Buying a car can be a complex process, especially for those who aren't all that au fait with the automotive world. Wesley Procter, sales manager at used car company getWorth, busts some common car buying myths and offers advice for your next transaction.
1. Cash offers
Many believe paying with cash can secure a better deal on a car. However, dealers often earn commissions from banks when they arrange financing, making cash deals less attractive to them. Procter notes that while cash purchases indicate a higher likelihood of completing the transaction and simplify the process, they do not always lead to better prices. Cash remains crucial for purchasing older cars, as banks rarely finance vehicles more than 10 years old.
2. Lowest price assumption
While finding a good deal is important, the lowest price does not always mean the best deal. Factors such as age, mileage, specification and condition of the used car need to be considered. Procter highlights that cars requiring reconditioning should be priced lower. Trust in the dealer and the terms of the finance deal also play significant roles in determining the overall value of the purchase.
3. List price and book value misconceptions
New car manufacturers suggest retail prices and used cars have “book values”, but relying solely on these can be misleading. Procter explains new car discounts vary by brand and model, with potential savings up to 25%. Researching promotions and comparing prices of demo and one-year-old models can lead to better deals. For used cars, the book value is an estimate based on average mileage and market prices may differ significantly.
Understanding these common myths can help buyers make more informed decisions during their car buying process.
Three myths you need to know about before buying your next car
Buying a car can be a complex process, especially for those who aren't all that au fait with the automotive world. Wesley Procter, sales manager at used car company getWorth, busts some common car buying myths and offers advice for your next transaction.
1. Cash offers
Many believe paying with cash can secure a better deal on a car. However, dealers often earn commissions from banks when they arrange financing, making cash deals less attractive to them. Procter notes that while cash purchases indicate a higher likelihood of completing the transaction and simplify the process, they do not always lead to better prices. Cash remains crucial for purchasing older cars, as banks rarely finance vehicles more than 10 years old.
2. Lowest price assumption
While finding a good deal is important, the lowest price does not always mean the best deal. Factors such as age, mileage, specification and condition of the used car need to be considered. Procter highlights that cars requiring reconditioning should be priced lower. Trust in the dealer and the terms of the finance deal also play significant roles in determining the overall value of the purchase.
3. List price and book value misconceptions
New car manufacturers suggest retail prices and used cars have “book values”, but relying solely on these can be misleading. Procter explains new car discounts vary by brand and model, with potential savings up to 25%. Researching promotions and comparing prices of demo and one-year-old models can lead to better deals. For used cars, the book value is an estimate based on average mileage and market prices may differ significantly.
Understanding these common myths can help buyers make more informed decisions during their car buying process.
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