Some Deals Are Too Good to Be True
Everyone wants to get a deal when they are buying a car. Why would you pay more than you absolutely have to?
While there are certainly many great car deals out there, it's important for consumers to be cautious about deals that seem too good to be true. Here are a few reasons why some new car deals may not be as good as they initially appear.
Things to watch out for:
- Hidden fees and charges. You may see an advertisement for a low price for a new car, but often there are additional fees and charges that can really add up.
- High-interest rates or long loan terms. In order to make a car deal seem more appealing, dealerships may offer low monthly payments. However, they achieve this by extending the loan term or increasing the interest rate. This can result in you paying much more in the long run.
- Bait and switch tactics. Unfortunately, there are some bad actors that use deceptive tactics to get people in the door. They may advertise an amazing deal on a specific car, only to claim it's no longer available once you arrive. Instead, they try to upsell you on a more expensive model or convince you to lease instead of buy.
What are your best bets on getting a discount?
- Buy used. A one- or two-year-old car has almost all the same tech and features you’ll find on a brand-new car. A new model-year doesn’t mean new features because most vehicles are refreshed every two to five years with overhauls and fully new models every five to ten years.
- Shop for vehicles that have a low turnover rate. Dealers only have so much space for inventory. They want to use that space for vehicles that are going out the door fast. They have to pay to keep a vehicle on the lot, so they are going to be willing to cut you a deal to clear out low-volume cars.
- Consider Leasing. The downside of leasing is you will continue to make monthly payments and never have any equity in the vehicle, but you’ll also have a lower payment than buying a new car every two or three years.
- Family and Friends Discounts. If you know someone who works in the automotive industry, ask them if they do have access to discounts. Dealerships do get some, but people employed by automakers and parts suppliers usually get better discounts. It never hurts to ask someone if they can help. A lot of people have access to discounts and don’t even know it. One thing you may run into is a dealership not knowing about the discounts. Metro Detroit is full of automakers’ headquarters and suppliers to the auto industry. Dealerships in those areas are very familiar with people coming in with discount codes. Outside of that area, you might need to explain what’s going on if you have a code.
It's crucial to do your research, read the fine print, and be wary of deals that seem too good to be true. Comparing prices, checking customer reviews, and seeking advice from trusted sources can help you navigate the car-buying process and find a deal that is both affordable and reliable. Let APCI Federal Credit Union steer you to savings with a Vehicle Loan that is right for you. Learn more and apply online.
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