5 Auto Consumer Myths and The Realities Behind Them

Auto Dealer Myth #1 — Auto Dealers Are Evil!

You know, we in the auto sales industry are often branded as con men or under handed dealers for no other reason than being involved in auto sales. Granted there are likely numerous auto salesmen from across the years who have been less than forthright, who may have engaged in some dishonorable practices, or who may have simply been snake oil salesmen, but for the most part we are no better or worse than any other professional in any other job. Generally auto sales professionals want nothing more than to make an honest living by providing a service to consumers. And the vast majority have the good business sense to realize that a happy consumer, one who has been dealt with honestly and sold a product and service they are happy with, is the desired end and the ultimate foundation to a solid business.

So why the stigma?

Well, as I said there have been some dishonorable merchants who have cast a shadow across the entire industry. But along with this there are also a lot of claims levied against auto professionals that are completely unfounded. Since automobiles are such a large ticket item and people normally feel uncomfortable when spending large sums of money, consumers often become convinced that no matter how honest the dealer they are dealing with is, they must be sticking it to them somehow. Because of this there are numerous myths about the secret ways the auto dealers are trying to bleed every last penny from their victims.

For the next five days I will be posting a series of articles dispelling some of the more prevelant of these myths and letting the truth of the matter be heard. Over the next five days I will address the myths that:

1. Dealers set sticker prices

Busted.

Ever had anyone tell you that the sticker in the car’s window was put there by the dealer? Ever talked to anyone who was convinced that dealers actually set the MSRP at whatever they want? Ever heard anyone say a certain dealer sets the MSRP high so you think you are negotiating a better deal?

The truth is none of these people know what they are talking about. In this post I will explain what the MSRP sticker is, where it comes from, and why it is on every new car in every dealer lot.

2. Its easier to get financing on a used car

Incorrect-a-mundo.

You are in the market for a car but are unsure of your credit score. If you are going to spend the money on a car, you would really prefer to buy a new car fresh from the factory. But, a friend of your’s tells you that you have a much better chance of getting financed if you settle for a used car instead. Is he right? Or wrong?

In this post I will tell you why your friend needs to do a little research before offering his advice. Get to know the truth of the matter when it comes to financing a new car as opposed to a used one.

3. Lease rates are non-negotiable

Negatory, Miss Information.

Sometimes leasing a car may be a better option for you than buying. In this case would you feel comfortable negotiating the terms of your lease? What parts of a lease are negotiable? Can I negotiate my lease rates?

In this post I will fill you in on the what parts of your lease are and are not negotiable. Get the skinny on negotiating rates as well as other lease terms.

4. Dealer financing rates are higher than bank rates

Its time to get your Facts checked.

How often have people told you not to seek financing through your dealer? Know anyone who thinks that, for some reason, you can’t get the same financing rates through a dealer that you can get for yourself?

Would you rather have the option of one rate or the ability to find the best rate from several sources?

5. Dealers advertise car prices they don’t actually offer

Well… I never! And neither do other dealers.

We have all heard this. Such and such dealer runs an ad advertising a car for a price that he doesn’t actually offer in order to get you to the lot and then, wham, tricks you into another car. The old bait and switch they call it. is that car advertised in our paper actually available at that price?

Find out what those ads actually say and why the dealer is not scamming you. Advertising your best prices is not a scam.

So come back for the next five days, or just subscribe to the RSS feed, and get a much more in-depth explanation of these five car buyer myths and make sure you are armed with correct information before shopping for your next new or used vehicle. The truth will, indeed, set you free.

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