There are many myths in the car-buying world, ranging from the boring to the ridiculous. Most misinformation is harmless, but some can be costly. Here, customers can get the knowledge they need to clarify some of the most common misconceptions surrounding car buying.
The Best Deals Can be Found Online
Certain companies sell customers’ information to dealers who will honor predetermined prices for vehicles. If the dealer (or dealers) who bought the lead have the right car in stock, the price is the only thing that’s been agreed upon. Finance and lease interest rates, trade-in pricing, and other factors such as the extended warranties must still be negotiated. The Internet is a great place to learn about car prices, but customers shouldn’t assume that online deals are fully negotiated or that they’ll save money and time by buying online.
Paying in Cash Lowers the Price
Money may make the world go around, but that’s not always true when buying cars. Auto Dealers are typically motivated to finance vehicles, and they often pad interest rates to improve their profit margins. Here, a dealer can make more when the customer finances or leases a car, and they aren’t as ready to cut prices on cash deals.
Buy Now or Lose the Deal
Unless a customer wants a car that’s in limited supply, it’s likely they will be able to find a comparable deal in the future. The deal may come as a reduced interest rate rather than a rebate, but the customer will usually end up paying about the same amount.
Buy at the End of the Month
If a dealer is close to meeting the manufacturer’s sales goal and the customer wants an in-stock car, the dealer might accept a lower-than-normal offer. However, if the dealer has already met its goal, or they don’t have one, the deals at the end of the month won’t be any better than those at the beginning.
Auto Dealers handle hundreds of sales per month, and most people only buy a new automobile once every few years. Even if one thinks they’re an adept negotiator, the dealer will usually have more information, which puts them in better control of the transaction.