The process of buying a new car is

a difficult one for many consumers,

and for very understandable

reasons. After all, you’re

committing yourself to years of

monthly payments. What makes

the process even more challenging

is the large amount of misleading

myths and misinformation in

circulation about buying a vehicle.

Let’s look at some of the more

common fallacies out there.

When buying small electronic devices, extended warranties tend to be useless, as these gizmos often

have a very low failure rate. Many people are aware of this, and mistakenly apply the same logic to car

warranties.

An extended warranty, preferably one backed by the manufacturer, will often pay for itself by saving

you expensive auto repair bills in later years.

This myth takes two forms:

1. Some people believe that they have a contractual obligation to have their car serviced at

the dealership where they bought it.

2. Other people believe they’ll get discounts on maintenance service from the dealership

where they purchased the car.

To put it simply: Neither belief is true.

Allegedly, nobody wants to

trudge around a car dealership

when it’s raining, and this leads

to desperation on the part of

salesmen who need to meet

their quotas, even if they have a

make a profit-cutting deal.

The problem with this theory is

that it has been widely

circulated. As a result, car

dealerships often fill up with

eager buyers on rainy days—

which defeats the purpose of

visiting during these times. Also,

you’ll get rained on.

It seems logical to avoid buying the first year of a given model. After all, the model has no track

record, so how do you know it’s not a complete lemon?

The truth is, car manufacturers put their vehicles through an enormous amount of testing prior to

sending them into the market.

A lot of businesses prefer cash upfront,

so it seems to make sense that this

would hold true for car dealerships as

well.

The truth is, dealerships generally prefer

you to arrange a financing plan with

them, which increases their profit and

qualifies them for bonuses. There’s no

incentive to cut you a cash-only deal.

It’s a very old trick: The consumer is

hammering out a deal when—

WHAMMO!—he or she mentions at the

last minute that they have a trade-in.

The theory holds that you’ll get more for

the trade-in if the salesman agrees to

terms before calculating the value of

your old vehicle.

In actuality, the trade-in value of the car

is fixed—no matter when you mention it.

The foursquare is that sheet of paper

divided into four large boxes, each with a

dollar amount associated with your deal

(e.g., down payment, monthly payment).

It’s a useful tool for visualizing the

developing deal, but it’s not really a legal

document. This means you can back

away from the deal if you decide you

don’t like what you’re seeing.

Desert Sun Auto Group is a leading automotive dealership in the state of New Mexico,

offering a wide selection of new and used Chevrolet, Buick, Chrysler, Cadillac, GMC,

Dodge, Jeep, RAM, and Toyota vehicles. The dealership serves the Greater New Mexico

and West Texas areas. Visit www.desertsunmotors.com.