A lot of people feel anxious about buying cars, so they rely on myths that they believe will help them get better deals. Unfortunately, following these four myths could waste your time and money.
Dress Like You Don’t Have Any Money
This myth might have made sense once upon a time, but you can ignore it now. The idea is that salespersons will charge you a higher price if you’re wearing nice clothes. By dressing like you don’t have any money, the salesperson won’t waste time trying to squeeze a few more dollars out of you.
There are at least two reasons why this myth doesn’t work. First, the dealership is going to look at your credit report to learn about your financial health. That report matters much more than the clothes on your back. Second, most salespersons are smart enough to know that they can’t judge people by how they’re dressed. After all, Steve Jobs had billions of dollars, but he preferred wearing jeans and t-shirts to suits, and he rarely took showers. Any dealership basing price on appearance would have lost a lot of money on that sale.
Never Buy New
While it’s true that new cars depreciate quickly after you buy them, you shouldn’t base your decision on that one factor. New cars often come with advantages that you will not get from older models. By getting the newest model, you can expect to benefit from the car’s:
- Better fuel efficiency
- Improved safety features
- Longer life
You’ll probably spend a little more up front, but you’ll also get more for your money.
Always Shop on Rainy Days
Visiting the dealership on a rainy day only assures that you will get wet. A lot of people, however, think that they can get better deals because no one else wants to shop in the rain. When those thrifty shoppers arrive, they usually find a dozen or so like-minded people who also thought they could save money by shopping in the rain.
Never Use the Dealership’s Financing
According to this myth, car dealerships want to do more than just sell vehicles. They also want to make money by selling you loans.
The truth is that dealerships usually work with dozens of banks to make sure they can give their customers affordable financing options. A dealership might make a small amount of money from its loans, but it’s ultimately concerned about selling more cars.
The only way to make sure you get a lower interest rate is to talk to your bank and the dealership. Depending on your financial circumstances, the bank may have a better deal for you. Then again, the dealership may have loans that are just as affordable, if not more so. If you rule out the dealership automatically, you may end up spending more money than necessary.
The internet makes it relatively easy to research vehicles. Before you head to the dealership, go online to learn more about the models that interest you. Objective information will serve you better than questionable myths.