12 most common car buying mistakes
The car industry has been on a steady rise again post pandemic. Despite some issues with production allocations and availability of units, the industry has shown its resilience as more people are empowered to find their own means of private and personal mobility, allowing them to do more, and live more freely. But that also means more first-time car buyers who may be lacking the savvy of experienced shoppers, are acquiring new cars and oftentimes learn expensive lessons through experience, because they failed to avoid the most common car-buying mistakes. We take a look at a list we compiled together, and our recommendations on how to avoid them.
1. Failing to research on reviews and experiences with the car
Before going to the dealership, or talking face to face with family and friends about buying a new car, log onto the internet, and peruse various reviews from both traditional media, and reputable car content creators. You will see a pattern of comments and observations about a particular car. Keep these in mind.
2. Failing to test drive the vehicle
Cars are experiential. It is a highly-developed, highly personal and very unique purchase that is both rational and emotional. Feel it, drive it, experience it in as many conditions as you can. If you fail to establish some form of connection or affinity to the vehicle, then it’s simply not for you. You have to like the car, and crucially, trust it. That it will keep you happy, bring you to your destination efficiently and consistently, and will always keep you safe. This is critical.
3. Failing to check availability of your desired vehicle
With production allocations and limited stocks being an ever-apparent issue, make sure that the vehicle is in fact available in the spec, trim and color that you want. You might suddenly be in for a long wait after paying your (oftentimes non-refundable) reservation fee or deposit.
4. Read the fine print of the deed of sale (inclusions, paperwork and other fees)
Any good lawyer will ask you to read the documents before signing them. Make sure that you also understand them before signing on the dotted line. And make sure you keep the receipts. Make acknowledgement receipts including the check used and take photos of the signing.
5. Comparing offers from different brands and different dealerships of the same brand
Once you are decided on the spec, trim, and color if the vehicle you want, shop around different car dealerships of the same brand as one dealership might have a different price, or throw in more inclusions like an added discount, free accessories or free insurance. And if you narrow your list down to 2-3 cars, and you’d be happy to end up with any of them, see which dealership might give you the best deal, or have the vehicle you want readily available. Sometimes it’s the small things that really make or break a deal.
6. Absolutely DO NOT get suckered into buying with zero down payment schemes
In case you haven’t noticed, zero down payment offers for cars have THE HIGHEST interest rates with THE BIGGEST monthly amortizations. And you will be tied to their comprehensive insurance (mandatory for leasing and financing) which are far higher than the usual. This is the fastest way to get ripped off.
7. Compare your financing (interest) rates
Just like buying cars, shopping around for financing is just as tricky. Find the financing company (usually a bank) with the lowest interest rates. Some banks will also require you to go with their insurance partner which may not be the best deal, as well. Compare rates, ask for a comprehensive computation. And see the final monthly amortization.
8. Shop around for the best insurance deals and always include Acts of God / Force Majeure coverage
For insurance, stick with the big, established brands that offer quick assessment, repairs and / or payout. See if the insurance company can also offer staggered monthly payments (some offer up to 3 months of staggered delayed payments). This is to help ease cash outflow on your part.
9. Purchase from a dealership where you are comfortable with
You will be dealing with them regularly 2-3 times a year minimum – owning a car is a medium to long term relationship with the dealership, with a minimum of about five years. You will need to have your vehicle maintained there to get warranty claims as needed, and the dealership will have the latest equipment with the best trained people to fix / repair your new car.
10. Keep in mind that certain consumable parts are not covered by warranty or are covered by a third-party manufacturer
Certain parts are not covered with warranty because they are consumable and are dependent on too many external factors that vary greatly and are very subjective such as driving styles / habits and driving conditions and locations. These may include tires, brake pads and brake discs, car batteries, infotainment systems and sometimes air- conditioning components. Some may come with an outside party / OEM supplier warranty which the dealership can point you to.
11. You need to maintain and observe the recommended PMS schedule to claim warranty
Remember when we reminded you to read the fine print on the deed of sale? Well, most people don’t and when they leave the dealership, they go have their vehicles serviced at an independent shop, hoping to save some money. But when a warranty claim arises, the dealership will see that they have never not once serviced their vehicle at the dealership for the preventive maintenance scheduled servicing (as can be seen on the vehicle’s service booklet). The basis for the denial, it says on the fine print to always and exclusively only have your car serviced at the dealership, to avail of the warranty coverage. And your name appears above the fine print on the deed of sale which you signed on. So, read the fine print and stick to the dealership during the warranty period to have warranty protection.
12. Read the owner’s manual
Filipinos are lazy readers. They would rather ask some unknown “expert” in a random car forum or page about a highly technical issue than read the manual. Unfortunately, this is one if the fastest ways to spread misinformation and potentially damage your vehicle. So, before asking online, read the manual first. Stop the spread of misinformation and save yourself some car trouble.
