One of Car Pal’s loyal clients posted a shout-out for Car Pal and Lindsay Graham on her Facebook page last week. One of her friends wrote a note that said: “I prefer Farr Auto Sales in Watertown, NY; now that’s stress free!”
That leads me to three myths regarding car purchases.
Myth #1: If I buy a car from the same place I bought last time, I will get an even better deal.
Truth: It has been documented over and over that repeat and referral clients pay MORE for their car purchase when returning to a favorite car dealership or salesperson because now trust has been established. And trust established with a car dealership = more money paid by the client when they make a repeat car purchase.
Myth #2: If a car dealership provides a stress-free purchase experience, they are also offering me a great price on the vehicle I plan to purchase.
Truth: A stress-free car purchase does not ever mean that you are being offered the best price. In fact, here is the perfect example—the car-selling mecca CarMax offers stress-free purchases thousands of times daily with their no-haggle pricing structure. However, you could save a minimum of $2000 on the same exact vehicles by using a car buying service, and still have a stress-free purchase. You also won’t fall victim to the myriad hidden ways that dealers make profit, such as charging too high an interest rate.
Myth #3: Costco offers a car buying service. I can just use Costco, USAA, or my credit union for saving money and stress.
Truth: Though there are a lot of car buying services out there, only a personal car buying service, also known as a car buyer’s agent, can cover all the areas where you can potentially overspend or undersave on a car buying transaction. Car Pal’s favorite story involves a client who gets the Costco price and then pays $2200 for a 120,000 mile bumper-to-bumper warranty on a Honda Civic when they could have paid $1500 with the assistance of a knowledgeable car buyer’s agent.