April 30, 2019
We may not have a television show (yet), but we've been busting car buying myths since 1986 (for thirty-three years!). We are one of the largest and oldest car dealers in the Sarasota area, and we've heard it all, so here are some myths we're ready to bust:
1) You'll get a better deal if you pay with cash.
False. The truth is that you'll get the same price either way. Manufacturer's today structure dealer payouts and incentives in such a way that the dealers make the same profit - cash deal or financed deal. Cash speeds up the process, but the deal will probably be the same.
2) Bring your own financing to get the best rate.
False! We've seen many customers walk in with a lender in their pocket, after shopping several local banks. Our dealership can shop up to sixty lenders on your behalf to find the best rate and ultimately, the best deal for you. Our job is to get you financed!
3) Don't mention your trade-in until the very end of the negotiation.
False. OK so maybe in the past dealers might low-ball you on your trade-in to balance the deal in their favor on a new vehicle. Today, with a little research, the value of your trade-in is a few clicks away, and this same information is available to almost everyone in the industry. Dealers won't risk a deal by low-balling you because if you already know what your vehicle is worth it's a moot point.
4) Wait until the end of month/year to get the best deals.
Mostly False. Well-run sophisticated dealers like Sarasota Cadillac have become very good at forecasting vehicle sales. These dealers no longer find themselves in a last-minute sales crunch to meet the month's sales goals. This is bad on many levels, but unprepared dealers that do this take loser deals on too many vehicles and aren't as profitable. Better to know on the 5th of the month if you're off the pace and treat every day like the last day of the month. This creates a mindset of providing the most excellent customer service, every day.
Car buying services like TrueCar or AutoBuy will get you a better deal.
False. Unfortunately, these car buying companies charge dealers a commission on every vehicle sold and dealers build that fee into the sales price to maintain their profitability on the sale. You end up paying TrueCar's or AutoBuy's fees indirectly. These companies also don't service the vehicles you buy from them, so besides paying indirect costs, you still have to go to the certified dealership of the make of your car to have your vehicle serviced adequately.
