When we’re about to buy a car, there are undoubtedly ‘car-buying’ myths that cross your mind. These range from the mundane (visit the dealership on the last day of the month) to the absurd (you’ll get a better deal if it’s raining outside). Most of these are relatively harmless, but some can wind up costing you both time and money.
Here Are 5 Common Misconceptions When Buying a Car
1. You Have To Service Your Car At The Same Place You Bought It
As mentioned in our article on Buying Parts From a Private Garage vs. a Car Dealership, when your car goes in for repairs, or you need car parts, your car insurance provider may recommend you have to go to a selected auto-body. In actual fact, it is just that, a recommendation, and you don’t have to abide by it.
The car salesman might try this ploy too. But as long as the mechanic you choose has the correct qualifications for insurance purposes, you can go where ever you please.
2. Wait Until The Last Minute To Mention Your Trade-In
Whether you mention that you have a trade-in or not, it will make no difference. This is because the entire trade-in evaluation will only start after the rest of the deal is negotiated. All negotiations for the deal are made first before a trade-in is even considered.
This can add hours to the amount of time you spend at the dealership, without really changing the amount of your trade-in at all. Think of it as the coupon code you add at an online checkout.
3. Wait Until The End Of The Month To Buy a Car
Whether you buy your car at the end or beginning of the month, it will make no difference.
There are instances when, if you are willing to possibly forfeit your chosen colour, you may receive a discount. This is pretty much isolated to when sales are low at the dealership and monthly targets need to be met.
If a dealership’s targets are met with their manufacturers for the month, it will make no difference if you choose to buy on the 1st or the 31st.
4. You Need To Buy Now Or The Deal Will Go Away
Unless the car you’ve found is in limited supply, the reality is you should be able to get that same deal, or a similar one, next week or even next month. It may take the form of a lower interest rate instead of a rebate, but the overall amount you’ll pay for the vehicle will be roughly the same.
Remember, the deal is only as good as the buyer and whether you take that shot now or in two weeks time, don’t let a car dealer persuade you to do anything with your money that you aren’t completely happy with. Make sure you get the car you want at an overall good deal.
If this is not the car in front of you, keep looking.
5. Paying Cash Will Get You a Better Price
Dealerships are usually incentivised to get buyers to finance a vehicle instead of buying it outright. Dealerships will earn more money this way and may even inflate the interest rate to increase the total amount they make on the transaction.
While “Cash is king” in circumstances, they may be less motivated to discount the price on a cash deal.