Avoid These Common Car Pitfalls, Save Money & Get Your Dream Car…

Buying a car can be a big deal; whether it’s your first set of wheels or an exciting upgrade, it’s a decision that impacts your lifestyle, daily convenience and finances. After all, a car is typically the second biggest asset you’ll buy, after a house.

With all the excitement, it’s easy to fall into some common car buying traps that could cost you more than you bargained for. In this article, Luke Sanderson explores those common pitfalls, to help you avoid them, hopefully getting you the perfect car, at the right price, without any nasty surprises.

First though, let’s clear up a few common car buying questions:

Should I Buy My Car Privately Or Through A Dealership?

If you’re mechanically savvy, confident and comfortable with car inspections then you’ll probably get a better deal on your next car buying privately. Dealerships on the other hand, whilst generally more expensive, offer peace of mind with initial car checks, guarantees, greater transparency and car warranties; which means both have their positives and negatives.

It’s also worth considering how you’ll finance your car; with more finance options available in dealerships and private sellers typically only accepting cash purchases.

Should I Sell My Car Using A Car Buying Service?

Car buying services which offer to buy any car, regardless of age, condition and mileage can be an easy and convenient option if you’re looking to sell your car quickly, without hassle and you’re not too concerned about the value.

However, there are a number of ‘hidden’ catches when it comes to using these services, which aren’t immediately obvious:

• The initial quote won’t be the amount you’re paid: Your online car valuation is all well and good, but sellers are often surprised to find they’re offered much less when they take their car into the car buying depot. Agents (those working for the car buying services) are often incentivised to ‘knock off’ money from the initial valuation of your vehicle, by pointing out blemishes, bumps or scrapes, for example.
• You could be offered more at a dealership: If you’re thinking of trading your car in against another you may be surprised to find you’re offered more at the dealership than through an online car buying service. These days, both tend to value your car using Glass’s Guide, which provides a trade price for your vehicle. If you’re buying your next car through a dealer, theirs often a little extra included in your part exchange (above the trade price), to help make a deal.
• Cash buying won’t get you a better deal later on: Car buying services often pitch the benefit that ‘being a cash buyer on your next car will get you a better deal’, it won't. For dealerships, the least attractive customer is a cash buyer, this is because there’s no room for add-ons or long-term customer retention. Whilst finance should be considered carefully, it often leads to better deals over cash.

On average, cars sold privately achieve an extra £958

Top Car Buying Mistakes To Avoid

Rushing the Decision

It’s easy to get swept up in the thrill of finding a shiny new (or new-to-you) car, but impulse buying can lead to serious regrets. Dealers are experts at making a car seem like a once-in-a-lifetime deal, but the reality is, there’s always another option. Whilst you can’t wait indefinitely to commit, you should always take your time to compare models, prices, and financing options before signing anything.

We recommend doing some initial research before you even get to the ‘looking around’ and ‘test driving’ stage, use our Car Buying Guide to thoroughly understand what it is you’re looking for.

Not Making A Shortlist

It’s easy to get fixated on one type of car make and model, perhaps you’re partial to the smooth lines of a Tesla Model 3, or you love the sporty, sharp details of a Cupra; it’s important to broaden your horizons from just the one car. 

Making a shortlist of 3-5 models you’d consider should help you find a car you love at a better price; as you’re not painting yourself into a corner.

Not Setting a Budget

Walking into a dealership without a firm budget is like shopping without checking your bank balance; you might commit to something you can’t comfortably afford. Don’t just look at the monthly payment; consider the total cost of ownership, including insurance, tax, fuel, and maintenance.

Speak to your dealership about maintenance costs and whether they offer a service plan, which could help spread the cost of your car upkeep. It’s also worth factoring in Tyre & Alloy Wheel Insurance and Scratch & Dent Cover, especially on new cars, to avoid any costly surprises.

Ignoring Finance Terms

If you're financing a car, don’t just focus on the monthly payment. Longer loan repayments may seem affordable but you pay far more interest over time.

A low monthly payment doesn’t always mean a good deal; it could just mean you're locked into a long-term agreement that costs you thousands extra in interest. If you’re buying from a dealer check whether you’re being offered a preferred finance option or a ‘second string’ alternative, which often carries a higher APR.

With all this said, it’s worth understanding that financing a car is perfectly normal and safe, as long as it suits your budget and circumstances; a trusted, responsible dealership should make everything clear to you and make sure you find finance that’s right for you.

Here are three key finance elements to check:

• The total amount you'll pay over the full term
• Interest rates compared to your bank or third-party lenders
• Any hidden fees or early repayment penalties

Not Researching the Car’s History (For Used Cars)

If you’re buying a second-hand car, a quick visual inspection isn’t enough. Hidden issues like accident damage, outstanding finance, or past write-offs could turn your dream car into a financial nightmare.

Before you buy:

• Get a vehicle history check from a service like HPI Check or GOV.UK
• Ask for service records and previous MOT reports
• Inspect the car in good lighting and test drive it properly

Skipping the Test Drive

Why would you buy a car without driving it? A test drive lets you feel how the car handles, check for any strange noises and see if it’s comfortable for your needs.

Aside from the mechanical performance of the car, consider practicalities too; think about the boot space, how easy it is to get in and out, what it’s like to park and even things like whether the dashboard is easy to use.

When test driving, pay attention to:

• Brakes: Are they responsive, or do they feel spongy?
• Steering: Does the car pull to one side?
• Suspension: Does it feel smooth or too bouncy?
• Gearbox: Are gear changes smooth and easy?

Forgetting to Check Insurance Costs

A car might seem affordable until you get an insurance quote that makes your jaw drop. Insurance costs can vary massively depending on the car's make, model, engine size, and even colour in some cases. Before committing to a purchase, get an insurance quote online either direct with an insurer or through a comparison site; there’s no obligation to buy.

You can also check the insurance group rating for any particular make and model, which will give you an indication of how expensive or cheap a car will be to insure; the lower the rating, the cheaper the insurance. 

Insurance groups range from 1-50, with an average increase of £100 for every 10 insurance groups you go up, for instance, a Ford Fiesta in insurance group 12 may be £125 to insure, whereas a Ford Mondeo, in group 22, may be about £225 with the same driver details (data for illustrative purposes only).

Falling for Sales Tactics

These days, buying from a dealership is a relatively pain free experience. Long gone are the days of dodgy suits, underhand tactics and pressure selling. That said, there are still a few tactics some dealerships can (and will) employ to help get a deal over the line. If you fall for them, you could end up regretting it.

Avoid committing to any deal that’s ‘only available today’, it’s probably not. If you are in doubt, ask if you can pay a refundable deposit, to give you a few days to decide.

Often, you’ll be told that ‘someone else is looking at this car’, which is designed to instil a sense of urgency in buyers. Often, it’s true; with most cars being listed online, it would be more surprising if you were the only person looking at a particular car. Our advice; take this with a pinch of salt, if someone else buys the car in the meantime, so be it. There are plenty of other options out there.

Added extras may seem like a deal at the time, but they can often sway you into buying when you otherwise wouldn’t. What’s more, they’re extras that you could probably negotiate at any time, without the added pressure. We’re not saying you need to reject a deal outright, but think long and hard about any car sale that includes time-sensitive added extras.

Not Considering Depreciation

If you’ve read any of our other articles you’ll know we’re big on depreciation and negative equity. The minute you drive your car off the dealership forecourt it will be losing value; known as depreciation.

Some cars depreciate faster than others, which is something you should keep in mind when at the buying stage.

If you plan to sell or trade-in your car in a few years, research which makes and models hold their value the most so you’re not out of pocket.

Try our Car Depreciation Calculator, totally free, for an estimate of depreciation, based on industry-standard data.

Read More: Buying On PCP? Read our list of Common PCP Mistakes

Overlooking Running Costs

Some cars might be cheap to buy but expensive to own. Factors like fuel economy, road tax, servicing, and part replacement costs all add up.

A high-performance car might look great on the driveway, but if it guzzles fuel and costs a fortune to maintain it may not be the best long-term choice. This is particularly true of used luxury cars too; big-engined BMWs, Mercedes and Audis (such as the 7 series, S Class and A8) can all be picked up at a bargain price, but you’ll be in trouble every time there’s any repairs needed.

Not Negotiating

Thanks to the internet, buyers are generally more savvy these days, meaning sellers, whether private or a dealership, have to be more competitive and transparent with their pricing. That said, there’s always a little negotiating to be done.

Many buyers accept the first price they’re given, but most car prices are negotiable; especially on used models. Don’t be afraid to haggle and always research the fair market value before heading to the dealership.

Tip: Be fair with your negotiation, salespeople have to earn a living too, but always be prepared to walk away if you think the car you’re going to buy isn’t worth it.

Final Thoughts

Buying a car doesn’t have to be stressful, but avoiding these common mistakes will save you a lot of money and hassle in the long run. The key is research; know what you’re buying, how much it should cost, and what to watch out for before committing.

Take your time, ask questions, and always be prepared to walk away if something doesn’t feel right.

As we always say though; enjoy it! Buying a car (especially in modern times) should be an enjoyable experience.

If you think we’ve missed something, message us using social media, we’re always happy to help and, as always, remember to share this with your friends if you’ve found it useful, you can even use our Pinterest Friendly Image below!

Car Buying Services Vs Selling Privately Infographic

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