If you’re in the market for a new car, but honestly don’t know where to start, we’ve got some information that will help you navigate through the confusing world of car dealerships. After buying a home, a car is typically the next biggest investment people will make, which is why it’s so important to get the best deal while not getting taken advantage of in the process.
When people have negative experiences purchasing a car from a dealership, they usually have to do with dishonest or pushy salespeople. But, if you can cut through the sales pitch to get down to the facts, you’ll put yourself in a better position to negotiate. So, keep your ears open for these four common lies salespeople might tell you in order to close that deal.
1. Financing Has To Be Through The Dealership
False! There are plenty of banks and credit unions that offer loans for cars and while the dealerships would love for you to finance your loan through them so they can collect the interest, it might not always be your best option.
While a dealership might claim that you’re going to get a better deal on a car if you finance it through them, it’s worth checking out other options. In fact, dealerships might even inflate the terms of their loans to work in their favor. And, don’t set foot into a dealership until you know your credit score, which partly determines the interest rate you’re eligible for.
2. Beware Of The “Limited Time Deal”
It’s a classic move to try and stir up a sense of urgency, but don’t buy into it (literally). Of course, dealerships want to move inventory as quickly as they can because that’s their job. But, using phrases like, “This deal won’t last!” or “All 2016 models are priced to move to make room for the 2017 models!” is nothing more than a sales tactic to persuade you to buy a car sooner rather than later.
The truth is that dealerships are eager to keep inventory rotating—no matter what time of year it is. That’s good news for you, because there should always be some promotion that you’ll be able to take advantage of!
3. Awards Don’t Really Mean Much
If you’ve seen any car commercial lately, then you probably were subjected to a list of all the awards that particular car has won. Motor Trend, JD Power and Associates, Consumers Digest, and Consumer Reports are just a few of the many companies that give out the awards, which are based on a variety of factors.
Take the awards with a grain of salt because, as reported by The Wall Street Journal, auto companies often have financial ties to the award-nominating companies. Rather than relying on awards alone, do your own research by reading reviews and buyers’ guides before you choose a car. Consumer Reports is a good resource for new and used car reviews and ratings, broken down into category, year, make and model.
4. The Estimated Gas Mileage Can Be Misleading
Gas is a fairly large percentage of your total automotive expenses—meaning it’s important to consider what type of gas mileage your potential new ride is able to provide. Since the 1970s, the Environmental Protection Agency has been responsible for regulating fuel economy in the United States. But, according to information released in 2009 by Car and Driver, nearly 85 percent of the miles-per-gallon ratings actually come directly from the manufacturer and are no longer tested by the EPA.
But, of course, manufacturers continue to have a vested interest in making sure their cars are fuel efficient. That’s why they are tested on highway driving, city driving and a combination of the two. Just make sure when you’re looking at the sticker on that new shiny windshield that you pay close attention to which gas mileage number is highlighted. Manufacturers are able to choose, so reading the fine print is imperative.
While there are plenty of honest car salespeople, you still have to do your research before you buy. Keep these common lies in mind when you purchase your next car, and you’ll be on your way to making an informed decision.