Buying a new car is a financial event that’s almost part of the American Dream. Many drivers start off with a car previously driven by family members before they start looking at the used car market and, eventually, considering the new car experience. In late 2018, the Automotive News Data Center reported that sales of new cars were still strong despite automakers adjusting to meet increased demand for sports utility vehicles and light trucks. Once car manufacturers find their production line groove regarding SUVs and pickup trucks, new car sales will likely skyrocket.
Chasing after that new car smell is something many prospective buyers rush into without stopping to consider the potential of something going wrong. After a home, a new car is the second biggest investment Americans make in their lifetimes, which is why the auto insurance experts at Altra Insurance Services suggest it’s important to avoid the following mistakes.
1. Underestimating Trade-In Value
Auto dealership managers will always tell you they won’t make any money from your trade-in vehicle, but this claim belies the brisk business of the used car market. You never know just how much your old car can net you unless you conduct an appraisal.
2. Failing to Check Out the Dealership’s Online Offerings
Many dealerships have adopted a model that offers separate deals: some can be found on the lot, while others are listed in the online sales section. When lot sales aren’t performing as expected, the Internet department may float a couple of deals to boost sales.
3. Rushing into an Internet Deal
Regarding the mistake above, there’s also a chance car buyers may encounter a deal that’s too good to be true. If the Internet deal is for a specific 2019 Honda Accord the dealership is aggressively pushing to sell, the “buyer beware” axiom should automatically activate. The best way to test the seller’s intent in this case is to focus on the listed price and ask for a different color. If the dealership balks, there may be an underlying reason that requires visual inspection, a test drive, and negotiation.
4. Forgetting to Research
If you think a respected automaker such as Honda is incapable of rolling out an unreliable model, take some time to research the Clarity hybrid sedan, which sounds like a freight train and was crowding service departments at numerous dealerships as of late 2018.
5. Failing to Bargain
Auto dealerships in the U.S. are the closest you’ll get to a Moroccan bazaar, where buyers who refuse to haggle and negotiate will see their complacence met with merchants packing up their tents and leaving in disgust. Even though some American dealerships have tried to eliminate haggling, they still expect buyers looking for a bargain, and they continue to train their best salespeople in this ancient art.
6. Purchasing Inadequate Insurance
Buyers whose valuable trade-ins are augmented with a nice down payment may not be required by the financing institution to obtain comprehensive auto insurance, but this matter is better discussed with an insurance agent. As mentioned above, buying a new car is a considerable investment, and it should be adequately protected.
Buying a new car may be part of the American Dream, but it can turn into a nightmare if you don’t avoid the mistakes listed above. Even if your car isn’t so new anymore, you still need to protect it with reliable auto insurance. For affordable car insurance, reach out to the experienced professionals at Altra Insurance Services. We offer a variety of insurance products, including motorcycle, renters, and homeowners insurance. San Diego residents should give us a call today at (800) 719-9972 for a free quote.