Some myths are so unbelievable that the average person thinks they’re ridiculous, like the Loch Ness Monster, or Sasquatch. Of course, you’ll still find some people who believe them no matter how silly they are.
But there are other myths out there that are so prevalent that almost everyone believes that they’re true, even though they aren’t. When it comes to myths about buying a vehicle, there is way too much misinformation out there. Here are seven myths about buying a vehicle that almost everyone believes are true:
1. It’s better to bring your own financing
This is a common misconception and ignores the fact that dealerships are incentivized to offer their own financing through manufacturer or bank discounts. This means you could potentially get a better deal on a vehicle if you use the dealer’s financing, and possibly a lower interest rate through the manufacturer’s financing incentives.
2. You should buy a car when it’s raining
This is an old myth that’s no longer true partly because so many people think that it is. People used to assume that you could get a better deal during bad weather because a dealership would be slow that day. Unfortunately, lots of people think this, so when it rains a lot of people head in to try to get a good deal, making this a self-fulfilling myth.
3. Hide your trade-in until you come to an agreement on price
This myth is based on the idea that you should negotiate the price of the vehicle you want first, and then let the salesperson know about your trade-in after the fact. Not only will this add hours to the time you spend on the transaction, it also won’t get you a better deal because you’ll still get the same trade-in value for your vehicle that you would have gotten to begin with.
4. You’ll get a better deal if you pay cash
This is probably the most common myth in the world about car buying. The only time this is true is when manufacturers are offering cash only incentives. Otherwise, paying cash won’t get you a better deal because dealers are incentivized for financing and leases, so a cash deal actually makes them less money on a transaction. Unfortunately, cash is not king.
5. Auto salespeople make a fortune
Too many people believe that auto sales reps make a small fortune on car deals, but the opposite is likely true. On many transactions, the salesperson only makes what’s called a ‘mini’, which is a bare minimum commission on every car sold. A mini can range from $50 to $200 dollars, and coupled with a low or non-existent base pay, car salespeople are much more working-class than you might think.
6. Try pitting dealerships against each other for a better price
The interesting thing about this myth is that the people who spread it seem to think that they’re the first ones to have thought it up. The truth is that dealerships are very well aware of their competition, and always try to differentiate themselves in their own ways. By trying to pit dealers against each other, you’re creating a confrontational approach that’s likely to backfire. You’ll catch a lot more flies with honey than you will with vinegar.
7. Car salespeople don’t want to help you
This myth is very frustrating for auto sales professionals because it always put the customer on the defensive during a transaction. While there are some dishonest elements out there (like in all professions), the majority of automotive salespeople are hard-working folks providing for their families, who just want to make you happy. The best compliment we can get is earning your business, and we know that helping you is they key to that.