Car Buying Myths, Debunked

The car buying market has always been shrouded with something of a cloak of secrecy. Whether it’s the car manufacturers and their bending of the truth – we’re talking about you and your emissions, VW – or the tall tales of the used car salesman, the whole industry is full of rumor and supposition. And because of this, a lot of myths come up on a regular basis – in car blogs, forecourts, and even on auto TV shows.

With this in mind, we thought we would take a look at some of the most common myths about buying a car that could be costing you money. Let’s debunk some of the major culprits – and see if you can use some of this relevant info for your next car purchase.

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The ‘new car depreciation’ myth

This myth is a big one that persists and pervades almost everywhere. ‘Never buy a new car’ say the experts, who point to the fact that depreciation occurs as soon as the vehicle leaves the forecourt. Now, this depreciation does occur – but not to every single new car.

Luxury cars might offer you a huge saving if you buy used, for example, but with the mainstream vehicles, there isn’t much in it at all until you hit the 3-4-year-old period. And don’t forget – there is often a lot more room for negotiating a discount on a new car than there is in a used vehicle, where margins are so much tighter.

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Never trade in

The standard advice for selling a car is to do it privately – and never trade-in to a dealer. This myth stems from the fact that statistically, selling a car privately tends to earn you more money. However, the stats don’t tell the whole story. Selling a car on the private market takes a lot of effort and time – and you need to account for that time regarding money.

Private buyers are just as keen to get a bargain as you are to get your asking price, and the amount of haggling you will have to do can be tiresome. And, when you bear in mind that many states give you a tax advantage for trading in, you can see it’s at least worth checking out the numbers from a dealer.

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The financing myths

Plenty of people out there are suffering from financial hardship or poor credit ratings, so think that a new car is out of their reach. However, it’s not strictly true that financing isn’t available. You can get auto loans for bad credit ratings, for example, and funding isn’t restricted to new cars – you can get t for used vehicles as well.

There are also plenty of myths about auto financing in general – such as you should never take the dealer’s options. This is due to something known as the ‘dealer reserve,’  but the truth is that this reserve can be no more than what you would expect any other lender to charge. You do need to be careful when taking out a loan direct from the dealer, of course, but as a final point, being sensible and checking the numbers are the primary necessities of buying a car anyway.

 

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