hello I'm Jason with the honest finance Channel and today I'm gonna talk about
the five biggest mistakes you can make when buying a car now I know that we all
love to buy cars and we like the new ones and we like the fast ones and we
like the powerful ones but you've got to understand there's a point where you're
wasting a lot of money go ahead and make your own decision on buying a car but if
you're watching this video hopefully you can learn something new number one
buying your car at the wrong time of year I know that sounds crazy but it
actually affects the price of the car based on when you buy it everybody seems
to think that when you get a tax refund that's when you go buy a car actually
that's the worst time to buy a car you don't want to buy a car when everybody
else is and you want to stick with the end of the year car manufacturers
typically roll out their new cars in the fall and that means that the cars from
the year prior are generally a lot cheaper in the winter the salesman at
the end of the year are also really motivated to sell you a car and that's
because they're trying to hit year-end goals so just remember the time of year
that you buy your car does make a difference number two do some research
what do I mean by do your research well there's a few things you got to check on
your car before you go out and buy it start with insurance the car you're
buying might actually cost more in insurance than you think when I was
younger I was looking at a Subaru WRX and when I checked insurance rates it
was gonna cost double what my previous car was costing me if you're ok with
higher rates that's fine but it does get expensive right now I Drive one of the
Ford f-150s with the aluminum bodies and I had heard rumor that that was really
expensive to insure well I called my insurance before I bought the car and
realized that it only cost me four dollars more than the previous car I was
insuring so the rumors weren't true at all another thing to check in research
is the gas mileage you probably already do this but it is something to consider
also if the car requires premium gas keep that in mind too
all of these types of things add up lastly check some reviews on the vehicle
see if it's safe see if it's reliable see if it holds its value well all of
those things can save you a lot of headache in the long run
the number three biggest mistake when buying a car is buying based on only
your monthly payment the problem with only caring about your monthly payment
is that there's a lot of factors that you could be paying for that you're not
seeing the only thing a dealership has to do to lower your payment is to extend
the loan so they can sell you your car at any price they want and then they
just extend the loan and your monthly payment seems reasonable however you're
probably paying too much for your car you've got to have an idea of what you
want your monthly payment to be but that's not the most important thing the
most important thing is what you're actually paying for the car number for
not getting enough value for your trade-in if you have a car to trade into
the dealership it's a huge factor of what your bottom line is going to be you
have to get the best price on the car that you can and the best trade-in value
for your car if you get a really good price on your car but a really bad
trade-in then you're just breaking even this one's pretty obvious but do some
research on what your car is worth before you go in to buy a new car you
want to have an idea of what you're going to be negotiating with number five
the financing the financing can cost you a ton of money because at this point
after you've bought a car you're relaxed you're sitting down you think all is
done but it's not starting with your interest rate you want to get a rate
that's most competitive with all of the banks around you you don't want to just
go with whatever rate the dealership gives you do some shopping and do some
homework that 1% difference will cost you a lot in a monthly payment and
interest you've probably heard of extended warranties did you know that
those are negotiable in my opinion I don't think they're worth it but if you
do then go ahead and buy one here's some statistics for you 62 percent of car
owners have a term that's longer than 60 months and the average interest rate is
4.2 that means that most Americans are probably ending up upside-down in their
vehicles hopefully you learned something today I'm Jason with the honest finance
channel feel free to subscribe that's all