So I’m supposed to be doing the “complaint free challenge” right now but this post is clearly a long form rant… Full of complaining.
I work at a desk all day and normally have the radio on as I work from home. I hear about a dozen car dealership commercials per hour. So I have heard them all. As someone focused on saving money and “RATIONAL” spending, these car commercials drive me absolutely crazy!
Here are some of the lines I’ve hear this week:
“Are you making “new car” payments on a used vehicle?!?!? Stop!!”
So I assume, they are saying: Are you still paying the monthly payment they (car dealership) originally signed you up for 4, 5 or even 6 years ago? They are essentially trying to convince you that making that payment, which they told you was a great deal when you bought the vehicle, is a waste. They want you to come in and trade your vehicle in so you can continue these “new car” payment for 7 additional years. Or indefinitely…
Maybe they should start selling vehicles with higher monthly payments at the beginning of the term to truly reflect the greater lost value when the vehicle is new. This would help people avoid making “new car” payments on a used vehicle. But this would obviously make it more difficult to sign up people to long term financing deals that they probably shouldn’t. This would be just too rational…
“This is our best sale of the year!!!”
Really? Really? Really! This is your best deal of the year? What about last week when you had the “Black Friday Sale” (even thought we live in Canada and don’t celebrate U.S. THANKSGIVING!). Or the week before that when you had the “month end sale” or when you had the “employee pricing sale”? Or before that, when you had the “come by a new car because everyone else is doing it sale”? Sorry I made that last one up.
“We can get you in a new vehicle and reduce your monthly payments!!!”
Have you ever heard the expression, “there’s no such thing as a free lunch”? Well this also applies to car dealerships. If you somehow get a new car for the same monthly payment or lower monthly payment and you still owe money on your current vehicle, you are likely still adding a significant amount of debt to your life. You are just paying down that debt over a longer period of time. I recommend that all new car purchases should be discussed in total values (NEVER in monthly or biweekly payments!). This way you know how much more debt you are taking on.
So it’s safe to assume, that I don’t really like car dealerships. Good thing, I don’t ever plan on buying a new vehicle ever again. You’re almost always better off buying a slightly used vehicle since a new vehicle loses so much value the moment you take it home.
If you are going to buy a new vehicle, please don’t assume or think that you are getting a “good deal”. Everyone I have ever known that got a new car, said they got a “great deal”. The salesmen want to make you think that you are getting a good deal. Ever wonder how car dealerships have enough money for all their new showrooms, fancy coffee stations and BILLION radio commercials? They make a lot of money… And they don’t make a lot of money by giving everyone “great deals”…
Lastly, if purchasing a new vehicle, don’t be automatically lured into 0% or 0.1% financing options. Again, there is no such thing as a free loan. Sometimes the financing arrangements make sense, but be aware that someone is paying for that loan and it is likely you in the form of a slightly higher price for the vehicle. Feel free to ask, what would be my price if I pay in cash?
What crazy car dealership line have you heard lately? Have you gotten a “great deal” on a new car lately? Actually what I’d love to hear is a story of someone who left a car dealership and thought they got a “bad deal”. Please share your thoughts or comments.