If you’re debating between buying a new car or purchasing an older gem, we feel your pain. Deciding between that intoxicating new car smell or the financially savvy decision isn’t always easy. But while costs may add up initially when buying a new car, it is oftentimes more cost effective than buyers may think. This post will debunk common myths about buying a new car in hope you’ll find the perfect new car this year.
Check out the five most common myths that drive buyers away from purchasing a new vehicle and how to block the misconceptions.
Myth #1: Buying a car online is the most economical
Given the pandemic, online car sales have skyrocketed this year. As most of us have spent the majority of 2020 glued to our computer screens, it’s no surprise this buyer trend has taken precedence. Thanks to the likes of Carvana and other e-commerce online car buying sites, the ease and convenience of buying a new car is easier than ever, but does that mean it’s the better deal?
Not always. While online advertisements offer some of the lowest prices for new cars, many times these offers do not include interest rate, warranty, or trade-in values. For this reason, these expenses could be deceiving and end up costing you more than the rates negotiated at a dealership.
Myths about buying a new car #2: Cash is king
Contrary to popular belief, most dealerships encourage their buyers to finance cars. In this case, having the cash on hand won’t necessarily land you the best deal. So when you’re scoping out your next ride, make sure to ask about all the financing options and discounts available at the time. Unless there are cash-only incentives, then you could benefit from an all-cash purchase.
Myth #3: It’s better to finance through a bank than a dealership
It’s a common misconception that dealerships are in the business of ripping you off. When it comes to financing, dealerships have the versatility of working with multiple banks and lenders, with the option to directly finance through the dealership itself. This myth is leading buyers to fixed interest rates instead of the ample financing options available through a dealership. While dealerships can offer you 0% APR, the banks cannot. Therefore, it is best to discuss all your finances options when the time comes to purchase a new vehicle.
Myths about buying a new car #4: Wait until the end of the month to buy
Every dealership sets certain quotas for their car salesmen, but this doesn’t mean each quota is met monthly. While some dealerships might offer end of the month discounts, it’s not as common as you think. The bottom line: you are not guaranteed a better deal at the end of the month. Each dealership operates differently and offers special incentives depending on their sales metric. This old wives tale is a thing of the past, and shouldn’t influence your new car purchase.
Myth #5: You need to buy now or the deal will go away
Every month it seems a new car is being released or an old model has been reintroduced. In my opinion, there is never a lost opportunity when it comes to car buying. When one deal goes out the window, a new one arrives next week with open doors. You shouldn’t put pressure on yourself to meet the criteria of a certain deal. In order to buy a new car successfully, you have to negotiate firmly. Worst case, just walk away. By next week there will be a new deal waiting for you.
Save money and time by becoming an informed buyer
Debunking these five myths about buying a new car will hopefully guide you towards making the right new car deal. Buying a new car is a luxury most buyers dream of, but should not be clouded with misconceptions. You need to find the right car for you. Whether it takes months of research or you land a deal within minutes, buying a new car is worth the process.
To discover more tips on buying a new car, check out the top tech upgrades you should look for on your purchase.