When deciding whether to buy a new car rather than used, you’re likely to ask yourself a range of questions before making a decision about which way to go. Even if you’ve decided that buying a new car is for you, you may be a little wary about buying a car from a dealership due to some of the myths surrounding the buying process, for example, that car salesmen are trying to screw you over. Although some car buying myths are true, others can lead to unnecessary headaches and in some cases even terrible deals.
Here are just some of the myths about buying cars that we have attempted to discourage:
1. PAYING CASH WILL GET YOU A BETTER PRICE When buying a new car, don’t assume that just because you are offering cash that you’ll get a better deal as car dealerships won’t fall for this tactic. If a salesman is faced with two clients for example, one who is offering cash and the other who is offering the same price but who is financing, it’s likely that they’ll choose the person who happens to be financing because of the incentives.
2. NEVER FINANCE AT THE DEALERSHIP Most dealerships have agreements with credit unions. In essence, what this means is that you can get the same rate that your local union offers while completing the paperwork at the dealership. Doing it this way can actually save you time, money and can sometimes even work out at a better rate.
3. BUY NOW OR YOU CAN KISS GOODBYE TO A DEAL Salesmen can be sneaky and quite tactical at times, especially when it comes to putting a time limit on closing a deal. Remember, there’s no stopwatch on closing a deal and you should never be made to feel as though you are under pressure. Any salesman that does make you feel like this, you should try and avoid them at all costs. If you’re not sure on the car you want then walk away and keep looking as you should ensure you’re getting the car you want at an overall good deal.
4. BUYING FROM THE DEALERSHIP IS SAFER There’s often a perception that buying a car from a private party is too risky. And this is true as buying a car from a private party won’t get you any included warranty as you would from a dealership. However, provided that you have conducted your research, then the issue of warranty simply comes down to your ability of being able to pay for any repairs that may be necessary.
5. SPECIAL ORDERING WILL COST YOU MORE MONEY Although this would seem to make sense, sometimes special ordering a car can save you a considerable amount of money thanks to being able to hand pick. So if you don’t mind waiting a few weeks for your new car to arrive, special ordering could be a great choice for you.
6. YOU SHOULD WAIT UNTIL THE END OF THE MONTH Many people assume that the price of cars will be lower at the end of the month and that car dealerships will be more likely to accept a lower offer than normal if they are a few cars away from a sales target. However, if there is no target or that target has already been hit, then waiting until the end of the month to get a deal will be no different to the deal you would get at the beginning or the middle.
7. DON’T LET THEM KNOW YOU’RE TRADING IN The myth that if you don’t inform the dealership that you’re trading in your car, you can negotiate a better deal, sometimes maybe true and is a trick that is often referred to as ‘parachuting the trade’. However, doing this can often serve to complicate a deal and extend the time necessary to make the sale as the entire trade-in evaluation won’t start until after the rest of the deal is negotiated. Before attending the dealership make sure you do your research on the value of the trade-in and the new car so that you can ensure you’re getting a fair price.
8. BUY ON A RAINY DAY Many of us have heard this advice before, the thought that because it’s raining, fewer people will be visiting dealerships, meaning that there will be less crowds and salesmen will be more eager to move a car. Yet because of the widespread nature of this myth, a vacant dealership on a wet and rainy day aching for a sale is cancelled out by the numbers of people seeking to find a deal with dealerships experiencing high volumes of customers. Therefore, an aggressive dealer focusing on volume rather than individual transactions will be able to make the same deal regardless of the weather.