Many used car buying customers assume that when they go to a used car dealership to buy a vehicle, they can’t trust the car salesman and all add-ons that the car salesman is selling them is a scam. For some reason this has become a common misconception, and unfortunately it gives the car dealerships a bad name. Here are some common myths about buying a used car from an Idaho Falls dealership, which you should know about before starting the shopping process.
- When the salesman goes to check with the manager, this is all just an act
Why it’s a myth: Not every time that the car salesman goes to the back office he is messing with you. Although there is usually room to negotiate, the car salesman usually does need to get approval on price changes before moving forward. Most people think that this is some kind of psychological game, and it may be at times, but not always.
- Extended warranties and additional coverage is a rip-off
Why it’s a myth: For some reason, most of us tend to think that when we are being sold an add-on product, that it’s some kind of scam. That isn’t necessarily the case though. Extended warranties can be a great thing for used cars….and then sometimes the extended warranties won’t even be used. With extended warranties, you never know if you’re going to use it or not. It’s the same concept as insurance where you pay a premium for a service that may or may not be used. Don’t be too quick to judge with extended warranties because they can offer a great benefit, if used.
- Kelly Blue Book is a definitive price point that should be used as 100% certainty for the value of the car in Idaho Falls
Why it’s a myth: Kelly Blue Book is a great guide to give you an idea on what you’re used car is worth; however the value of it may not be what the market price actually is. Usually this discrepancy in price is because of the location of the vehicle. Kelly Blue Book has done its best to adjust for the value based on the location of the car; however they’ve only been able to break it down into 101 different regions. In order to get the true value of your vehicle, you’ll need to look in the local classified, or online such as Craigslist, to find out what the market price actually is for the vehicle in Idaho Falls. Going to used car dealerships in Idaho Falls isn’t the best way to find the value of your vehicle, as the retail price and private sales price of a used car vary significantly.
- Paying for the used car in cash will get me a better deal
Why it’s a myth: Paying cash is a great way for finalizing the sale and the car is now 100% yours; however, the used car dealerships in Idaho Falls are able to make money when they finance the car for you.
There are 2 different rates in which the dealerships are working with….the rate at which they buy the money at, and the rate which is assigned to the contract. For example, if you’re approved for a rate of 3%, the dealership might set up the contract for 5%. This means that the dealership will make 2% off of the loan, paid to them by the bank. Also, usually there is a flat fee, usually between $100 and $250, which is paid directly to the dealership for preparing the loan paperwork. So, if you’re paying in cash, the dealership may be losing money by not getting the financing set up with a local lender.
Hopefully these myths are helpful to you, and you can successfully find a used car from an Idaho Falls dealership for the price that you’re happy with.