Our most recent article was focussed on ‘tips when purchasing a used car.’ So we thought we’d also detail some useful advice to assist you when purchasing a new car.
Over the last 30 years, the internet has changed the way we as consumers search and compare products and services. In regard to the motor trade, this now means that most people spend days if not weeks researching their desired vehicle by the time they enter a dealership, equipt with a clear idea of pricing and model variances.
This is a great thing, as information in power. Knowing exactly what vehicle you want means that you are less likely to be guided into another car by a salesman looking to clear slow-moving stock.
While research is important it pays to ensure you are doing the right research. This should include finding out how long the particular vehicle you are looking for has been in production and whether it is about to be superseded by a new one. There is nothing wrong with purchasing a cheaper car as long as you are aware that the introduction of a new model may impact the resale of yours.
Ok so let’s cut to the chase, what to look out for.
1. 0% finance:
When some car dealers in Australia advertise incredibly generous finance deals, the purchaser may find themselves buying the vehicle at full retail price. There most likely won’t be any discount on a new car which is purchased using the dealer’s finance. The dealer may offset any loss brought on by his generous finance offer, so it is best to have your financing provided by a reliable third party and aim for a new car discount from the dealer.
At Leasecorp we help hundreds of clients a year secure finance for new and used vehicles at highly competitive rates prior to them stepping foot in a car yard, this enables them to know what they have to spend and what they can afford.
As a test, walk into a dealer that is offering 0% finance and ask for the total repayment figure.
2. Quotes:
Always get a quote in person and in writing, this will help you negotiate with other dealers on the same make and model of the vehicle.
3. Negotiate:
When beginning price discussion with the dealer understand that the manufacturer’s list price is often nothing more than a starting point with most new car dealers willing to negotiate if they can tell you’re serious.
Let us do it for you. We love this phase and enjoy getting great results for our clients. Our national fleet listing means we can shop your rate across many dealers to ensure you get the most value for your purchase.
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4. Trading in a vehicle:
A trade-in can seem quite convenient and straight forward but do your research on trade in prices before mentioning this to the dealer and keep in mind they will often pay less than market rates because they, in turn, have to make a profit on the vehicle when it’s sold.
We typically encourage our customers to consider a private sale as an option. If your car is in relatively good condition and has adequate service records, you could get substantially more money.
5. Don’t rule out a demonstrator vehicle:
Once a dealer has registered a new vehicle it is technically considered second hand. While this may be the case it could also only have 130km’s on the odometer and most sales people will be much more willing to negotiate on demo models.
6. Check the build plate:
Usually located on the firewall of the car, this details exactly when the car was made. This is important as a car listed as a January 2015 vehicle may have actually been built at the end of 2014, meaning it is technically a 2014 model.
7. Test Drive:
Speak to the dealer, ask if you can take the car for a longer drive which will potentially enable you to drive the vehicle on a variety of road surfaces to experience how the car truly handles.
8. Say no to optional extras:
This is a big one, far too often we have clients come in and tell us what dealers tried to charge them for these add-ons. We typically advise all our customers to never agree to extras like rustproofing, paint protection or window tinting, these are often significantly over-priced.
On this note, be careful signing up for extended warranties as these in many cases require the purchaser to agree to have the vehicle serviced at that dealership for the warranty to take effect. In saying this, having your car serviced by the manufacturer can be expensive but positively affects resale.
With these considerations in mind, let us help you get the best new car possible.
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