Car buying myths to dodge as a first-time buyer

Posted on Thursday, January 10, 2019 - 14:22

Getting your own wheels may be something you want to tick off your list for the year. However, from the moment you announce that you are buying a car, you will receive a bucket load of credible and questionable advice on how to go about it. Here are three myths to dodge to bring you one step closer to purchasing a car.

Your safest bet is to get a car at a dealership

When it comes to buying a car the first thought that most people have is to head to their nearest dealership to secure their new wheels. According to the Royal Commission, 39% of cars were financed through a dealership.

Purchasing a car on the used car market or privately can raise many questions which are only fair of you to ask, but it is also possible to get a good deal when you put in the research, running backgrounds, and compare your options. There are pros and cons that come with purchasing a car at a dealership that you need to be aware of before finally settling. Not all dealerships offer a great deal or have your best interest at heart.

Buy before closing time

Everyone wants a good car deal that can help them save in the process. Buying before closing time is a myth similar to that of buying a car during a rainy day in an attempt to lock in a good deal with a sales agent who desperately wants to close and go home. You may have angled this idea, but don’t be surprised to find many agents are willing to take their time when it comes to securing a deal. Waiting for the closing time could also work against you as this means you are taking away from the sales agent's time to go home. The last thing you want to do is deal with a grumpy sales agent.

A low sticker price means you have a better deal

The common mistake that some car buyers make is to focus on the sticker price or the low monthly repayments that they will be making when they take out finance. This can be misleading and could also lead to costly mistakes. It is vital to look beyond the price tag or the low payment. For example, you may have spotted a great deal for a car that is worth $30,000 but without considering the 7.1% interest rate that comes with it over the loan term you could end up paying $35,940 over a 5-year loan term.

Check other factors that will have a lasting impact on your repayments such as the interest rate, ongoing fees and charges on your car loan. Always remember to compare your options to get the best deal that is suitable for you. You can also make use of a car loan calculator that will give you an estimate of how much you will be paying throughout a loan term.

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