Car Buying Myths Debunked

August 14, 2018

© Sonya Etchison | Dreamstime

A lot has changed with the automobile the last century, including how we buy them. There are many misconceptions about buying from a dealership that are based in tips that are outdated, yet we still follow many of them.  Over the last decade the professional car buyer has emerged as a champion for those who hate to negotiate with dealer s and these professional buyers want to clear the air on car buying myths.  For instance, the phrase "cash is king" has gone the way of the Yugo! Unless you are buying a car from a private seller, flashing cash is useless at a dealer. In this current competitive market, dealers aren’t making much on the cars themselves, so they must turn to other ways to make revenue and it namely financing.  That's not to say you'll get a bad financing deal but many dealers receive a fee from a lender for striking the deal (even on the low interest ones).  So if a dealer sees you are a cash buyer and therefore loses their opportunity to make some profit in the finance office, some may be less likely to wheel and deal on the car itself. Another outdated myth is to only service your car where you bought it. The truth is that if your new car is under warranty, that warranty is good at any dealer anywhere in the country, regardless as to where you bought your car. Another myth is to avoid sales tax by buying in another city or county. While it sounds like a no-brainer to buy from a dealer in a city or county with a lower sales tax, the taxing system doesn’t work that way. No matter where you buy your car the sales tax is assessed based on the area of registration not the location of the purchase. In other words, can't escape your city or county sales tax! Finally the idea of buying at the end of the month to get the best price.  This strategy comes from an old-school bit of car buying advice that says that dealers are more likely to offer you a bigger discount at the end of the month because they are trying to hit a sales quota. The truth is the all dealers have to pay the same price for the vehicles they sell.  You may get a better deal by shopping at a high-selling volume dealer but realize, they may have already made their monthly quota and may not be as willing to take a loss on a sale.

SOURCE: Jalopnik

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