Buying a new car is a considerable investment, but with so many myths, it can also be very confusing. Today we are looking at ten new car myths and debunking them!
1. Buying At The End Of The Month Gets You A Better Deal
The “end of the month” tip is a common misconception in many industries. Many people believe that companies and organizations have a set quota to meet each month. As the end of the month approaches, the myth is that prices drop to fulfill any quota shortcomings.
There are multiple problems with this theory –
- Dealerships can meet quotas early
- Dealerships regularly fail to meet “quotas” and markup car prices to make up for this loss
- End-of-the-month shopping leaves you limited time to comparison shop
2. Your New Car Warranty Covers The Whole Shabang!
Not all new car warranties are the same, but no warranty covers every aspect of your new vehicle.
A “Bumper-to-Bumper Warranty” is usually only valid for a set period but does not cover regular maintenance.
A “Powertrain Warranty” offers longer-term coverage but is limited to the engine and transmission coverage.
New car warranties will also never cover issues resulting from careless driving or vehicle abuse.
3. You Must Service New Cars At The Dealership While Under Warranty
New car owners commonly believe they must service their vehicle at the dealership for the warranty to remain valid. The truth is that dealerships cannot legally demand that you service your vehicle at the dealership under the Magnuson-Moss Warranty Act of 1975.
4. The Factory Invoice Price Is The Dealer’s New Car Cost
The factory invoice price is what the dealer is invoiced by the factory when purchasing vehicles, but it is not the bottom-line price a dealer will take for a vehicle. Go into the dealership knowing the dealer’s expense for the car, and you have room to negotiate knowledgeably.
5. Never Finance Through The Dealer
Have you been told never to finance through the dealer? Many people are given the same spiel and told that dealers mark up prices to make additional profit off the financing. This practice of marking up pricing is done, but not by all dealers. The best practice is to shop around for financing, know your credit score and understand your options! Some dealers can offer even better financing for good credit because they have more contacts in the banking arena.
6. You MUST Change Your New Car’s Oil Every 3,000 Miles
If you own an older vehicle, you may still need to change your oil every 3,000 miles, but there is no hard proof that modern cars must have their oil changed every 3,000 miles. Yes, your car’s oil does need changing, but according to many, the average car today can go 10,000 miles before needing an oil change!
7. It Is Never A Good Idea To Buy New
We have all heard that as soon as a new car leaves the lot, it depreciates considerably, and it is far cheaper to buy a used car. The truth is, though, that it depends on the current state of the auto market and the vehicle you want to purchase. Sometimes, the best deal for you with rebates, discounts, and trade-ins may be a brand-new car!
8. Choose The Rebate Instead Of The Lower APR
If you have the choice between a rebate and a lower APR, you may want to go with the rebate, but do not get lazy – do the math first! The rebate may be the better deal for you, but sit down and run the numbers because, in the long run, you could save a lot more with a lower APR.
9. A Manual Car is More Fuel Efficient Than An Automatic
Decades ago, there was a difference between the fuel efficiency of automatic and manual cars, but that is not the case. In some instances, an automatic may even be the more fuel-efficient vehicle.
10. Buying At The End Of The Year Gets You The Best Deal
Buying a car at the end of the year will not get you the best deal. The best deals on vehicles are usually available when the newest model of that vehicle is released. With new model cars coming out, dealers must get rid of their older models to make room on the lot.
Do not believe everything you hear. There are many new car myths out there, but many are little more than fearmongering and baseless opinions.