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Common Goofs When Purchasing A New Car

People make a number of expensive mistakes when they’re shopping for a new vehicle. Some buyers are attracted by the glossy and shiny exterior, neglecting safety and fuel efficiency. Other buyers, seduced by the promise of 400+ horsepower, are willing to overlook the 12 mpg and low resale value. Millions of people visit the dealerships each year and end up spending far more than they should for cars that won’t meet their driving needs.

Below, I’ll reveal 2 of the most common goofs that prospective buyers make when they shop for a new car. My hope is that the following list (albeit, a short one) will prevent you from making the same costly mistakes.

#1 – Scratching The Itch

Our parents were more likely to keep their vehicles for several years than drivers today. It was usually an expression of frugality. In effect, the longer you kept your car, the less expensive it was to enjoy the privilege of driving. The auto industry has obviously raised prices dramatically over the years, so owning a car hasn’t become any less expensive. The defining change has been the availability of credit and the flexibility of financing terms.

Drivers are more apt to trade in their cars earlier in order to enjoy the luxury of a new vehicle. Dealerships are happy to oblige, of course. Some will “charitably” offer to transfer the monthly payments directly to a new purchase contract. Be wary about “scratching the itch” to buy a new vehicle. It’s almost always more expensive than keeping your old one.

#2 – Mixing The Variables

I’ve mentioned this in one of my recent columns. The finance managers at dealerships are adept at manipulating numbers. When a prospective buyer approaches them with a potential trade-in, the salesman will try to negotiate by combining the variables. That gives them more flexibility and leverage to sneakily build in hidden profit. For example, they’ll try to offer a monthly payment based upon the trade-in value, financing terms, and sticker price.

Always negotiate each variable separately. Once you arrive at a price for the new vehicle, start negotiating the financing terms. Leave the trade-in value for last; in fact, don’t even mention it until the other variables have been negotiated.

Don’t Be Intimidated

The salespeople who work at dealerships realize that most consumers aren’t accustomed to haggling over financing terms. By contrast, they spend every day doing exactly that. Don’t be intimidated. Know the type of car that you want to buy (it helps to have done some research beforehand) and the amount you’re willing to pay for it. If you’re not able to secure the offer you want, walk away. And remember, driving your old vehicle for a few more years can be a great way to save money.

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Understanding Car Traction Control

If you’ve ever experienced the frustration of trying futilely to move your vehicle on slick ground, you’ll appreciate the value of traction. Without it, your car’s wheels can spin furiously without your achieving any acceleration. Over the past few decades, cars have evolved dramatically. Today, complex traction control systems are deployed to help drivers maximize engine torque on slippery surfaces. In this article, I’ll describe how they work and I’ll clarify a common myth about them.

How It Works

The primary goal of these systems is to maximize the amount of friction between the drive wheels of your car and the road underneath them. This friction is what allows your vehicle to accelerate. The problem is that friction diminishes when road conditions become slippery. Consider driving on icy ground. Pressing the gas pedal causes your engine to spin faster, which turns the drive shaft faster, making the tires spin. But, if your tires can’t grip the road, your car won’t move.

Traction control systems are actually a part of your car’s anti-locking brake system. The same sensors that modify the pressure to your brakes to prevent them from locking are used to identify wheel slippage. It does this by noting whether one or both of the drive wheels are spinning faster than they should. If they are, it applies braking pressure to slow the wheel. By reducing its speed, the system increases the wheel’s ability to grip the road, creating friction.

A Practical Example

I’ll explain how it works with an example. Assume that the roads are wet and you’ve stopped your car at a stop sign. When the coast is clear, you floor your gas pedal. Predictably, your wheels start spinning, but your car refuses to move. There’s no friction between your wheels and the wet surface. The sensors identify the slippage immediately and begin applying the brake to the spinning wheels. As the wheels slow down, traction increases and your car begins to move.

A Common Misconception

A lot of drivers are under the impression that these systems actually provide increased traction. It’s a minor misunderstanding, but it’s worth clarifying. They don’t actually increase the amount that is delivered to your wheels. Instead, these systems reduce the speed at which your wheels are spinning, thus reducing slippage. As slippage declines, friction increases, providing additional traction. The distinction may seem negligible, but it’s actually important to having a basic understanding about how the system works.

The key thing to remember is that these systems play a critical role in driver safety. They use the same sensors as your car’s anti-locking brakes to apply braking pressure, ultimately giving you more control of your vehicle.

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