Car Buying Articles

Car Buying Myths and Misconceptions

Skip These Tips of Questionable Benefit


  • Myth: Rainy Days Make for Good Car Deals

    Myth: Rainy Days Make for Good Car Deals

    A dusty old adage is that rainy days are good for car shopping because the bad weather keeps away other buyers. In truth, the lot is jammed with people all thinking they are getting the inside track to a good deal. | March 25, 2013

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Our parents and friends give us a lot of great advice about life and (in some cases) about the best way to buy a car. But with all due respect to friends and family, some car buying advice is outdated — or just plain wrong.

After buying more than 100 cars for Edmunds.com over the past 12 years, I've had a unique opportunity to watch the rise and fall of car-buying myths. I've also spent time on car lots testing much of the car-buying wisdom I see bandied about on the Web and in forums.

Sometimes I cringe when I read these tips because I know that if people follow them, something is likely to backfire. So often, people think they have a silver-bullet solution for getting a super-low price on a car, but they miss the bigger picture of the new car deal.

The flawed advice I read seems to fall into two categories. The first is the mistaken belief in a "gotcha" style of car buying, where the buyer is somehow going to turn the tables on a car salesperson. The second category is made up of car-buying myths and misconceptions. Some of these tips might have worked at one time, but they have outlived their usefulness. Other bits of "wisdom" were never true, but live on as myths that are about as useful as believing in the Tooth Fairy.

Many car-buying myths stem from the same assumption: Car salesmen are trying to screw you, so go ahead and screw them back. If you really believe a salesperson is trying to pull a fast one, walk away. Find a good dealership and a good salesperson who will work with you on a good, straight-up deal. There are good car sellers out there, and they want your business.

Of course, you still need to be informed. Edmunds has tools and features, including up-front, guaranteed pricing through Price PromiseSM and True Market Value (TMV®) that make car shopping easier and more transparent than ever. Also, remember that your needs are very close to the salesperson's goal. You want a car and salespeople want to sell you one. Find a comfortable middle ground and you'll both be happy.

Here, then, is a collection of car-buying myths and dusty old tips you should dump:

1. Buy a car on a rainy day. The idea is that due to bad weather, no one will be on the car lot and the dealer will be desperate to move metal. One problem: Many people have heard this advice, which means the dealership is both wet and crowded. We recently ran this past a car salesman while both of us were standing in the rain. "Actually we're really busy on rainy days," he said. "Everyone thinks it's going to be empty."

Another variation of this myth is to go to a dealership just before it closes. Then, supposedly, the sales staff will agree to a lower price because they want to go home. In actuality, they'll work well past closing time to finalize the deal. Here are some actual good times to buy a car.

2. Hide the trade-in until you finalize the price of a new car. Then spring it on the salesperson. Do you really think salespeople haven't heard of this strategy before? And do you really think it will get you a better price? It doesn't work.

The best tactic is to compartmentalize the deal. Know the price of your trade-in by using TMV to get its actual worth and get as close to that as possible. If you don't like the offer for your trade-in, pursue other trade-in options.

3. Don't reveal that you're leasing until you negotiate the price of the new car. The assumption is that if you tip your hand early, a salesperson will snow you with leasing jargon and inflate the price of the car. One problem with that thinking: These days, lease specials abound, as shown on Edmunds' Incentives and Rebates pages. The savings on these lease specials are better than you would get by just leasing a car based on a low purchase price.

Another way to get the straight scoop on a lease price is to solicit quotes from competing dealerships, as described in our article, "Quick Guide to Leasing a New Car."

4. Be prepared to walk out. This is good advice for people who insist on shopping in person at a car lot. But it's no longer good advice in the Internet age, mainly because we don't recommend that you ever walk onto a dealership lot cold. Instead, use the Internet department and Price Promise for a hassle-free, low-cost shopping experience.

5. Read every word of the contract. If you follow this advice, you'll be there all day. Besides, most sales contracts are boilerplate that's regulated by the state's motor vehicle registry. It's not necessary to read all the words in the contract. However, it is absolutely essential to review all the numbers in the contract. For more on this, read "How To Review Your New Car Sales Contract."

6. Call the sales manager, tell him you're buying a car in an hour and demand his lowest price. The principle of this "game theory" approach is to pit dealerships against each other. Believe me, they are already well aware of the competition. Furthermore, this confrontational style is harder to pull off than you might think. Maybe it sounds fun to put the salesperson on the spot. But try it and see how far you get. Here's a nonconfrontational approach to car buying that will get better results.

7. Bring a cashier's check for exactly the amount you want to pay and say, "Take it or leave it." We like to imagine how cool and invincible we would feel by doing this. But if you bring a check with a figure you cooked up, you won't be leaving in a new car. Where did you come up with this price? Did you correctly add fees and taxes for all the options on a specific vehicle? How do you know the dealership wasn't ready to give you a price lower than the one on your check?

It's better to solicit Internet quotes, negotiate a good deal on an actual car, get a rundown of all the necessary fees and taxes and then bring a cashier's check. It's not a sexy power play, but it works. Better yet? Use Price Promise and skip the haggle.

Comments

  • bassrockerx bassrockerx Posts:

    i wanted to "buy" a car from a dealership that was about an hour away from my house. after renting a fiat 500 for two weeks (car was totalled was car shopping) i decided that i had to have the fiat but i could not afford a brand new one so i was shopping for used ones. i was per-aproved for a loan from a 3rd party so essentially i had cash in hand. I called the dealership and told them i lived far away and i was interested in the car and already had one and was shopping for a 2nd (kinda true they don't have to know that the 2013 i drove over there was not mine) and if we could agree on a price then i would drive over and buy the car. the "internet sales manager" told me that they would not agree on a price until i first test drove the car to make sure that i liked it. i told them i am very familiar with the vehicle and we just went round and i asked to speak with someone else that could help me but that guy refused so that was the end of the discussion! needless to say they did not sell a car that day! i ended up buying a Honda fit in-town and in the long run i guess it was a lot more practical and better for my family. so yes "be prepared to walk out" is still true when you are shopping on the phone/online at least when there is some distance involved after buying quite a few vehicles recently my best advice is don't be afraid to say no even if you are on a time constraint to have a vehicle there will be others and you will find one.

  • The best advice for buying a used car is preparation. Know what car you want and know what a fair price is. Use websites like Edmunds, NADA, and KBB to get an idea as to the value of a used car and use websites like autotrader and cargurus to get an idea of what other dealerships in the area are charging for the same or similar vehicles. Also if you have a trade-in do the same research on your current car as you're doing on the car you want to purchase. Too many people I know rely on their "I know a guy" car dealer to give them a fair deal. Well how do you know unless you do some research?

  • emajor emajor Posts:

    Today on "What's Hot", a 10-month old recycled car buying article. And a generic anodyne author-less review of the Sonata from the Edmunds motherhive. Yesterday it was a similarly flavorless review of the Malibu. Then the aging Elantra before that. Maybe tomorrow we'll get lucky and be served something spicy and "Hot" like the Versa!

  • Car dealers are sleaze-balls. Car salespeople, to keep their jobs, must toe the sleaze-ball line. A car dealer and salesperson will always try to get a feel for how informed (or stupid) the potential buyer and gauge their offer based on this analysis. The one strategic tool that buyers rarely use (and I have ALWAYS used) is this: if the deal isn't good enough, WALK OUT. 90% of the time, the sleaze-balls will phone you in a day or two and offer you a deal on YOUR terms. If they don't, there are other dealerships. But remember, you're negotiating with sleaze-balls!

  • 330i_zhp 330i_zhp Posts:

    @go for the neck - I disagree. While that may have been the case 20 years ago, today's buyers are too informed, and if they get taken on a car deal, it's their own fault for not doing their homework (especially with used cars, as pricing isn't as cut-and

  • evodad evodad Posts:

    I agree with gofortheneck. especially when it comes to used car shopping there will always be a better deal out there if you don't get the one you want. My wife and I just went through this a few months ago, haggling with the dealer on price, we didn't need the car at the time so we were only going to buy if we got what we felt was a good deal. All the dealer wanted to do was push the fact that 'it's only an extra $10 or $20/month, I got tired of their crap and we left. Within two weeks we found a similar vehicle with 20k less miles and more features for only $1k more than what we were offering for the one at the dealer.

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