top myths about buying a new car
TRANSCRIPT
The process of buying a new car is
a difficult one for many consumers,
and for very understandable
reasons. After all, you’re
committing yourself to years of
monthly payments. What makes
the process even more challenging
is the large amount of misleading
myths and misinformation in
circulation about buying a vehicle.
Let’s look at some of the more
common fallacies out there.
When buying small electronic devices, extended warranties tend to be useless, as these gizmos often
have a very low failure rate. Many people are aware of this, and mistakenly apply the same logic to car
warranties.
An extended warranty, preferably one backed by the manufacturer, will often pay for itself by saving
you expensive auto repair bills in later years.
This myth takes two forms:
1. Some people believe that they have a contractual obligation to have their car serviced at
the dealership where they bought it.
2. Other people believe they’ll get discounts on maintenance service from the dealership
where they purchased the car.
To put it simply: Neither belief is true.
Allegedly, nobody wants to
trudge around a car dealership
when it’s raining, and this leads
to desperation on the part of
salesmen who need to meet
their quotas, even if they have a
make a profit-cutting deal.
The problem with this theory is
that it has been widely
circulated. As a result, car
dealerships often fill up with
eager buyers on rainy days—
which defeats the purpose of
visiting during these times. Also,
you’ll get rained on.
It seems logical to avoid buying the first year of a given model. After all, the model has no track
record, so how do you know it’s not a complete lemon?
The truth is, car manufacturers put their vehicles through an enormous amount of testing prior to
sending them into the market.
A lot of businesses prefer cash upfront,
so it seems to make sense that this
would hold true for car dealerships as
well.
The truth is, dealerships generally prefer
you to arrange a financing plan with
them, which increases their profit and
qualifies them for bonuses. There’s no
incentive to cut you a cash-only deal.
It’s a very old trick: The consumer is
hammering out a deal when—
WHAMMO!—he or she mentions at the
last minute that they have a trade-in.
The theory holds that you’ll get more for
the trade-in if the salesman agrees to
terms before calculating the value of
your old vehicle.
In actuality, the trade-in value of the car
is fixed—no matter when you mention it.
The foursquare is that sheet of paper
divided into four large boxes, each with a
dollar amount associated with your deal
(e.g., down payment, monthly payment).
It’s a useful tool for visualizing the
developing deal, but it’s not really a legal
document. This means you can back
away from the deal if you decide you
don’t like what you’re seeing.
Desert Sun Auto Group is a leading automotive dealership in the state of New Mexico,
offering a wide selection of new and used Chevrolet, Buick, Chrysler, Cadillac, GMC,
Dodge, Jeep, RAM, and Toyota vehicles. The dealership serves the Greater New Mexico
and West Texas areas. Visit www.desertsunmotors.com.