Let’s just jump straight into this because many people think one thing when really they are misinformed. So here they are: 5 Common Car Buying Myths and Misconceptions vs the truth about car buying!
Myth #1:
All extended warranties are scams offered by the dealership just to make more money.
The truth:
The average new car costs over $25,600. With that cost, owners should want to protect their investment. Extended Warranties may be pricey, but you pay money up front to avoid paying considerably more money at the time of the repair. Click here to find out more about warranties and no cost maintenance.
Myth #2
Financing through the dealer is always more expensive than getting outside financing.
The truth:
Some car dealerships have relationships with banks. The car dealership either owns the bank or vice versa. In some cases you just find that they deal with only ten banks. In any of the cases listed you will find that it may benefit you to look for your own loan through a bank first before approaching the dealer. The dealership can always give you an estimate for a car loan through them and you can compare the offers. For instance you may find due to the relationship with the car dealership the interest rate is actually a little lower for their customers. In some cases you may find that your bank offers a better interest rate because you have banked with them for over ten years. You don’t have to sign for any car loan until you have actually done all of the research that makes you comfortable. Click here to find out more about financing.
Myth #3
The best pricing on cars is always at the end of the month.
The truth:
The end of the month is not the only time to get a great deal. Dealerships are always motivated to sell cars. If you do want to take advantage of the dealer’s urgency to meet their monthly goal or quota, start your negotiation a few days before. Before you start negotiating, make sure the dealer has the particular car you want in stock. If they don’t, they can usually trade for it with another dealer. This can take a few days, and there is no guarantee that the dealer that can get the car for you. If not, you’ve wasted your time. Moreover, dealers typically offer better deals on cars they have in stock.
Myth #4
Knowing the invoice price will get you a better deal on the vehicle.
The truth:
Knowing as much as you can about the car that you want to buy is the first trick to getting the best price on a car, but having that information doesn’t necessarily mean you can just walk into a dealership and demand to pay invoice, because the consumer doesn’t dictate prices in the automotive world. Dealerships and the Internet don’t set prices either. So, what does dictate automobile pricing? The answer is supply and demand. You have the ability to bargain, because dealerships need to move cars that are not selling, even at very slim profits. So, when researching prices for cars online or in the paper, try to get an idea for how “in demand” your desired automobile is.
Myth #5
You shouldn’t mention your trade-in until you’ve already negotiated the final price of your new car.
The truth:
This is such a common practice that it’s known in the dealership world as “parachuting the trade.” Nine times out of 10, ‘parachuting’ just slows things down. It’s in the dealership’s best interest to give the best price it can. The sooner we can inspect the car, the quicker the process. Value your trade-in by clicking here.
If you are curious to learn more about buying a vehicle or would like to speak with someone who can answer your questions honestly and as straightforward as possible, be in touch with anyone from our team by calling 802 Toyota Scion at (802) 229-9117, or emailing any one of our team members at 802 Toyota Scion.