It’s always the job of a car dealer to sell you a car, but some of them get confused about who they are actually providing a service for: themselves or the car buyer. Here at Honest Car Dealer, we try to strip that all away and make sure you, the customer, are as informed as possible when you go to buy a new car. We put together a list of the five things car dealers won’t tell you when you’re searching for a new car; bookmark it and take it with you on your phone the next time you go car shopping.
Five Things You Need to Know
- The Real Bottom Line: Did you think the invoice price was the bottom line on the new car you’re looking at? The dealership can actually make a profit on vehicles sold at or below invoice thanks to “dealer holdback,” an amount the manufacturer pays the dealer for selling the car.
- Accident History: Your car dealer is about as eager as your teenager to tell you that someone crashed a car. You should always ask about accidents specifically and be wary of any vehicle without a vehicle history report.
- Low Monthly Payments Help the Dealer: It might be nice to see that low, low monthly payment at the end of financing, but that helps the dealer or the lending institution more than it helps you, letting them rake in the cash on interest. Look up a loan interest calculator online and play around with the rates a bit to see how much you could save in the long term with a higher monthly payment.
- Your Credit Score Isn’t Your Credit Score: The credit score that auto dealers use is usually a variation on the typical FICO score, weighted more heavily toward the auto industry. Your past auto loan history (or lack thereof) will affect your rate more than, say, a credit card.
- It’s Easy to Buy a Car: Movies and TV make it seem difficult to haggle over a price on a new car, but if you come in informed and talk to someone who isn’t trying to pull one over on you, you can be in and out with a good deal in no time.
Trust Your Honest Car Dealer
We want you to be able to trust your car dealer, and if you look hard, you can find a good one. Just be sure that they don’t hide any of these things from you when you go car shopping.
Check back regularly for more tips on car buying and car ownership from a real Honest Car Dealer.
September 22, 2015 by Jamie Rettig