Top 5 Myths About Buying a New Car
Pondering over buying a new car can result in many exhausting debates within one's mind, and we have all been there. However, it all comes down to the age-old question; to buy a new car or a used one?
Both options have their fair share of myths and misconceptions regarding them. In this article, we will debunk the ones that go around buying new cars to help you make a more informed purchase decision. After that, we will present you with recommendations for our favorite dealerships, which also happen to be the best and most trusted in the U.S.
Top 5 Myths About Buying a New Car
Myth #1: Online car purchase is cheaper
Thanks to the pandemic, buying cars online has become sort of a trend with online operating dealerships like Carvana. The trend certainly has its perks. It facilitates the whole purchase and finance process. You only need to upload your documents, process your auto loan online, and get your car delivered to your doorstep.
The important question, though, is it cheaper? Not necessarily. Online advertisements can be appealing with low prices for new cars, but such advertised prices usually do not include the interest rate, warranty costs, or trade-in values. Because of this, you may end up spending a few extra hundreds, if not thousands.
Myth #2: Paying cash is always better
Another misconception goes around paying cash. Many believe paying for a new car full in cash is cheaper. However, dealerships actually encourage their customers to finance cars as they might get good deals and discounts on their financing options.
Unless your dealership offers you an all-cash incentive or cashback benefits, then paying in cash could be your best option. It is best you know all your options before making a hasty decision.
Myth #3: It is better to finance through a bank than a dealership
Many believe that dealerships will only rip you off when it comes to financing and that it is better to finance through a bank. That is simply untrue. There are many legit dealerships out there that will offer you flexible finance options as they are partnered with multiple lenders.
Banks are known for their fixed interest rates, and these myths drive people right to them instead of the generous offers dealerships can provide. For instance, some dealerships might offer you a 0% APR, while banks will certainly never do that.
Myth #4: Buying at the end of the month will land you a better deal
Many people rely on the fact that buying new cars at the end of the month will land them better deals, as salespeople may not meet their quota by then and will offer discounts. But actually, no such thing is guaranteed as each dealership operates differently and will offer different discounts. Such a myth should not impact your car purchase decision.
Myth #5: You will lose your deal if you do not buy now
Every month comes with a new car model release, and with every new release comes a new deal for older and newer cars. You should not be pressured into making a deal you are not sure of. If you believe you may lose this deal if you do not take it at the moment, well, you are probably right. But that does not mean that a better deal could be making its way to you.
It's best to be patient with your car buying process so you can end up with the right deal for you and, most importantly, the right car.
Best Car Dealerships Recommendations
Now that we have debunked the most common myths regarding buying a new car and you have all the facts have a look at our top dealership recommendations that will help you finance your new car with the best market prices and vehicle selections.
CarMax is our top recommendation for one of the best auto dealerships in the U.S. CarMax is one of the largest vehicle retailers in the country as it offers over 55,000 vehicles in its vast inventory.
CarMax earned an A+ rating from the Better Business Bureau, which certifies its legit services. Buying from it will also land you several benefits, some of which include:
- No haggling buying experience
- Financing is available for any car they sell
- A 5-day money-back guarantee
- Each car comes with a complimentary 30-day warranty
- Wide variety of makes, models, and model years
CarMax is a great dealership to finance through, as it has its own finance division in addition to other third-party lenders like Capital One, Chase Bank, and Ally Auto. So you will be offered many auto loans offers at good rates.
2. Bev Smith Kia
Bev Smith Kia dealership is our second best dealer recommendation. It has been delivering the best automotive services for over 60 years, earning an A+ rating and accreditation from the Better Business Bureau.
Bev Smith Kia offers you the following services:
- New & used car purchase
- Car leasing
- Trade-in and selling
- Service and parts
- 10-year/100,000-mile warranty
The dealership will also finance your new car purchase, allowing you to borrow up to $60,000 across an 84-month loan term. It is partnered with several lending institutions to help you get the best finance deal.
DriveTime is our last car dealership recommendation. It has over 130 dealership locations across the U.S, with over 11,000 cars to shop from. DriveTime is one of the most trusted in the country, also earning an A+ rating and accreditation from the Better Business Bureau.
Buying your new car from DriveTime will provide you with the following benefits:
- 5-day money-back guarantee
- Basic warranty
- DriveCare Program
- Powertrain coverage
- GAP Coverage
- 99% approval odds
DriveTime will personalize your auto loan deal to your credit score and financial status as it requires no minimum credit score. You will be able to borrow up to $35,000 and trade in your car for credit.