Buying a new car often comes with a lot of anxiety and excitement in equal measure and, as a result, many motorists end up making grave mistakes. Some of these mistakes are hard to detect since unscrupulous car dealers often fail to bring them to your attention or deliberately hide them from you.
Considering some of these factors when buying a car saves you thousands of dollars in hidden costs that the seller fails to mention when completing your sale.
Pickles Auctions shares tips to help you escape clever car buying traps.
Rate of Depreciation
Depreciation comes as a culmination of many factors including maintenance regime, driving style, the kind of terrain, and type of workload. While it is possible to control some of these factors, others not so much. Popular car brands have a high rate of depreciation since they are readily available. While they may not amount to much in resale value, locally produced models are cheaper to maintain.
Fishy Dealer-Financed Auto Loans
Unscrupulous dealers often purport to offer affordable financing option to their customers that turn out to be a scam. While genuine dealer only marks up 2.5 percent on the loan, others tend to go beyond this set limit. Others find ways to coerce you to accept to a higher interest rate or top up on your deposit and threaten to repossess the vehicle if you protest. Reading through the agreement with a fine tooth comb helps you to sidestep such hidden traps. Seek reliable legal counsel and have them explain the terms to you if you have any questions.
Buying on Set Monthly budget
Capping the total amount of money you wish to spend on a car allows you to save lots of money. Crafty salesmen often find ways to fit an expensive purchase into your monthly budget by stretching the repayment period. The longer you pay the loan, the higher the interest you pay.
Evade these cleverly hidden traps while buying a car saves you a lot of trouble and money down the line and improve your car owning experience.