Read the Fine Print Before You Buy a Car — Here’s What To Look For

Buying a car can be a confusing process. Dealerships and lenders aren’t always clear about their terms, and it’s easy to end up paying more money than expected. However, with the right guidance, you can drive your new car off the lot with no surprises.

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This quick guide will cover everything you need to know about the car buying process, including common charges and steps to avoid them .

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What It’s Like To Buy a Car in 2024

Since the 2020 COVID-19 lockdowns, the auto market has been in flux. Low inventory and high prices made it difficult for the average buyer to afford a new or used car. However, those prices seem to have peaked in 2023 .

Although prices are falling for some types of vehicles, buying a car still isn’t cheap. It’s a big commitment, so it’s important to do your homework and ensure you’re getting the best possible deal.

Buying a New Car

Per experts, 2024 has been a promising year for new car shoppers. Automobile production is back on track after COVID-era downturns, meaning prices are starting to normalize.

If you’re shopping for a new car in 2024, you should expect to pay between $30,000-$70,000 , depending on the make and model you’re looking for. The average loan term for new cars in 2024 is just under six years with an average monthly payment of over $700 . If those prices don’t fit your current budget, you should look into a used car instead.

Buying a Used Car

Unfortunately, used car prices aren’t dropping at the same steady rate as new car prices this year. According to Kelly Blue Book, the average dealership price for a used car is $25,571 as of April 2024.

That doesn’t mean getting a good deal on a used car this year is impossible. Shoppers should take advantage of sales, incentives and trade-in offers to get the best possible deal.

Common Pitfalls in the Car Buying Process

According to one survey, around 76% of Americans don’t trust car dealers to be honest. Complicated sales contracts often include hidden fees or terms buyers don’t expect. With car prices so high, avoiding unnecessary charges is more important than ever.

Here are a few common pitfalls to avoid at the car dealership:

Add-on Charges

Dealer add-ons are bonus offers provided by the dealership. They might include guarantees like paint protection or bonus features like nitrogen-filled tires. These bonuses can’t be added to your contract without your consent. But car salespeople can be tricky — they might suggest that the add-ons are necessary or a normal part of the contract.

Be sure to discuss every charge on your contract with your dealer. They’ll tell you which charges are non-negotiable and which can be removed.

Hidden Fees

Required fees generally amount to 8%-10% of your total car price. Extraneous fees might include inflated charges, like a documentation fee that’s higher than average, or extra charges you didn’t agree to.

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Ask your dealer to walk you through every fee in your contract before you sign. Don’t hesitate to ask what fees are standard for the dealership.

Paying for Free Items

Your dealer might tell you that certain items are free with your car purchase. However, you should never agree to those add-ons until you know they’re 100% guaranteed to cost $0. Many dealers offer free bonuses but neglect to remove those charges once the contract is written up.

Mistakes and Typos

Some of your car’s contractual problems are totally unintentional but still cost you. For example, if your name is misspelled, it can cause issues with your registration later. Your dealer might overlook price typos that can add to your total cost if no one catches them.

Read your contract carefully before signing it to ensure everything is written correctly. If you have another person with you, ask them to read the contract, scanning for any typos you might have missed.

How To Buy Your Car Like a Pro

Whether you’re shopping for a new or used car, it’s crucial to do your due diligence. The car-buying process starts long before you get to the dealership.

Here are a few tips to help you avoid common car dealership pitfalls:

• Do your homework: If you have a specific car in mind, compare prices at multiple dealerships before you show up to buy it. You should also research common dealership fees and add-ons so you’ll spot unnecessary charges in your contract.
• Bring a friend: Have another person at the dealership with you, whether it’s your spouse, parent, sibling or friend. They’ll help you double-check your contract and remind you of important questions to ask the dealer.
• Read the fine print: Buying a car takes a long time. Be prepared to sit in the sales office for as long as it takes to read, re-read and verify the fine print in your contract. It might be boring, but it’s the only way to guarantee you’re getting a fair deal.

This article originally appeared on GOBankingRates.com : Read the Fine Print Before You Buy a Car — Here’s What To Look For