Buying a car can be an exciting experience, but it can also be daunting, especially if you’re a first-time buyer or haven’t purchased a car in a while. There are many misconceptions and myths surrounding the car buying process, and falling for them can lead to costly mistakes. With so much information available online and in person, it can be difficult to know what’s true and what’s not.
Buying a Car Online is a Risky Choice
Many people believe that buying a car online is a risky choice that should be avoided. They worry about not being able to inspect the car in person or negotiate with the seller. However, if you decide to buy cars online, you should know that this step can be a convenient and safe option if you take the necessary precautions. It’s true that buying a car online requires a bit more research and due diligence than buying from a dealership in person. However, with the abundance of online resources and services available today, such as virtual car inspections and secure payment methods, buying a car online can actually be a safer and more efficient way to purchase a vehicle.
You Need to Pay Cash to Get a Good Deal
Source: forbes.com
One of the most common car-buying myths is that paying cash is the only way to get a good deal. While it’s true that cash can give you more negotiating power, it’s not always necessary. Dealerships make money on financing, so they may be willing to negotiate on price even if you’re financing your purchase. Additionally, financing your purchase can be beneficial for your credit score as long as you make your payments on time. However, it’s important to do your research and compare financing options from multiple lenders to ensure you’re getting the best deal possible. You may also want to consider getting pre-approved for financing before you go to the dealership, as this can give you more leverage during negotiations.
You Should Buy a Car at the End of the Month
Another popular myth is that the end of the month is the best time to buy a car. The theory is that dealerships are more willing to make deals to meet their monthly sales goals. While there may be some truth to this, it’s not a guarantee. Dealerships are looking to sell cars all month long, and you may be able to get a good deal at any time. It’s important to do your research and be patient when shopping for a car. Don’t rush into a purchase just because it’s the end of the month. Instead, focus on negotiating the best deal possible based on the current market value of the car.
You Should Always Buy a New Car
Source: forbes.com
Many people believe that buying a new car is always the best choice. While there are benefits to buying new, such as having the latest technology and a warranty, it’s not always necessary. Used cars can be just as reliable and can save you a lot of money. When shopping for a used car, make sure to have it inspected by a trusted mechanic and check its vehicle history report. You may also be able to negotiate a lower price for a used car, which can save you thousands of dollars. Additionally, some dealerships offer certified pre-owned vehicles that come with a warranty and have been inspected by the dealership.
The Dealer Invoice is the True Cost of the Car
Some people believe that the dealer invoice is the true cost of the car and that anything above that is profit for the dealership. While the dealer invoice can be a useful tool for negotiating, it’s not always the true cost of the car. There are many other factors that go into the cost of a vehicle, such as marketing and distribution expenses. Additionally, dealerships need to make a profit in order to stay in business. It’s important to do your research and negotiate a fair price based on the current market value of the car. You may also want to consider using online pricing tools and negotiating via email or phone to save time and reduce pressure during negotiations.
You Shouldn’t Negotiate on a Lease
Leasing a car is becoming increasingly popular, but many people believe that you can’t negotiate on a lease. This is not true. Just like with purchasing a car, you can negotiate the price and terms of a lease. Make sure to understand the lease terms and any additional fees before signing the agreement. Additionally, make sure the mileage allowance and lease length fit your needs. You may also want to consider looking for lease specials and promotions that can help you save money.
You Shouldn’t Get Pre-Approved for Financing
Source: moneysense.ca
Some people believe that getting pre-approved for financing will limit their options or that it’s not necessary. However, getting pre-approved can actually help you negotiate a better deal and ensure that you’re getting the best interest rate possible. It also gives you a clear understanding of how much you can afford to spend on a car, which can prevent you from overspending. When you’re pre-approved for financing, you’ll know exactly how much you can spend, which makes negotiating with the dealership easier. You can focus on getting the best price for the car instead of worrying about financing.
You Should Always Take the Extended Warranty
Extended warranties can provide peace of mind, but they’re not always necessary. Before purchasing an extended warranty, research the reliability of the car and the likelihood of needing expensive repairs. If the car is reliable and has a good track record, it may not be worth the additional cost of an extended warranty. Additionally, read the fine print of the warranty to understand what’s covered and what’s not. You may also want to consider putting the money you would spend on an extended warranty into a savings account for future repairs.
You Shouldn’t Walk Away from a Deal
Walking away from a deal can be difficult, especially if you’ve invested a lot of time and energy into negotiations. However, it’s important to remember that you have the power to walk away if the deal isn’t right for you. If you feel like the dealership is not negotiating in good faith or if the terms of the deal are not favorable, it’s okay to walk away. Don’t let the pressure to make a purchase cloud your judgment. There are always other options and other cars to consider.
