Debunked! 10 Car Buying Myths That Won’t Actually Save You Money

Buying a car can be a high-ticket item that you’ll want to do research on to avoid wasting your money.

You might find great ways to save money on a new or used car, like manufacturer’s discounts or buying a vehicle at certain times of the year. But what advice won’t help you?

Here are a few car-buying myths you can leave by the side of the road when you pick out your new or new-to-you car.

You may think it’s a good idea to come into the car-buying process with a loan already approved by a lender like your bank or financial institution. However, the dealer could help you save more money.

Compare your options before committing to one or the other, and remember that the dealer may be incentivized to give you a good deal by the company’s financing to get your business.

You might think it’s a good idea to get a longer loan if you can pay less per month when you’re low on cash, but longer deals could hurt you in the long run.

You could incur more in interest costs by holding on to the loan longer, and you may also need to cover additional costs for maintenance and repair of your vehicle.

Those costs could add up, especially the longer you hold on to your car.

Many people think they’ll have more leverage to negotiate a good deal if they wait until the end of the month to buy a car.

Unfortunately, there isn’t as much incentive to buy at the end of the month compared to any other time of the month. Anyone selling a car can only do so much, no matter how much they want the sale.

So keep an eye out for deals and be ready to go regardless of what day of the month your car is on sale.

You might think you can pressure the salesperson at a dealership by walking out in exchange for getting a good deal.

But dealers now include the price of the car online, so you should be prepared with the costs of your potential vehicles before you even walk in the door.

Threatening to walk out might show you don’t know what to expect from the dealer and won’t help you keep more money in the bank.

You might think it’s good to wait until the end of the year when dealerships have to switch to new models, but dealerships typically aren’t willing to take a loss at any time.

You also might be surprised to find out that car dealerships usually switch to the new model year around September, four months before the actual year.

Instead of waiting until the end of the year, keep an eye on deals you can take advantage of throughout the year or buy a car when you need one.

You may be willing to spend a little more to get a new car, but don’t dismiss other options, especially used cars.

Used cars may only be a few years old or have limited miles on them. You also won’t have to worry about that initial depreciation in cost, which can be around 20% of a new car’s value in the first year of ownership.

You may think you have a great plan to shop for a car when it’s raining because customers won’t venture out in the rain, and dealers will want to finish a sale quickly.

But plenty of other buyers think it’s a great plan, which may cause the dealership to be busier than usual and not really affect the price of a car.

Buying a used car could mean you’ll want a low-mile vehicle as a top priority. But it’s good to take into account other considerations than just mileage. 

A car with higher mileage that’s been well maintained and hadn’t been in an accident may be better than a car with low mileage and an accident history or low mileage with little preventative maintenance.

It’s also important to check on the best deals for car insurance as some cars with lower mileage may still cost you more to cover with car insurance than other models with higher mileage.

You may think coming in ready to pay the full amount in cash could get you a better deal, but cash might not be king in some cases.

Instead, make sure you have a good credit score, which could open more avenues of financing for you. And it’s a good idea to check with the dealer about other incentives and options.

You may have great negotiating skills, but remember that you usually only buy one new car every few years.

Dealers, however, are used to negotiating deals daily and know all the tricks you think will work just for you.

Feel free to negotiate, but also be honest and upfront, which will make it easier for the salesperson to help you get the car you want. Save the hard negotiating to save money on your car insurance.

It’s important to research when you shop for a big-ticket item like a car to find out what you should do and avoid.

When creating a budget for your new car, remember to factor in gas, maintenance, insurance, and other costs. This can eliminate a lot of money stress from having a new car.