When it comes time to buy a car we all need to set a car-buying budget to some degree. Which includes evaluating all the costs of the purchase including insurance, trade value and affordable monthly payments. Coming up with a budget figure before you find a car that you want at the dealership and deciding if the monthly payment sounds workable can be dangerous. The car salesman loves the buyer that sets their car-buying budget on the fly at the dealership because they know that there is a much better chance of making a larger profit and commission by getting the bump. Car sales people are trained to get you to raise your monthly payment limit.
Every single day car buyers are regretting their decision to purchase a car for various reasons, but the most common reason is the monthly payment. The reason for this is that they usually failed to set a car-buying budget before visiting the car dealership. They may have had an idea of their affordable monthly payment budget, but they failed to do the research and calculations that are required to make an intelligent decision when buying a car.
It’s very easy to get caught up in the moment at the car dealership when the thought of driving home a brand new car is only a signature away. This is when emotions, feelings and desires can overrule logic and good decisions. The entire car buying process is designed to engage the emotions and senses of the car buyer because emotional decisions are much more profitable than logical decisions. Your best defense is setting a car-buying budget before you fall in love with the idea of having a new automobile.
Setting the car-buying budget is a must, but you must adhere to the decisions you have made while setting your budget. If you have taken the time to do the research and evaluate all the costs make sure you don’t make adjustments to your budget numbers at the dealership. Remember, successful car salesmen know how to make you second-guess your decisions and get you to do something you wouldn’t do normally which often leads to car buyers remorse.