The used car industry is rife with myths, rumours, and other unfounded information that can turn some people off from buying cars that are used. And while some of these rumors have a basis in reality, most of them are totally false.
So, in this article, we’ll take a look at the top 5 myths about buying used cars. Forget the myths and the urban legends – read on, and learn the truth.
Myth 1. Used Car Dealers Will Always Try To Squeeze You For More Money
We’ve all heard it – clear coat surcharge! Tire protection coatings! Processing and paperwork fees! The idea that used car dealers are all trying to make an extra buck on your purchase is very pervasive indeed – and though it has a basis in reality, it’s not true for 95% of used car dealers.
Even new car dealerships have to charge processing fees and other fees related to vehicle registration, marketing fees, and vehicle preparation fees. Most used car dealerships follow this practice, and have mandatory fees that cover costs that are incurred while selling cars.
Of course, some dealers try to sneak in some hidden fees – but if you pay attention to your invoice while buying a used car, it’s quite easy to tell which fees are legitimate – and which ones you can negotiate away. If you see a charge you don’t understand, ask your dealer about it – they’ll explain it to you.
Myth 2. Paying Cash Always Gets You A Better Deal
The idea of paying for a car – straight up – in cash, seems like a great idea! If you have the money to spend on a used car and don’t have to finance it, you’ll get a great deal, right?
Well, not necessarily. Often, car dealerships are incentivized by lenders to finance a certain number of transactions – so they often prefer financing cars, because both lenders and dealers make money from the interest charged to customers.
This means that you may actually be less likely to get a discount on a car when paying cash. In addition, financing is often a much smarter move – if you have enough money to pay for a car, straight up, it’s often better to invest it or save it for emergencies, and finance your car with a low-interest loan.
Myth 3. Warranties On Used Cars Are Always Scams
If you don’t understand what a warranty actually does for you, it can feel like a scam. But most warranties offered by used car dealerships are totally legitimate – and if a manufacturer’s warranty has run out, they may be the only option to protect your investment.
However, you shouldn’t buy a warranty just because it’s offered to you. You should understand what, exactly, a warranty covers before buying it. Does it cover the whole car? The powertrain? Bodywork?
Ask your salesperson questions about the warranty – and if it seems like a good investment, and a legitimate warranty, it may well be worth the purchase price.
Myth 4: Car Guide Prices Are Definitive
It’s not called a car “law” is it? Car guides are just that – guides. Guides like Canadian Black Book can be useful to get an overall idea of the value of a car, but the specifics will always vary.
For example, a car that has a totally clean bill of health but has high mileage and some light hail damage might be priced much lower than the price at which a car guide values it, and prices will also depend on how much a used car dealer paid for the vehicle.
If your used car dealership gives you a particular price, there’s a reason they came to that price. So come in with a knowledge about the average car guide price of the cars you’re looking at, but realize that these prices are not definitive. Work with your dealer, and you’ll get a great price.
Myth 5: A Clean Vehicle History Report Means That A Used Car Is Fine
A clean vehicle history report indicates that a car hasn’t been involved in any major accidents – but this metric doesn’t include breakdowns, maintenance, or other possible mechanical issues. In addition, there’s often no way to tell how well vehicle repairs were performed in the past.
While a clean vehicle history report can be an indicator of a high-quality used vehicle, you shouldn’t just rely on the history report. Make sure that you take the car you’re interested in for a test drive, and really put it through its paces. Get a feel for how it performs, and keep an eye (and ear) out for any potential issues – strange rattling, uneven performance, peculiar smells, and so on.
By doing so, you’ll be able to ensure you get a great, high-quality used car.
Come To Ride Time – And Shop At The Best Used Car Dealership In Winnipeg
Hopefully, this guide helped you understand some of the common myths about buying used cars. And if you’re still interested in getting a great deal on a fantastic used car, come to Ride Time today, or check out our online dealership!
We sell only the very best used and pre-owned cars, and our online showroom allows you to get an inside look at each one of our offerings. We work with everyone – great credit, bad credit, or no credit – to finance vehicles, and give you a great price with a reasonable interest rate.
There’s a reason we’re the best used car dealership in Winnipeg – so come see for yourself. Check out Ride Time’s huge stock of vehicles today, and find your next dream car.