Mistakes that luxury car buyers must avoid

By Charles Hopkins Published 05/18/2006 | Auto and Trucks

Mistakes that luxury car buyers must avoid

It is not everyday that you buy a luxury car. You may, of course, sell it if you dont like it. But this will make you poorer by several thousand dollars. It is therefore important that you decide what suits your requirements most. Dont go by what your friends say. Also, dont be carried away by the looks and public perceptions of a luxury car. The luxury car that you buy must meet your requirements. Some of the common mistakes that you must avoid while buying a luxury car are:

1. Not doing enough market research: Dont buy a luxury car blindly. You must do some ground research before buying a car. This can be done by going through major car magazines Car and Driver and Road & Track and visiting Internet sites. Both of them provide useful information on new car launches. A big advantage is that car sites also provide price comparisons. Reviews done by professionals are especially useful. At one go, you get to learn the strong and weak points of a car. Most sites also rate cars on different parameters. This is another useful source of information.

2. Buying too soon: The decision to buy should not be hurried. People who are too eager to buy new cars often make a wrong choice. Even dealers coax eager buyers and convince them to buy cars on terms that are not favorable to them. This specially happens when customers trade in vehicles that still have substantial outstandings against their name. In such deals the buyer gets a car at a price which is much more than what the car is worth.

3. Avoiding visiting several dealers: You must visit several dealers, whether they are near your home or far away. You will find that different dealers offer different prices. Also, if you have done your research well you can drive a better bargain, and shave several hundred dollars on the car.

4. Saying no to a test drive: Most buyers think that they know everything about cars. After all, they have been driving for several years. So, what is the new thing they can learn? This is not a good approach. You must take the car for a test drive. It will give you a feel of the car even before you buy it. Please remember that there may be cars that may not suit your frame. If you are a large man you may have to squeeze into the car or if you are a woman you may find it difficult to step out smartly. These are minor points but they must be explored before taking a final decision.

5. Failure to negotiate an umbrella deal: You must remember that the dealer is very keen to offload the car. It is for you to take advantage of his desperation. You must try and hammer a deal that suits you most. Ideally, you must try and go in for a deal that takes into consideration the sticker price of the new car, trade-in value of your old car and financing. Do not sell off your old car early on the bargain.

6.  Lack of interest in finding the best financing rate: Most of us are in such a hurry to buy a luxury car that we take the first financial deal that is offered to us. Nothing can be more foolish. You must visit different car financing agencies and credit unions and compare their rates of interest and the mode of payment. You may find deal that suits you more.

7. Ignoring hidden/extra costs: There is no shame in pushing the dealer to come clean on hidden costs. You will find that there are many hidden expenses in what is euphemistically called the dealership protection package. This includes document processing fees, advertising cost etc. See, if you can make the dealer pass some of these benefits to you.

8. Failure to factor insurance cost: When calculating the cost of your car you must take into consideration the insurance premium because it is a significant part of your yearly car budget.