3 Car Buying Myths You Need to Stop Buying Into

You can ask just about anyone you know for advice on buying a car and get a long list of tips and tricks. But the reality is that most of these commonly held beliefs are actually myths, and they could end up costing you more if you believe them.

Never Trade Your Car

There are a lot of naysayers out there who believe that a dealership will rip you off if you trade in your car. Instead, they tell you that a private sale is the only option for getting the value that you deserve. But this myth is one that could result in you losing a fair amount of cash. There are other factors to consider when trading in a car, aside from the dollar for dollar comparison.

For example, most states offer tax advantages for vehicle trade-ins, which allow you to pay less in sales tax on your new vehicle. You’ll also save a lot of hassle by trading, since you get the value right then applied to the purchase instead of dealing with multiple potential buyers who want to test drive the car, take it to a mechanic for an inspection, and offer you less than its listed price.

Always Choose the Rebate

Dealerships often run specials for new models, and some well-qualified buyers have options. You can either choose a lower interest rate for the life of the loan or opt for an extra cash rebate incentive or the dealership’s special financing. Some buyers tell you that the cash rebate is always the way to go, but it’s important to compare them to decide which is best for you.

Taking off part of the cost of the car is certainly a great choice if you don’t have as much cash to spend up front, but you could wind up with more money in your pocket by choosing the lower interest rate. Spend a few minutes calculating the cost difference for monthly payments and the overall amount of interest you’ll pay to make sure you get the better deal.

Wait Until the End of the Month

This common myth is one you’ll hear from many people. It’s similar to the idea that police officers have to meet a quota, so they give more tickets at the end of the month. But most salespeople are willing to give the same great deals to buyers on the first day of the month as they are on the last day of the month.

You may end up having to wait longer to even talk to a salesperson at a dealership on the last day since other buyers believe the same misconception. Save yourself the time and trouble by buying a car anytime you want.

The best advice for car buying that actually is true is to find a car that works for you and your family and is available at a price you can afford. It’s not smart to walk into a dealership expecting to get a high-quality vehicle at a fraction of the cost that it’s worth since you’ll end up leaving empty-handed. Instead, do your research and plan so you can leave with the perfect car that meets your needs.

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