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Seven things to avoid when buying a new car

Seven things to avoid when buying a new car

It kills me how some people buy cars.

A few years ago, an elderly family friend in Florida decided she should trade in her car, even though there was nothing wrong with it. She paid the full sticker price for a new version of the same car, and I can’t even imagine what she got for a trade-in on that low mileage, perfectly maintained sedan.

Please don’t do that.

Here are few other things to consider before you buy a new car:

Don’t impulse buy

First things first - do you really need a new car? If your current vehicle still suits your needs and is in good working condition, consider this question carefully. Don’t be swayed by that new car next door or those high-octane ads on TV. Remember, professional driver, closed course. You're not going to be driving in the surf or salomning solo down B.C.'s Sea to Sky highway.

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But if you do buy....

Get the car you need, not the one you’re fantasizing about. If you live in a condo in the city, or in an urban area with little in the way of parking, then let's face it, a large SUV or pickup truck isn’t a smart choice.

“What about that March break ski trip!” you cry. “We go to a cottage for a week every summer!” Fine, maybe you do really need a really big beast. But for that once-a-year trip, why not just rent a vehicle or buy a roof rack? You’ll save money on gas, tires and maintenance by driving a smaller car.

Don’t buy the first car you see

So you know what you want, it’s time to go to the showroom, right? Sure, but promise me something: kick a few tires, go for a test drive, and then leave. That’s right, walk out the door.

Most Canadians only buy a car every few years, but sales people sell these things every day, so recognize that you’re at a huge disadvantage when negotiating. The first trip to the showroom is for one purpose only: To finalize your decision on what car to buy. Take your time, think it through. Any chance you'll be carry a cello, hockey bags or a bunch of soccer players often? Make sure you’re going to be comfortable or risk suffering through years of cursing your choice.

Don’t look desperate

Is this the car you’ve always dreamed of? Do you need to buy today? Concerned about your credit? Zip it. De nada. Say nothing. There's nothing to be gained in mentioning any of that. You want to go into price negotiations on the best possible terms. Do not reveal anything. Never let them see you sweat. Which brings us to my next point....

Don’t negotiate in person

Once you’ve decided on the vehicle, you need to sort out the financial issues: The price of the car and the financing.

At the dealership, you’re on their turf. The salesperson and their manager set the pace, and this is where some buyers get so frustrated that they sign a deal just to get out of there.

Instead, deal with the financing from the comfort of your home where it’s easier to keep a cool head and avoid pressure tactics. Email local dealerships, and a few farther afield too. The last time I did this, the best deal was about three hours away in a small town. That dealership knew they were competing with the bigger city locations. They had to work for it.

And whatever you do... don’t tell the salesperson your max price

The salesperson might be friendly, but she's certainly not your friend. Her goal is to make as much money as possible. Your interests are not aligned.

Many people fixate on the monthly price, but that can cost you -- big time. By trying to keep the payment under $300 for example, you might not realize that agreeing to pay for an extra year isn’t a good deal for you.

Instead, negotiate on the total price. There are plenty of online calculators that will tell you what the monthly payment will be.

if you're trading in, shop around 

You can arguably get more for your old vehicle selling it yourself, but that means a lot of hassles that you may not want to bother with.

If you want to make the transaction as smooth as possible, trading in your old ride may be worth it for the convenience.

There’s room to negotiate on the value of your trade in, and the dealership offering the lowest price on your new car may not be the best deal if their trade-in price is poor. Consider the entire deal before you make your choice.

Take your time

Canadians bought almost 1.9 million cars last year according to Statistics Canada, so that blue hatchback you’re considering isn’t rare, not even close, despite what the salesperson claims. And if all of this seems obvious, ask yourself: Have you ever made a bad call on a car?

Join the crowd. Be smart, consider your options and only buy when you’re absolutely ready.