The thought of buying a car can be very exciting. Especially if it is one you have wanted for a while. But in all the excitement, it is easy to make rushed decisions, which could mean you don’t quite get the vehicle you expected or end up paying more than you should.

That’s why it’s always good to approach it rationally and without emotion. Because if you don’t, you could end up making some very costly mistakes.

Here are seven you should be especially mindful of. Steer clear of them, and you’ll have the vehicle in your driveway in no time.

1. Not setting a realistic budget

It is easy to set a budget by looking only at the price on the windscreen. However, that is not anywhere near the full amount you will spend.

Depending on where you live, you might also have to account for stamp duty, transfer fees, registration and insurance. All of which can collectively add thousands of dollars to the purchase price.

On top of that, the car might need servicing, new tyres, or a replacement battery soon after you buy it, all of which will need to be factored in. You should also add a contingency amount to cover unexpected costs that may invariably arise once you’ve purchased the vehicle.

2. Not inspecting the car before driving it

As tempting as it might be, when the seller hands you the keys, do not jump straight into the driver’s seat. Instead, spend a few minutes walking around the car first.

Specifically, make sure you look at the body from different angles to check whether the paint matches across all panels and if the gaps around the doors, bonnet and boot are even. If you notice slight colour differences or uneven gaps, it may suggest that repair work has been carried out.

You should also check the tyres for signs of uneven wear (which could indicate an alignment or suspension problem), chips in the windscreen, damage to the lights, and fluid under the vehicle.

Once you are inside, try everything to see if they are working. That includes the windows, locks, air conditioning, lights, touchscreen and seat adjustments. The presence of small faults may not be a dealbreaker. But you should know about them before agreeing on a price.

3. Not getting enough from the test drive

If you take the vehicle for a quick trip around the block, it will tell you whether the car moves, but not much else. But if you can drive it on a few different types of roads, you’ll get a much clearer picture.

Where possible, drive up a hill, on a suburban street and on a road where you can safely reach a higher speed. While doing so, listen out for any strange knocking, grinding, squealing or humming noises.

Also make a point of noticing how the steering feels. For instance, does the car pull to one side, or does the steering wheel shake? Do the brakes feel smooth and responsive?

You should also try parking it a few times. A car can feel fine on an open road but awkward in a tight car park. When doing this, check the visibility and see whether the cameras and parking sensors are genuinely useful.

4. Not arranging an independent inspection

A common mistake many buyers make in a private sale is taking the seller’s word at face value. However, it is always worth having a qualified mechanic perform a thorough inspection.

This should include:

• Brakes
• Suspension
• Cooling system
• Engine
• Transmission
• Evidence of earlier accident repairs

While their services will cost you money, they will also provide you with valuable insight into which parts will need to be replaced in the next few months. This can be incredibly useful, as it can save you potentially thousands of dollars in repair costs.

5. Not checking the vehicle’s history

A tidy appearance might make the car feel like an attractive proposition. However, it won’t tell you if the vehicle has money owing on it, has been stolen or was previously written off.

That is exactly why you should check the Vehicle Identification Number on the car to see if it matches the number on the registration and sale documents. You can then search the Personal Property Securities Register through the official Australian Government website. Doing this could be a useful exercise because a PPSR certificate can show whether a security interest is recorded against the vehicle by the police. In other words, whether the car appears on stolen-vehicle or written-off-vehicle records.

Whilst you are at it, take a close look at the car’s service history. You’ll want to know whether the recorded services are at sensible intervals. Because if they are not, then that could be a red flag.

6. Not comparing finance properly

Many buyers require finance to purchase a vehicle. However, they should always be assessed on its full cost, and not just the advertised interest rate or weekly repayment.

If you plan to borrow money, researching car loan options with fast approval early on is also a good idea. Doing this can help you understand your likely borrowing capacity and what repayments you will have to make.

It is important to compare the interest rate, comparison rate, loan term, establishment fees and any charges for paying the loan out early. You might think that a smaller weekly repayment will be appealing. But it can result in you being committed to a long loan term that costs more in total.

7. Not negotiating the total price

Another common mistake buyers make is paying the asking price in full. However, it is important to negotiate because you can often save a tidy sum.

The art of negotiation lies in you not appearing too eager, asking the right questions, and using information to your advantage. For instance, if you know a car has been on the market for two months, the chances are it is, or has been, overpriced.

Similarly, if you know some parts will need to be replaced soon, use that to your advantage when haggling over price. In any negotiation, it pays to act confidently. You should always remember that the seller wants to make a deal, and often, being prepared to walk away is when they are most likely to be agreeable to dropping their price.