Whether or not April showers bring May flowers, your tax return could help you buy a car this spring. But before you start spending some serious green on a slick new ride, stop to smell the roses and do your due diligence. Check out these five mistakes spring car buyers make—and how you can avoid the sting of buyer’s remorse. 

1. Accepting the First Trade-In Offer

Starting fresh often spurs spring car buyers to trade in their car at the same dealership where they purchase their new vehicle. Wrapping both deals into one makes getting into a new car more convenient, and many shoppers assume they’re getting a fair deal. 

Always treat trading in your current vehicle as a separate transaction from purchasing your new car. That means shopping around for the best offer—even if it involves selling your car at a different dealership than where you make your new car purchase. This advice is especially true in the spring because it’s the best time of the entire year to get the most out of any vehicle you trade in. 

2. Relying Solely on Dealership Financing

Convenience also drives spring car buyers to explore financing only with the dealership they’re purchasing from. Many assume that, similar to their trade-in, dealerships offer the “going rate” and that terms vary little among auto lenders. 

In reality, the very opposite is often true: you may find better terms, depending on your credit score and finances. When you’ve settled on the car you want to purchase, reach out to several lenders (at least three, besides the dealership) to see what you qualify for. Negotiating your auto loan outside of the dealership could actually simplify the transaction, so what do you have to lose? 

3. Overlooking Dealership Fees 

Spring car buyers often focus on the vehicle price listed on a dealership’s website, overlooking additional fees commonly tacked on by dealers. Many of these dealer fees correspond to real costs—including taxes, titling, and registration—but several only surface once buyers begin their paperwork. Dealers use hidden or fake fees to increase their profits at the expense of unsuspecting buyers. 

Before you even sit down to fill out paperwork, educate yourself about which dealer fees apply and which you can negotiate. Read the contract carefully to identify any hidden fees that increase the final price. Don’t be afraid to challenge these fees—and walk away from the deal altogether. 

4. Focusing on Monthly Payment vs. the OTD Price

It’s common for spring car buyers to break down their overall car-buying budget into a monthly payment. The corresponding number helps them weed through their options to see what they can afford. Car salespeople also tend to focus on this number when locking in a sale. 

Maintain your focus on the out-the-door (OTD) price to ensure you don’t overpay for your new car and risk being underwater on your loan. Your monthly payments will change based on how much you put down—a bargaining chip you should absolutely leverage if you have a sizable tax refund—and what loan terms you negotiate. Do the math before you get to the dealership so you know which numbers align with your overall and monthly budget. 

5. Excluding Additional Car-Related Expenses from the Budget

Too many spring car buyers boil a new car purchase down to only the final price listed on the invoice. They often exclude additional expenses—such as annual registration, insurance, and maintenance—from their monthly budget. Even if they have enough funds to cover their monthly car payment, those extra expenses can quickly add up. 

Cars are investments and require maintenance and general upkeep. While newer cars tend to require less costly maintenance than a vehicle that’s 10 years old or has 100,000+ miles on it, you still need room in your budget for oil changes and tire rotations. Quote out insurance premiums and how much it costs to own your select vehicle—and budget accordingly. 

Shop and Spend Smarter With Expert Tools and Insights

Our latest car market update shows a mixed bag of opportunity for car buyers, depending—among many factors—on the brand and model year they choose. Yet, having cash to even the odds and key insights to guide your decision puts you at an advantage regardless of market conditions. 

Spend your hard-earned refund wisely by partnering with a CarEdge Concierge to find the best car deal available. Share your search parameters, and our experts will do all the legwork for you. Start the conversation today to get behind the wheel with greater confidence in your purchase.