When you are in the car business like I am you get questioned on the automotive industry all the time. One of the things that I want to address here are some car buying myths. I have heard all kinds of crazy beliefs about the car industry that I thought I would clear up some of the myths that car buyers believe to be true.
Some Common Car Buying Myths Dispelled
One Price Car Dealer Car Buying Myths
I have had people tell me that they don’t like the car dealer experience so they prefer to go to one of those “One Price” car dealers also known as “Haggle Free” or even CarMax to buy a car. They feel that these types of car dealers charge the lowest price and they don’t have to negotiate or haggle with a car salesman. They believe that they are getting a great price and don’t have to worry about any car dealer scams. Well, think again. The “One Price” car dealer has built their profit into your purchase. They show a price reduction from M.S.R.P. which is a price above invoice that allows then to make a profit. Granted you are not paying sticker price, but the price of the car is only one aspect of potential profit for the car dealer. They can still make a very nice profit on car dealer financing, warranties, interest rates, and accessories.
When there is less profit being made on the car purchase (front end of deal) there is naturally more emphasis on the other opportunities for profit (the back end of deal). A car buyer that follows the Steps to Buying a Car can usually buy a car much cheaper than they can at a “One Price, Haggle Free” car dealership. The marketing efforts of these “One Price” car dealers have been very successful in making the customer believe that they are selling the car for a great price and they don’t play the standard car buying games. When the car buyer believes that the car buying process at these are fair and without car scams they are sure to overpay for the car, financing, car dealer fees, dealer prep fee and all the car dealer add-ons.
I Can Return The Car to the Dealer Car Buying Myth
Many believe that they have 3 days to return a car to the dealer if the change their mind or if there is a problem. This is a very common car buying myth that people don’t find out about until they try to return a car they just bought from the car dealer. No, you can not return a car to the dealer, that is a car buyer myth that I have written a article about that you can find here…….Returning A Car To The Dealer.
Car Dealers Price the New Car Window Sticker Car Buying Myth
The window sticker or it’s formal name the Monroney Label is required by law and is printed by the manufacturer. The car dealer has no input whatsoever on the price of the car that is printed on the window sticker. The price of the car is determined by the manufacturer and is the same price for every car dealer in specific region. This is one of the often asked car buying questions and myths. You can take a look at this post….. What is a Monroney Label.
I Saved A Bundle Buying a Demonstrator Car – Car Buying Myths
People that buy a car dealer demo car do so because they believe they are saving a lot of money. You can save a tidy sum of money when you buy a demo car, but most car buyers don’t. Most demo buying car buyers are basing their savings on the M.S.R.P. of the car. When in fact you can often times buy a brand new car for the same amount many buyers pay for a demo car. …………Should I Buy a Demo Car
The Car Salesman Got Me A Great Deal Car Buying Myth
Sorry about this one, but the car salesman sold a car and he or she did whatever they had to do to sell you a car. Your perception is what is important to the your car salesman and that is second to selling you a car. I think some car salesmen could have a career on Broadway if you they pursued an acting career. The best car salesmen and car saleswoman are experienced in making your feel like you got a great deal and that will in turn have you referring customers to them. The car buyers perception is everything. The car buying myth that the car salesman got you a great deal is your perception of the experience, because a good salesman is trained to sell you a car and make as much profit as possible because that is how they get paid. Their commission is their first priority.