When you’re shopping for a new car, you may encounter a few sales tactics that seem designed to rush you into an upgrade. One of the most common methods dealers use is leveraging the concept of depreciation. While it’s essential to understand how depreciation works, some dealers may not be completely honest about it. Here are some common depreciation lies that you should be aware of before making your next purchase.

1. “Your car is losing value faster than you think!”

Dealers often exaggerate the speed at which your car depreciates to convince you to upgrade. In reality, most cars depreciate at a predictable rate, with the steepest drop occurring in the first few years. If you hold onto your vehicle longer, you can mitigate these losses significantly.

Understanding the market value of your car can provide you with leverage. Research your vehicle’s depreciation curve to ensure you’re not being rushed into a sale based on inflated claims.

2. “Newer models have much better resale value!”

While it’s true that some new models retain value better than others, this isn’t universally applicable. Many factors, including brand reputation, demand, and market trends, influence resale value. A dealer might try to convince you that a new model will be a better investment without providing the full picture.

Before upgrading, compare the resale values of your current model against potential new purchases. This will give you a clearer idea of potential depreciation rates and help you make a more informed decision.

3. “Trade-in values are at an all-time high!”

Dealers may tout high trade-in values as a way to entice you into upgrading. However, these values can be misleading. The trade-in offers they provide often reflect inflated dealer profits rather than actual market value. This tactic can make you feel like you’re getting a great deal when, in reality, you’re not.

Always do your homework and get multiple quotes on your trade-in. Online valuation tools can help you gauge the fair market price, ensuring that you’re not taken advantage of during negotiations.

4. “You’ll save more on maintenance with a new car!”

While new cars often come with warranties and lower maintenance costs initially, this claim overlooks the fact that many older models are incredibly reliable. Routine maintenance can keep your current vehicle running well beyond its expected lifespan, saving you money in the long run.

Consider the maintenance history of your current car and weigh it against the potential costs of a new one. Sometimes, sticking with your reliable vehicle is the smarter financial choice.

5. “Upgrading now prevents future losses!”

Dealers often frame the urgency of upgrading as a way to avoid future depreciation losses, but this logic can be flawed. If you continually upgrade to avoid depreciation, you may end up spending more on car payments than if you simply held onto your current vehicle.

Take a moment to evaluate your financial situation. Determine if the costs of a new car truly outweigh the benefits of keeping your existing one, especially if it’s in good condition and meets your needs.

6. “Loyalty discounts are only available for new purchases!”

Another tactic is to suggest that loyalty discounts or incentives are only applicable to new purchases while ignoring possible savings on your existing vehicle. Many manufacturers offer loyalty programs that can apply to your current car as well, making it less necessary to rush into a new purchase.

Before jumping at the chance to upgrade, ask about all available discounts and incentives. You might find that sticking with your current vehicle can also lead to significant savings.

Being aware of these common depreciation lies can empower you in your next car buying experience. Knowledge is your best asset when navigating the sales tactics used by dealers, allowing you to make a decision that’s right for your wallet and your driving needs.