A car is a pretty big purchase, and not one people make often. While the process can be daunting if you go into the dealership having done some homework and with a sense of confidence, it can be a bit easier on your stress level, and on your wallet.
To help create a better experience, here’s the truth behind 5 major (and misleading) car-buying myths.
Don’t Tell Them You’re Trading In Your Car Until The End
This myth will only cause more pain on the buyer’s end. Trading in your car can be beneficial to both you and the dealer, so the earlier you tell them, the easier it is for the dealer to work the price around the value you’re already taking off. If you wait until the last minute to tell them, the deal could potentially have to start over, extending your time sitting at the dealership by hours.
Month-End Quotas Mean Better Deals For Buyers
Most people believe that they can get a better deal if they go car shopping at the end of the month because the sales associates have to meet their quotas by the end of the month. Because one car sale rarely makes a difference to the dealer, this myth isn’t entirely true. Your best bet is to make your way to the dealership on a slower day when the sales associate can spend more time focusing on you.
Leasing Is Less Expensive (Or More Expensive) Than Buying
Some people think leasing is the least expensive way to get a new car, while another group thinks the opposite—that leasing is a waste of money and more expensive in the long run. In fact, the cost of leasing depends entirely on each person’s individual financial state, interest rates, and how often you use the car. In addition, most experts believe that anyone who plans on keeping a car for more than three years should buy instead of lease to maximize their investment.
Buying From A Dealer Is Easier Than A Private Purchase
It’s true that when buying from a private party, you have to do a lot of background research and make sure you are checking every box. But you should be doing the same when buying from a dealer as well. In addition, all of the paperwork done at a dealer makes things seem more complicated than it really is. In reality, buying from a personal connection or another individual often means less messy paperwork.
Cash Trumps Credit
Just because you have a considerable amount of cash to put down on a car doesn’t mean the dealer will give you a better price. In fact, how you pay doesn’t make any difference to the dealer. When a customer pays in cash or pays using a loan from a bank, the dealer immediately gets their full profit at the time of the purchase.