4 Common Myths in the Car Business

Michelle — Tue, 01 Sep 2009 21:09:28 +0000

I have 3 days to return the car.
It is a common myth among consumers that with every new and used vehicle purchase they have 3 days to change their mind and take the vehicle back, this is known as the three day right to rescission. This is partially true but considered a myth because the right to rescission is only applicable to new vehicle purchases that are delivered from a dealers licensed facility.

I haven’t paid the dealer a check, so I don’t have to buy the car.
This is false. You plan on obtaining financing at your credit union, but you don’t have the check in hand yet. The dealer will ask you to sign their contract so they can let you leave in the car until you bring a check back from your credit union. You may change your mind about the car, but once you sign a retail installment contract with a dealer, the dealer has obligated you to purchase the car and can decide to “cash that contract”. At that time there is nothing you can do. Your signed contract is legally binding.

Certified used cars are the best.
Another myth is that you have to purchase a certified car in order to get a good used car. This is 100% inaccurate. Manufacturers use certification as a tool to make the dealer additional money. It forces the consumer to purchase a vehicle from a franchised dealer. These dealers have overhead to pay and they pass these costs along to the customer. They also have multiple profit centers such as service departments and parts departments they will pressure you into using. Don’t be fooled by the word “certified”. Let a MAC representative educate you on the full pre-owned market.

I’ll get a better deal at the dealer if I wait until the end of the month.
Most people think that if they wait until the end of the month dealers are willing to drop prices to meet sales quotas. This is 100% inaccurate as dealers pay the same amount for cars at any point in the month as will you.

Learn more about the car business with a free consultation with a MAC representative nearest you.

Does it have a CLEAN Title?

Dan — Tue, 01 Sep 2009 21:06:16 +0000

Salvage titles are assigned to cars that are viewed as a total loss by insurance companies, and are also known as branded titles. This doesn’t mean the car can’t be driven, but vehicles branded with salvage titles have lower market values and are difficult to sell.

Title washing clears away a vehicles branding. Once the branding is eliminated, the car’s value goes up and it’s a lot easier to sell. You can see why so many car owners might be motivated to “wash” their titles. Titles are washed by transferring a salvaged vehicle to a state that doesn’t recognize the brand. When the state issues a new title, it may no longer show that it had been salvaged. If the salvage brand still exists, the seller will move it from state to state until the branding is gone.

Consumers can do an AutoCheck which tracks a vehicle’s history even if it’s moved to another state. Once a vehicle has been branded and that information is reported to AutoCheck, it remains on the record no matter how many states the car is moved through. The title may no longer indicate severe damage, but a vehicle history report will. “Washing” a title doesn’t wash away computer records. Every car at MAC comes with AutoCheck.

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4 Common Myths in the Car Business

Does it have a CLEAN Title?