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How to buy a car

Cars are one of the biggest purchases people ever make, only surpassed by real estate purchases. Compounding matters is the fact that we typically by multiple cars over a lifetime, and cars go down in value. Here are some of the biggest mistakes people make when shopping for a car.

They Overestimate the Trade-ln Value of the Current Car A common mistake people make is inflating the value of the car they’re trading in. They assume the old car is worth just a little less than what they paid for it. It may become a matter of pride, demanding more for the trade-in. The dealer may inflate the value of the trade-in but make up for this by not cutting into their own profit margin or padding the bill with other fees. There are several variations of this mistake. First, someone may see their car as an extension of their personality or a mandatory status symbol for someone in their profession. The classic example is the doctor or lawyer who thinks they have to have a luxury car, when any decent sedan is fine. Another example is the young adult who picks out a car based on a subconscious mental image. It may be the young man who buys a jeep or sports car as if this proves he’s an adventurer or racer, though a few buy a more reasonable vehicle before making an explicit statement with spoilers and other after-market upgrades. from europe car news