That leads me to three myths regarding car purchasing.
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 from client at time of repeat car purchase.
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: Stress free car purchase does not ever mean that you are being offered the best price. In fact, the perfect example, the car-selling meca, CarMax, offers stress free purchases thousands of times daily with their no haggle pricing structure. However, you could save a minimum of $2,000 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 of hidden ways that dealers make profit – like charging too much for interest rate.
3. Costco offers a car buying service, I can just use Costco or 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 of the areas where you can potentially overspend or under save on a car buying transaction. Car Pal’s favorite story is the client that gets the Costco price and then buys a 120,000 mile bumper to bumper warranty for a Honda Civic for $2,200 when they could have had it for $1,500 had they engaged the assistance of a knowledgeable car buyer’s agent.