Debunking 5 Common Car-Buying Myths
It’s no secret that buying a car comes with its own set of challenges. And in today’s economy, it's common to find all sorts of tips and tricks online that you might think will help you rake up some savings in the process. Not to mention, there are tonnes of scary “truths” that might deter you from buying a vehicle that are just totally untrue.
Here at Mike’s Car Store, we try our best to keep our customers informed. In fact, as a dealership owned and operated by the #1 Watched Car Salesman on the Planet, Mike Davenport, AKA Chevy Dude, handling misinformation about buying a used car is our forte. In this blog post, we’ll explore five common car-buying myths that could cost you at your next used car dealership visit, from trade-in tricks to dealership gimmicks!
1. Myth: Credit Pulls Hurt Your Score Significantly
One of the most prevalent myths is that getting your credit checked will seriously harm your credit score. While it's true that excessive inquiries can affect approval odds, FICO changed how credit checks work in 2005 to make shopping for loans fairer. In a 30-day window, multiple checks for the same type of loan are actually considered as one inquiry, minimizing any impact on your score.
2. Myth: Buying Directly from the Manufacturer Saves You Money
Buying a car directly from manufacturers like Tesla may sound like a cost-saving move, but it often doesn't benefit consumers. Manufacturers set prices to protect their profit margins, and without the competitive push from dealerships, prices are not negotiated. Plus, dealerships provide trade-in options, financing plans, and personalized service that direct purchases may lack.
Check out our recent blog post for a deeper dive into why buying direct
from manufacturer isn’t always the best idea!
3. Myth: The End of the Month is the Best Time to Buy
While it's common advice to buy at the end of the month to take advantage of dealer quotas, this tactic may not always yield the best deals. Some manufacturers offer early month bonuses, and incentives might only vary slightly by a few hundred dollars. Instead, car shows or local promotions often present better deals.
4. Myth: Pre-Approval is the Best Strategy
Getting pre-approved can be helpful, but it isn’t always the best move. Many times, pre-approvals may not account for all variables like the trade-in or specific dealership terms, potentially complicating the buying process. It's essential to discuss underwriting guidelines with your bank before committing to a pre-approval.
5. Myth: Your Credit Score Alone Determines Approval
Having a high credit score is a plus, but it’s not the only factor banks consider. Lenders look at your credit history's depth, past loans, debt-to-income ratio, and more. A perfect credit score doesn't guarantee favorable terms or even approval, especially if you lack a history with substantial loans. Not to mention, there are plenty of ways to successfully buy a car with bad credit or even no credit!
6. Bonus Myth: All Auction Cars Are Bad
Here’s an extra myth that’s recently become a hot take in the used car buying world. The truth is, not all cars sold at auctions are problematic. Dealerships often send cars to auction simply because they don’t fit their inventory model or branding. While there are risks, many auction vehicles are in good condition. It's crucial to conduct proper checks and ensure quality before purchasing.
Shop Used Cars Near Louisville at Mike’s Car Store
Buying a car can be stressful, especially with common misconceptions that can mislead shoppers. By debunking these myths, shoppers can make more informed choices, ensuring a smoother, more efficient car-buying experience.
Another myth we’re happy to debunk? Buying a used car doesn’t have to suck! If you’re in the Georgetown, Louisville, and Floyd County areas and looking to buy a used vehicle, we know just the place. Here at Mike’s Car Store, we offer quality used cars, trucks, vans, and SUVs for all budgets. Browse our inventory today and contact us anytime for more questions.
