There's a lot of common myths in the automotive industry that simply aren't true. When it comes to buying a car, we've all herd stories about how to get the best deals at a used car dealership. But are the myths true?
Myth: Paying With Cash Will Get You Discounts
We've all heard the phrase "Cash is King" before. But is it actually true? Believe it or not, paying for a vehicle with cash will not get you any discounts. The truth is that credit is power! By having a good credit score, you gain leverage on your vehicle purchase and open up so many more buying options you wouldn't be able to afford by just paying cash. There's often a lot more wiggle-room when it comes to getting a good deal when you're financing a vehicle.
Myth: Only Buy A Car With Low Mileage
We’ve been taught that higher milage cars should be avoided at all cost, but that simply isn't true. When buying a car, you'll want to make sure you have a look at the Carfax report to learn about the vehicle's history. A higher milage vehicle that has been well-cared for and regularly maintained will last you longer and give you way less of a headache than a low mileage vehicle with no available history. Finding out the history of a car is far more valuable than just relying on its odometer reading.
To learn the history of a used car in Alberta, all you need to do is ask your sales representative for the Carproof report, which is included with each vehicle for sale at House of Cars. If the car lot or private seller you’re working with doesn’t make a CARFAX report available to you, you should walk away from the deal. You may be in for a bug headache.
Myth: Never Finance A Car Through A Car Dealership
Some people believe that seeking their own financing from their bank or credit union will get them a better deal. But if you have good credit, financing at the dealer can often make better sense than a private bank or credit union. Even if you have bad credit, why would you seek out a single lending option for your vehicle purchase when House of Cars has access to over 30 lenders? We can shop around for you and find you the best interest rate and lowest payment, which is something you won't be able to find by financing through your bank!
Myth: Buying A Car From A Private Seller Is Cheaper & Less Complicated
Some people think that buying a car from a used car dealership will result in them being taken advantage of and getting a worse deal than buying privately. Though it's true that private sellers don't have as much paperwork to complete, and the process is usually quicker, you as the buyer are not protected at all. House of Cars is required to sell vehicles that comply with AMVIC's standards. If you buy a car from a private seller and it breaks down tomorrow, you have absolutely zero recourse. A private seller also has no obligation to show you the vehicle's history report and can often hide the vehicle's issues, which you'll only figure out once a few days after you've taken the car home. Any car purchased from House of Cars comes backed with a Carproof report and has undergone a rigorous mechanical inspection prior to being listed for sale. Purchasing from House of Cars also gives you access to aftermarket warranties, just in-case something happens, which a private seller cannot offer you.
Myth: Buying A Car At The End Of The Day, Or End Of The Month, Will Get You A Better Deal
The idea is that the sales staff will be desperate to get home, so they'll be more willing to meet you at a more favorable price. That's an entirely reasonable human assumption, but it's perfectly ordinary for a salesperson to work well past closing time to make a deal. Some people believe that if they buy a car at the end of the month, a salesperson might be willing to give them more of a deal because they are eager to meet their sales quota. This is simply not true. Purchasing a car in the final days of the month will not garner you a better deal. The best way to get a good deal on the vehicle is to build up your credit score. This gives you access to so many more financing options and lower interest rates. Plus you can get better deals at any time of the month!
Myth: The Lower Your Payment, The Cheaper It Is
If you're a bit tight on cash, it makes sense to keep an eye on what you can actually afford each month. A $200 per month payment for 7 years is not cheaper than a $250 per month payment for 5 years. You'll actually be paying more money on that "lower payment" because of interest. Worse still, because most loans are front-loaded on interest payments, it's easier to end up "upside down" (owing more on the car than it's worth) with longer-term loans. The bottom line: be sure you know how much that lower monthly payment is costing you in the long run.
