Top New Car Buying Mistakes

New car buyers have a lot to manage, including picking out the right vehicle, obtaining financing, and negotiating an acceptable price. With so many steps involved in the new car buying process, mistakes are bound to happen. Even the simplest blunders can cost you a bundle when you purchase a new vehicle, which is why you should review the following list of the most common new car buying mistakes before you start car hunting.

1. Buying based on wants instead of needs. A 300-horsepower engine in the car you use for your 30-mile daily commute may be fun at first, but the novelty will wear off pretty quickly the first time you see your total at the gas pump. To avoid painful regrets down the road, buy the car you need, not the car you want.
2. Not arranging financing before visiting the dealership. If you don't have your auto loan set up and ready to go before you set foot on a car lot, you'll end up getting pressured into dealership financing by the salesperson. Dealership financing is almost never the cheapest option, so take the time to explore your car financing options before you start shopping.
3. Selecting the closest car dealership. Proximity is not a valid reason to give your business to a particular dealership. Prices and promotions will vary among dealers, so the dealer nearest you is not necessarily the one that can provide the best value. Compare the prices of different dealers and ask around for recommendations.
4. Negotiating the monthly payment instead of the price. Virtually every car buyer who opts for dealership financing falls for this gimmick. The salesperson will try relentlessly to get you to negotiate your monthly payment, usually by asking "how much can you afford to pay each month?" Don't answer this question, and tell the salesperson you want to talk price, not payments. This way, the dealership can't manipulate the numbers to give you a pretty good monthly payment and a horrible price on the car.
5. Betraying your excitement. Unquestionably, buying a new car is a thrilling prospect. You've probably had the same vehicle for some time now, and you're ready for a change. This makes it very tempting to display your excitement when you finally find the car of your dreams. However, doing so in front of the salesperson will make you an easy target for a raw deal. Stay stoic and indifferent to keep the dealership coming down on the price.
6. Dressing up. If you're going to convince the salesperson that you can't possibly afford the price he/she is quoting, you'll need to look the part. Don't dress up when you visit the dealership, leave your fancy jewelry at home, and show up in the oldest vehicle you own if possible. The goal is to look as poverty-stricken as possible so you can negotiate your way to a better price.