the top myths about buying a vehicle: debunked
There are many myths and misconceptions about the car buying process. And while most of them are harmless and easy to ignore, some can end up costing the buyer a lot of time and money! Continue reading to learn more about the auto industry's most common myths and why you shouldn't believe them!
Unsure if you are ready to buy a new vehicle? Read our blog to help you decide: 5 signs it’s time for a new vehicle.
paying in cash will save you money
This is one of the most important myths to be debunked in the car-buying process. In fact, experts in this field actually advise people to walk away from a deal if the seller is encouraging them to pay cash. Car dealers profit way more from financing and leasing incentives than an all-cash offer. Any knowledgeable dealer will see a cash offer as a limited profit opportunity – making them less likely to negotiate the price with you.
So, don’t be discouraged if you need financing to purchase your new vehicle – you’ll have more options and discounts this way!
you need perfect credit to get financing
There isn’t a set credit score for financing a vehicle. In general, the better your score, the lower the interest rate you’ll receive. And it’s true, getting denied a loan is possible based on a poor credit score. But it doesn’t have to be perfect. In fact, credit scores in the mid-600s are still considered “prime” to most lenders and are more than capable of getting approved.
It might be worth waiting until you’ve improved your score before purchasing a new vehicle. However, life happens, and sometimes that’s not possible! If your score is under prime, options are still available if you're willing to pay more interest. Look for financing options that specialize in lending to people with lower scores or will allow a co-signer on your loan.
pro tip: Suppose you'd like to improve your credit before vehicle shopping. In that case, plenty of debt management services are available that would be happy to help! Our partners at GreenPath Financial Wellness offer free one-on-one counseling and financial education tools. Click the link to learn more:
wait until the end of the month to purchase
Waiting until the end of the month to purchase a new vehicle is one of the most common myths about the buying process. Many believe they’ll get a better deal around this time because the dealer will be more desperate to meet their monthly quota. While it’s true car dealerships set sales quotas, they aren’t necessarily set monthly. Dealerships have different offers and incentives for their sellers depending on the company’s sales metrics. If you need a new vehicle, don’t hold off on shopping for this reason - it likely won’t be worth the wait!
pro tip: You don’t always have to travel to the dealership to find your perfect car! Take advantage of AutoSmart shopping, where BlueOx-approved dealers are available to help you find and finance your vehicle online!
buy now or lose your deal
The truth is, there’s never a lost opportunity when purchasing a vehicle. The industry moves quickly, and new vehicles are constantly hitting the market. Don’t put pressure on yourself to meet the criteria of a great deal because you’re nervous that you’ll miss out on it.
If the negotiating process didn’t go as planned, it’s best to walk away and start fresh. A new deal, possibly a better one, is right around the corner! It’s more important to do the proper research and find the right vehicle for you - instead of taking the first deal you’re offered.
Now that you’re feeling more prepared - it’s time to car shop! Take advantage of low rates and flexible terms with a new and used Auto Loan from BlueOx Credit Union! Apply online today:
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We also offer low-cost payment and vehicle protection services, including:
- Payment Protection
- Guaranteed Asset Protection
- Mechanical Repair Coverage
- Depreciation Protection Waiver
- Auto Essentials
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