Terahertz time-domain spectroscopy (THz-TDS) employs a mechanical stage to introduce the time delay between pump and probe optical pulses during the sampling process of the time-domain electric field of a terahertz pulse. The positioning error and limited resolution of a mechanical delay stage cause an inaccurate sampling of a terahertz pulse. In this study, we numerically and experimentally investigated the influence of delay stage positioning error on the major characteristics of THz-TDS, such as bandwidth and dynamic range of the system, along with the signal-to-noise ratio (SNR) of the intensity spectra. We demonstrate that the positioning error in the delay stage not only reduces bandwidth and dynamic range of the measurement system but also decreases the SNR of the intensity spectra.