Buying a new car is a big deal, and it can be one of the most exciting (and expensive) purchases you’ll make. But it’s easy to get caught up in the thrill of that new-car smell and shiny paint job and end up making some common mistakes. Just like with any major investment, there are things to watch out for to protect both your wallet and your peace of mind. Nobody wants to end up with buyer’s remorse or a car that doesn’t quite fit their needs. That’s why we’ve outlined some of the top things you should avoid during the car-buying process. With a little knowledge, you’ll feel confident rolling off the lot in a car you truly love.

Skipping Research

One of the biggest mistakes people make is walking into a dealership without doing any research. You wouldn’t buy a phone or a laptop without reading reviews, so why treat a car that costs way more differently? Start by thinking about your needs. Do you need a fuel-efficient commuter, a family-friendly SUV, or maybe something with towing power? Once you know what you’re looking for, check out models in your price range. Read expert reviews, watch test-drive videos, and, most importantly, look at owner experiences.

Researching can also help you figure out the fair market value for the car you want. Tools like Kelley Blue Book or Edmunds can give you a ballpark idea of what you should pay.

Things to Research:

  • Identify your needs: Decide if you’re looking for a compact car, family SUV, or something sporty. Think about your daily driving habits and what features matter most.
  • Read reviews: Check out what experts and everyday drivers say about the car you’re interested in. Look for any recurring issues or standout features.
  • Watch test-drive videos: Seeing the car in action can give you a sense of how it performs and handles in real-world conditions.
  • Check reliability ratings: Use websites like J.D. Power or Consumer Reports to see if the car holds up over time and has good long-term performance.
  • Compare models: Look at similar cars from other brands. Sometimes, you can find a better deal or more features with a competitor’s model.
  • Research market value: Use online tools like Kelley Blue Book or Edmunds to figure out a fair price so you don’t overpay at the dealership.
  • Explore fuel efficiency: Calculate how much you’ll spend on gas based on the mileage ratings and your driving habits.
  • Look into maintenance costs: Some brands have cheaper parts and repair costs, so factor this into your decision.
  • Confirm warranty coverage: Check what’s included in the manufacturer’s warranty and how long it lasts.
  • Investigate safety ratings: Look up crash test results and safety features to ensure the car is secure for you and your passengers.

Focusing Only on the Monthly Payment

Sure, that low monthly payment looks tempting, but focusing only on it can lead to trouble. Remember, car loans are often stretched out over several years. A low monthly payment might mean you’re agreeing to a longer loan term with higher overall interest. You could end up paying way more than the car’s actual value by the time you’re done with the loan.

Instead of just looking at the monthly cost, consider the car's total price, including interest. Before signing anything, ask the dealer for the loan details, like the interest rate and length of the term. If the numbers don’t add up, walking away is okay. Always prioritize the total cost over what feels affordable each month.

Things to Consider:

  • Shorter loan terms save you money in the long run.
  • Paying more upfront can reduce the total interest.
  • Don’t forget additional costs like insurance, maintenance, and fuel.

Ignoring Total Costs

Speaking of total costs, it’s not just about the price tag on the car. Owning a vehicle comes with ongoing expenses, and ignoring these can hit your budget hard later. Insurance can vary widely depending on the type of car you buy. Bigger engines or sportier models tend to cost more to insure. Then, you have regular maintenance, fuel, and possible repairs to think about.

Fuel efficiency is a big one. A car that gets 20 miles per gallon may seem okay at first, but those gas station stops can add up quickly if you do a lot of driving. Hybrid and electric models might cost more initially but could save you money over time by reducing fuel expenses. Make sure to budget these extra costs into your decision.

Avoid These Common Oversights:

  • Failing to get a car insurance quote before buying.
  • Forgetting about repair costs for less reliable models.
  • Overlooking fuel economy for daily use.

Rushing the Test Drive

A test drive is your chance to get a feel for the car and make sure it fits your needs. Surprisingly, some buyers either skip it entirely or rush through it. Big mistake! A car might look great on paper, but driving it could tell a whole different story.

Pay attention to more than just how fast it goes. Is the seat comfortable for long drives? Do the controls feel intuitive? Can you see clearly around the car? And don’t forget practical details, like the trunk size and how easy it is to get in and out. Take your time and try to picture what it would be like driving this car daily.

Test Drive Tips:

  • Bring anything you regularly use, like a child seat or sports gear, to see if it fits.
  • Think about how the car handles city driving, highways, and parking.
  • Pay attention to any sounds or vibrations while driving.

Falling for Sales Tactics

Car salespeople are trained to close deals, and while not all of them are pushy, you might encounter a few high-pressure tactics. One common trick is creating urgency, like saying, “This offer is only good for today!” Pressure like this can make you feel rushed into making a decision.

Another tactic is upselling unnecessary add-ons, like extended warranties or expensive protection packages. Some add-ons might be useful, but many are overpriced and can be skipped. Stay firm, and remember, you’re the one in control of the sale. You can take your time to decide or even walk away if you feel uncomfortable.

How to Stay in Control:

  • Don’t feel pressured by “limited-time offers.”
  • Decline extras you don’t really need.
  • Be prepared to walk away if the deal doesn’t feel right.

Not Getting Pre-Approved

Walking into a dealership without pre-approved financing is like going into a store without knowing how much money you can spend. Many dealerships offer financing, but their rates aren’t always the best. Before you start shopping, visit your bank or credit union and see if you can get pre-approved for a car loan. This gives you a clear picture of what you can afford and arms you with some negotiating power.

Having financing ready also means you won’t have to rely on dealer options, which could have higher interest rates or less flexible terms. It’s all about having options and making the best financial decision for yourself.

Benefits of Pre-Approval:

  • Saves time at the dealership.
  • Lets you focus on finding the right car, not financing.
  • Often gets you a better interest rate.

Overlooking Warranty and Return Policies

Warranties and return policies are there to protect you, but not all buyers pay close attention to them. Some dealerships might offer a return period, like seven days to decide if the car is the right fit. Check if this option is available.

Similarly, understand the manufacturer’s warranty on your new car. What’s covered, and for how long? Knowing these details can save you from headaches later, especially if something goes wrong within the first few months of ownership.

What to Look For:

  • Ask if there’s a grace period to return or exchange the car.
  • Read through the warranty to understand coverage.
  • Ask about extended warranties only if they make sense for your needs.