11 COMMON CAR BUYING MISTAKES TO AVOID..

Everybody makes mistakes, and car buyers are no exception. The process of buying a car, new or used, can be overwhelming. Slow down, take a deep breath, and learn from the experts. 

BCHL-Lagos have compiled a list of 11 Common Car-Buying Mistakes to help ease your anxiety. Just avoid these missteps, and you'll be well on your way to a successful car-buying experience.

MISTAKE #1:

NOT DOING YOUR HOMEWORK - 

The Internet has democratized the car-buying process. Now, anyone can get access to facts and figures about vehicles, features, pricing and financing. There's no reason to step foot in a dealership without having first researched vehicles and their competitors.

MISTAKE #2:

CHOOSING THE WRONG CAR FOR YOUR NEEDS - 

With all of the choices available on the dealer's lot, you need to have a very good idea of how you want to use your car so that you can find a car that suits your needs. How often will you really carry seven passengers in that big SUV? Don't saddle yourself with a car that only suits occasional needs -- you'll do better matching your general needs, and renting a vehicle for the special occasions, like family road trips.

MISTAKE #3:

SKIMPING ON THE TEST-DRIVE - 

Many car buyers fail to spend enough time behind the wheel to really get familiar with a vehicle's performance and features. A thorough test drive should include a wide range of conditions, including bumpy back streets and smooth highways. The time to discover that your car is noisy and harsh at 65 miles per hour is not after you've already taken delivery.

MISTAKE #4:

BUYING NEW WHEN USED WOULD DO - 

Every potential new car buyer should consider used vehicles before buying. Certified Pre-Owned programs by many of the manufacturers have raised the bar for used cars. Most include a detailed vehicle inspection and refreshing, along with an extension of the new car powertrain warranty that might run up to 7 years/100,000 miles. Used car financing is cheaper than ever before – in many cases competitive with new car financing.

MISTAKE #5:

SUCCUMBING TO FEATURE CREEP - 

"Feature Creep" is when added optional features suddenly become necessities the longer the car-buying process goes on. A buyer who enters the process convinced that the stock radio is sufficient finds that only the latest surround sound/factory navigation system will do, and that leather seats are a necessity. Make a list of the features that you absolutely must have, and don't allow new features to creep onto your list unless they are within your budget.

MISTAKE #6:

RUSHING TO BUY - 

Cars are commodities, and there will always be another one coming down the road. This much is certain. So don't rush into the purchasing decision. Take your time, even if it means that you have to keep using uber or taxify cab services for a few more weeks in order to bridge the gap between your old car and your new one. Car dealers love buyers who are in a hurry -- it shifts the negotiating leverage toward the dealer because the buyer is much less likely to walk away without making a deal.

MISTAKE #7:

BLOWING THE BUDGET - 

You've done your research. You've arranged for financing. You've assessed your needs. Then, you go to the dealership and get talked into a car that costs way more than you've budgeted for. Stick to your budget, make sure that you can afford the car that you're buying, and avoid buyer's remorse.

MISTAKE #8:

FAILURE TO PRE-SHOP FOR FINANCING - 

Once the dealer's F&I (Finance and Insurance) guy gets his hands on you, the opportunity for mistakes escalates. If you haven't taken the time to pre-shop for financing at your personal bank or credit union before you step into the dealership, you are ripe to be pushed into financing that profits the dealer more than it helps you pay off your debt. Know how much you qualify for, and what interest rate you can get on your own. Better yet, arrive at the dealership with a loan preapproval in hand. Then, you will be in a position to assess the offer that the F&I guy slides across the desk.

MISTAKE #9:

TRADING IN YOUR OLD CAR - 

This is a big mistake that will always cost you money. Even if you owe money on your old car, you'll do better selling it on your own, or even selling it to a dealer, if you don't get involved in the trade-in process. Trading in your old car gives the dealer one more opportunity to profit on your convenience, and a chance to muddy the waters on the details of your new car purchase.

MISTAKE #10:

FOCUSING ON THE PAYMENT - 

The most important part of the financial transaction is the purchase price. When you focus on the payment, you're leaving yourself open to getting locked in to loan terms that are not as good as you might qualify for. You may get that N110,000 per month payment, but you may wind up paying an inflated percentage rate for a longer term than you hoped.

MISTAKE #11:

LEASING INSTEAD OF BUYING - 

Leasing makes sense for a lot of buyers, and we're experiencing another perfect storm for low lease prices: Low interest rates combined with high residual values. But that doesn't mean that it's smart to get seduced by leasing's low down payment and monthly rates. At the end of a lease, you don't own a car; you have to go out and repeat this process all over again. And who knows what lease rates will be then. Only lease after consulting your accountant to make sure that you are a candidate for tax benefits -- very few of us are.

Courtesy: Bokima Cyril Homes Ltd (BCHL-Lagos)
Instagram: @bokimacyrilhomesltd
Twitter: @BokimaCyrilHomz