Finance Globe

U.S. financial and economic topics from several finance writers.
3 minutes reading time (660 words)

5 Car Buying Myths that should Never Slow you Down

Buying a car is supposed to be a fun, enjoyable experience. While many consumers look forward to this, others are so weighed down by a variety of myths and misconceptions that they don’t know what they should and should not be doing.

With all this in mind, it is important to become familiar with the most common car buying myths. When you separate fact from myth, it is much easier to make an informed and confident buying decision.

1. Walking out is the best thing you can do. While there is nothing wrong with leaving the dealership if you are not happy with the deal being offered or service being provided, you should not go into the process knowing that this is something you will do.

In today’s day and age, it is easier than ever to compare selection and prices online. For this reason, you should be able to start at the dealer that is going to give you a solid deal.

You should never be afraid to walk out. At the same time, you shouldn’t plan on doing this either. It is a myth that this will lead to the salesperson calling you back and giving you the “deal of the century.”

2. Extended warranties are a waste of money. This is a common myth that has been circulating for quite some time. Before you make a decision for or against this, consider both the pros and cons.

There is no denying the fact that this type of warranty will set you back a few dollars, typically in the $1,000 to $2,000 range. However, you are adding extra years to your basic warranty.

Before you believe this myth to be true, learn more about the following:

· Cost of the warranty
· Who backs the warranty?
· The coverage being offered

3. It is always better to shop around for your own financing. This is an idea to consider, especially if you have the ability to secure a low rate, such as through a credit union. Does this mean you will definitely secure the lowest rate on your own? Of course not.

The first thing you should do is contact several lenders, asking them for their best terms on a car loan. From there, work with the dealer’s finance department to see what they have to offer. Only then will you know for sure where the best deal will come from.

Tip: if you prove to the finance professional that you can get a lower rate elsewhere, they may be able to “beat the deal” on the spot.

4. Every dealer is the same as the next one. Just because the same dealer is selling the same car doesn’t mean they are going to provide the same price and service. If you believe this myth, you are only holding yourself back from getting the best deal and enjoying the buying experience.

Once you know which make and model you want to purchase, contact several dealers that have the car in stock. From there, negotiate with them online to see who can offer the best deal.

5. The salesman and manager will do whatever they can to trick you into making a bad deal. Most car dealerships don’t have a great reputation. Even if this is not deserved, the industry as a whole is often times looked down upon.

If you go into the negotiation process thinking that your salesperson and manager have it in for you, discussions are going to breakdown sooner rather than later. Believe it or not, there are honest people out there who will work with you to negotiate a mutually beneficial deal. Your goal is to find this type of dealer.

There are a lot of car buying myths out there, some of which are more prominent than others. When you avoid the five myths above, you have a better chance of buying the right car at the right price, all without any hassle.
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Friday, 23 February 2024

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