The golden rules of buying from car dealerships
What should you watch out for, according to the Consumer Action Law Centre?
- A salesperson or lender that tries to pressure you into buying an extra product you haven’t asked for.
- In some circumstances, a lender can require you to buy insurance to get a loan. But remember, you don't have to go with the insurer that the salesperson suggests.
Ways to get the best deals
- Buy ''soon to be old'' car - there are bargains to be had when car yards are looking to sell soon to be replaced models.
- Look at comparison rates - finance from the dealership might not be the best option, so compare with other lenders.
- Negotiate extras - dealerships have wiggle room on these, so have a list of extras that would sweeten the deal.
- Read extended warranty fine print - make sure that you understand what is covered, and more importantly, what is not covered.
Best time to buy
- On weekends - A busy car yard having other buyers
- End of Financial Year sale - Mid-year promotions often see cars sold at a low drive-away prices or heavily discounted finance to bump up sales.
- Last month of quarter - car salespeople have sales targets to reach. You might be the remaining sale they need to receive their bonus.
- New model release - when older stock makes way for new.
Our Top 5 insider tips about buying a car
- Cooling-off - One day cooling-off period applies unless purchasing a new car, buying at auction or taking delivery of it immediately.
- Statutory warranty:
- Most new cars have a warranty of 12 months or 20,000km, whichever happens first. Generally, new cars come with a manufacturer’s warranty that exceeds the statutory warranty.
- For used cars, the warranty depends on the on the vehicle´s age and odometer reading:
- Three months or 5000 km, whichever happens first, for cars with less than 160,000km or manufactured fewer than 10 years prior to sale.
- One month or 1000 km, whichever happens first, for cars with more than160,000 km or manufactured more than 10 years prior to sale.
- Statutory warranty repair requests must be advised in writing.
- Repairs outside of warranty – Cars requiring premature repairs through no fault of your own - check forums for reports of a similar fault and contact the manufacture to request free-of-charge repair.
- Extended warranty – May require servicing to be completed within specified intervals. Not always transferable on used cars. Read the fine print to understand what you're covered for.
- Recalls – Visit Product Safety Recalls website prior to purchasing a used car or if significant repairs to the vehicle are required.
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