TIPS WHEN BUYING A CAR

I’m very proud to say that for my past 2 car purchases, I haven’t set foot in a car yard. I’ve managed to do the negotiating on line and in the case of my current vehicle, I was able to have the dealer bring the car to me even though he is 2 hours away! They even took my old car away at the same time!

According to drive.com.au there are nearly 50 brands with more than 500 models to choose from in Australia, making it one of the most comprehensive and competitive markets in the world.

Strong competition means the new car buyer gets good value but it also brings a degree of angst as market forces produce a high-pressure sales environment.

Many salespeople are under enormous pressure to perform for their bosses and a sell-at-all-costs attitude sometimes prevails at the expense of sensible business practice and good customer service.

This pressure to achieve maximum sales and maximum profit can intimidate potential customers.
Here are a few pointers that will make your buying experience the pleasure it should be.

GET CLICKING
 

A lot of the stress in buying a new car can be alleviated by doing some homework before you walk through the showroom door. You can visit the car company websites (usually the brand name followed by .com.au) and there are also useful consumer sites which have independently compiled tables that compare the safety rating, price and equipment of each model.

SHOP AROUND
 

Make a promise to yourself to visit at least three dealers representing the brand of car you are looking to buy, starting with two away from your area. By the time you reach the third dealer (and the one that's closest to you) you should know exactly what you're after.

PROOF OF AGE
 

At this time of the year there is still a lot of last year's stock about. While the car you like may have a 2007 compliance plate (that means it was taken out of bond and approved for sale in 2007) it may have been built in 2006. This means, in the dealer's eyes at least, it has already aged one year even though it may have been built in December.

ARE YOU FOR REAL?
 

Check that the car you want actually exists. Some salespeople will say they have your exact car in stock or it will be a few days or weeks away from delivery or it has to come from another dealer or a holding yard.

If the car is not in the dealer's stock and it has to be transported from across town, interstate or even overseas, write an amendment to the contract saying that the deal is only valid if the car is delivered by an agreed date.

READ FINE PRINT
 

Several years ago the Australia Consumer and Competition Commission produced guidelines for new car advertising designed to make prices more transparent, however there is still plenty of scope for misleading advertising. For example, "free rego" may give the impression of free on-road costs - in reality it is merely the RTA registration fee and does not include stamp duty, third party insurance and the dealer delivery fee.

DELIVERY ROOM
 

Most dealers quote from $1495 to $1695 for dealer delivery fees but some try to charge up to $3000. When you consider some dealers don't even fill the petrol tank for this price, you can see why some customers get upset.

The delivery fee is not the cost of getting the car to the dealer, as some dealers like to say. It actually is a cost designed to cover the incidentals of getting the car prepared for delivery to the customer, that is getting it cleaned, having a mechanic give it a once-over and completing the registration process.

TAKE A FRIEND
 

Many dealers will let you examine and test drive a car in a relaxed environment but there are some who apply pressure the moment you walk into the showroom. Hopefully your friend will be dispassionate about the car and will help bring a cool head to the situation. In the excitement and haste of getting into a new car you may choose the wrong one or pay too much. Having some sensible shoulders to lean on is handy.

PERFECT TIMING
 

Salespeople will sometimes do a near no-profit deal at the end of the month in order to meet a sales target and receive a volume bonus or even an overseas trip from the manufacturer or importer they represent.

So if you find yourself ready to buy in the last week of the month, you may find you'll get a better response from sales staff - and likely, sharper discounts.

MONEY MATTERS
 

Doing your homework can also save you money when it comes to finance and insurance. Salespeople will tend to steer you in the direction of their own in-house services because they get a commission from each deal they sign up.

Likewise with insurance - a little time checking around beforehand can reap real benefits and savings. Making a hasty decision in a dealer at 5pm on the weekend could cost you plenty. Going in prepared could save you money. Check out the FiftyUp Clubs Car Insurance offer here

THANKS BUT NO THANKS
 

As the profits of new cars gets slimmer, dealers are finding new ways to turn a dollar. One person to watch for is the so-called "after market accessory specialist", whose job it is to sell you such items as rust proofing, paint and trim protection, headlight protectors and floor mats. Manufacturers provide good factory-fitted paint and trim protection and window tinting. These items are generally not required unless you plan on driving on sand dunes and through salt water every day.

EXTENDED WARRANTY
 

Most new cars come with three years' warranty and a reasonable amount of kilometre coverage (some brands such as Hyundai and Mitsubishi now have up to five-year factory warranties).

These should not be confused with extended warranties offered by dealers, which should be treated with extreme caution. Extended warranties don't come cheap, up to $1200 to add a three-year/60,000km coverage to the end of the free, factory three-year/100,000km warranty.

So, if you are considering an extended warranty, make sure you check the fine print thoroughly before signing up.

TRADE-IN TIME
 

If you are trading a car, keep in mind you are paying for the convenience of driving to the dealer in an old banger and driving out in a new model. If the salesman gets it spruced up and sells it for $3000 more than he just paid for it, don't be annoyed. That's his job.

Take the hassle out of it and simply ask for a change-over price. "How much do I have to pay to get out of this old car and into that new one?" That way you're dealing with one price, not three.