlist?list=PLOmIpJDqCR-L6xTFH83iG-hGK9aDpy17r

  8. Good info…i wanted a 2016 hyundai sonata limited next summer…now i think i will wait til the end of december of 2019 lol

  9. HEY JOE @HONESTFINANCE ! YOU ARE MUCH APPRECIATED. I'm looking to purchase a car(2016 Honda Accord Touring) by February. YOUR VIDEOS HAVE BEEN VERY INFORMATIVE! Do you provide consultation services? No matter what, THANK YOU. THANK YOU. THANK YOU!💕💕💕

  10. Big question. I soooo hope u read and reply to this. I crashed my car and totaled it. Geico is guna give me $10k for it. I want a car that MSRP is $51-53k and they r selling it for about $47k. With the $10k down. I assume I only need to finance a $37k right? My credit score is low. I’m working on it. But I need a car ASAP. I’m carless. With two kids. And the dealership pulled my credit and said the banks weren’t going to approve me for the loan at the time. I bank with navy federal. I jus don’t kno what to do. I need ur help. I also have a $15k visa im paying down now. I cud pay the $10k on the visa. And take my taxes money and try to pay the rest of it off. But I’m still without a car. Also I can’t see myself paying money for a car I don’t want. I wud rather get the car I want. Pay it off in 5 years. And then move away to another state with no car payment. I have a whole 5 yr plan. Please help. I need help and no one is offering any advice.

  11. Extended warranty is only good for luxury cars and if you planning to keep it over 100,000 miles or more

  12. I like your videos, they are very informative. You jolt forward every time you make a point lol. Just a little Easter egg i noticed… great video from a new subscriber nonetheless

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