Buying a car is a big decision, and while there are plenty of tips on what to do at a dealership, knowing what not to do is just as important. Many buyers unknowingly make mistakes that cost them money or put them in a bad deal. If you want to walk out with the right car at the best price, avoid these common pitfalls when visiting a dealership.
1. Don’t Walk Into the Dealership Without a Plan
You wouldn’t buy a house without research, so why should a car be any different? A car purchase should never be impulsive. Before you visit a dealership, make sure you:
- Know your budget – Understand how much you can afford for a down payment and monthly installments.
- Check the market price – Research the car you want and compare prices across dealerships.
- Assess your trade-in value – If you’re trading in a car, know its market value to avoid getting a low offer.
Without a plan, you might end up spending more than necessary on a car that doesn’t suit your needs.
2. Don’t Let the Dealer Decide Your Car for You
Dealerships prioritize selling the cars they have in stock, not necessarily the one that’s best for you. If you’re vague about what you want, the salesperson may push a vehicle that doesn’t match your needs.
Be specific about the make, model, features, and budget you’re looking for. If the dealership doesn’t have your desired car, be ready to walk away or request a special order.
3. Don’t Discuss Your Trade-In Too Early
Many dealerships make more money on trade-ins than on car sales. If you bring up your trade-in before finalizing the price of the new car, the dealer might manipulate the numbers to make it seem like you’re getting a better deal.
Instead, negotiate the new car’s price first. Once you’ve locked in a fair deal, then discuss your trade-in. If you owe more on your current car than it’s worth (“upside-down”), it may be better to sell it privately rather than roll the debt into a new loan.
4. Don’t Let the Dealer Hold Your License or Keys
Some dealerships use old-school tactics to keep customers from leaving. One trick is to take your driver’s license or car keys before a test drive and then “misplace” them if you try to walk away without buying.
While dealers may need to check your license for a test drive, they should not hold onto it. Keep your documents with you and don’t hand over your keys unless you’re trading in your car.
5. Don’t Let the Dealer Run a Credit Check Too Soon
A hard credit inquiry can temporarily lower your credit score. If you’re still deciding on a car or loan, there’s no reason to let a dealership check your credit prematurely.
Only allow a credit check once you’re sure about the car and financing plan. Until then, ask the dealer for loan estimates without a credit check.
6. Don’t Focus Only on Monthly Payments
Many buyers get trapped by focusing only on the monthly payment instead of the total cost of the car. A dealer might stretch the loan term (72 or 84 months) to lower your monthly payment, but this increases the total interest you pay.
Instead, negotiate the final price of the car first. Once you agree on a fair price, then discuss financing options. A shorter loan term may have higher monthly payments but will save you money in the long run.
7. Don’t Rush the Process
Buying a car is exciting, but rushing through negotiations can lead to a bad deal. Dealers may pressure you with lines like, “This offer is only available today!”—but in reality, good deals exist year-round.
Take your time to compare prices, read contracts carefully, and walk away if something doesn’t feel right. The best negotiation tool you have is the willingness to leave.
A car purchase is one of the biggest financial decisions you’ll make, so it’s important to be informed and strategic. Avoiding these common mistakes will help you get a better deal, save money, and prevent buyer’s regret.
Always do your research, negotiate wisely, and don’t be afraid to walk away if the deal doesn’t feel right. By staying prepared and confident, you’ll ensure that you drive home in the perfect car—without overpaying for it.
FAQ’s
What is the biggest mistake car buyers make?
The biggest mistake is not researching beforehand. Many buyers go into a dealership without knowing the market price, trade-in value, or financing options, leading to overpaying.
Should I discuss my trade-in before negotiating the car price?
No, always negotiate the price of the new car first. If you discuss your trade-in too early, the dealer may adjust the new car price to give the illusion of a better deal.
Why shouldn’t I let the dealer run my credit check right away?
A hard credit inquiry can lower your credit score. Only allow a credit check once you’re certain about financing options and the car you want to buy.
Is it true that dealers pressure customers into quick decisions?
Yes, some dealers use urgency tactics like ‘This deal is only valid today.’ Take your time and compare offers before committing.
How can I negotiate a better deal on a car?
Research the market price, be firm about your budget, avoid discussing monthly payments upfront, and don’t be afraid to walk away if the deal doesn’t feel right.