Searching for a new car is a fun and exciting time. After all, dealerships are filled with new cars that offer the latest in features and in technology. However, there are some common myths that many new car buyers believe to be true. Today, we will sit down and debunk 5 of the top myths associated with buying a car.
“Cash is King”
When it comes to buying cars, many of us have heard the term “cash is king”. However, it’s important to know that a dealership does not care about “cash”.
The dealership will get paid right away, whether you pay for the car in cash or if you finance it. Dealerships will actually make more money from financing consumers as well.
“The best time to buy is at the end of the month”
Many dealerships incentivize their sales efforts by telling consumers that “right now” is the most affordable time to buy. At the end of each month, dealerships can get bonuses for selling a specific amount of cars. If the dealership has already met their quota for the month, they will have 0 incentive to offer you favorable pricing.
“Red cars get higher insurance premiums”
The color of a car has no factoring in the insurance premium you pay. Often times, dealerships will also mark down the price of a car if it is red in color. Instead of worrying about the color, you will need to worry about the model of the car and the engine inside of it.
“You can find the best deals online”
Many dealerships rarely often advertise their specials online. In order to receive the best deals possible, you need to be on top of new vehicle specials. Take a look at other sources such as the newspaper or radio ads as well.
“I can’t negotiate with the dealership”
It’s important to remember that as a buyer, you have the upper hand in any negotiation process. You have the money the dealership needs for their product. Be sure to research the price of the vehicle you are looking at and see what similar cars have been selling for.
If you are looking to buy a new car but are in need of financing, CrediReady can help. Our nationwide network of trusted dealers and verified lenders work with buyers in all credit situations. Take a moment to fill out our free no-obligation loan inquiry form and start shopping for your dream car today!