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6 biggest car buying mistakes

Planning on buying a car? I know how exciting this process can be and how sometimes, the emotion of it all can take control.


But let me tell you, that’s exactly when you could fall into the trap of making a common car buying mistake.

Whether you’re looking for a new car now or later down the track, we’ve put together a list of some of the biggest car buying mistakes.

Shopping before researching

Start by having an idea of what you think would suit your needs as well as your budget. Diving straight into shopping and not establishing what you need from your car can be a dangerous strategy.

It can also mean you might commit to repayments that could stretch your cash flow a little too much if you don’t have a defined budget.

Not surfing the internet

Now, this is an easy mistake to avoid. The internet can provide you with fast and easy comparisons between different makes, models and deals in just a few clicks – so there’s no reason not to compare what kind of bang you can get for your buck.

You can also find some great deals on second hand car options, demo models and more. You might feel like it’s expanding your search, but it could present some great deals for you to consider.

Not knowing how much your trade in is worth

So, you currently have a car that you plan on trading in. Do you know how much it’s worth? Do you think it’s as little as the dealer is saying it is? Wrong!

Research to see how much you could get if you were to sell it privately. Once you have a rough idea of what it’s worth, head to the dealer with that information as it could work wonders in your favour.

If you’re undecided on whether to trade in or sell your car privately, check out our article to find out which could be best for you.

Skipping the insurance research

You found a car that you’ve fallen in love with, drove it home with the Compulsory Third Party (CTP) insurance that came with the vehicle registration. You then want to add comprehensive insurance coverage and faint from the sight of how much this will cost.

Try to have an idea of how much coverage you’ll want and how much this would cost depending on which car you choose, your driving history, etc.

It could add significantly more to what you initially thought when figuring out what a new car could cost you in the long run. You don’t want to leave yourself in a position you don’t feel financially comfortable with.

Not shopping around for finance

If you’ve fallen into this category before, we’re disappointed *shakes head* - we’re disappointed that there might have been a loan out there more suited to you! One of the biggest mistakes you could make is to not shop around for your finance before committing to buying a car.

Don’t just choose the car dealers' finance out of convenience, without giving anything else a thought. It pays to shop around to see who could beat it.

Better yet, chat to your local Mortgage Choice expert who can help you find a car loan that suits your needs. You can also save time with an expert on your side, who applies for the loan on your behalf and keeps you updated throughout the whole process, giving you more time to find the perfect car.

We can help you to explore the car financing options best suited to your needs.

Not organising car loan pre-approval

This follows into not organising pre-approval for your car loan. What is it and how could it help? Getting a car loan pre-approved is the process of a lender agreeing to give you a car loan before you buy it. They will assess your financial situation and how much you can borrow.

It’s a good idea to gauge what your price range would be before committing to something more expensive.

Again, your local Mortgage Choice expert can help you with this process.

Falling for the add-ons

When you’re at the dealership, remember they can be very charming. Not only are you on a high with nearly driving out with your new car, but you’re now in the position to be open to add-ons and extras for your car.

We understand the want to purchase the additional paint protection, window tinting and chrome wheels, however, consider how these will be paid. Are they added to the cost of the loan? If they are, you’re paying for these for as long as you’re paying off your car, with interest.

Add-ons like window tints may well be cheaper via a specialist provider than through a dealer, so it’s worth shopping around for these.

Sometimes, these optional features can also harm the resale value of the car, so have a look into whether adding the racing stripes will be worth the cost before committing.

 

Mortgage Choice can also help you with our door-to-door car buying service for new cars. If you’d like to utilise our service where we search for the car you want from dealers across Australia, give you back your time and eliminate the stress of having to negotiate the price on your own, we’re here to help.

We can also organise a car loan from our wide choice of lenders and even help with trading in your old vehicle.

Posted in: Asset finance

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