Car Buying Tips
Know your budget
Calculate how much money the vehicle will cost you by year. This calculation is to include the cost of the vehicle, insurance, servicing, wear & tear, repairs and the cost of fuel.
Pay for a professional vehicle inspection The cost of the inspection may be around $100 but this may save you $1000’s.
Beware of dealers posing as private sellers Don’t buy a vehicle marked private sale if you suspect the seller may be a dealer. Buying a vehicle privately does not have the same legal warranty protection as buying a vehicle from a dealer.
2 simple signs to identify a car marked private sale may be advertised by a dealer:
- Be wary if you see the same contact numbers on different advertisements
- If, when you contact the seller, about the vehicle for sale they ask “which car?”
Don’t agree to view the vehicle in a strange place ie, public car park, petrol station etc. Arrange to view the car at the sellers home in daylight
Never view a car in poor light or after rainfall. Rainfall can mask any defects to the bodywork. Also be wary if when you go to view the car it is still wet and the seller tells you they have just cleaned. Wait until the car is dry before you inspect.
If the seller hasn’t already done so obtain a complete vehicle history check from Value Check This will give you the full history of the car and piece of mind that the vehicle hasn’t been written off,stolen, had finance owing and much more.
Look for mismatched paint colour on panels. This may indicate the vehicle as been damaged in a collision.
Lift the bonnet and inspect the engine. If it looks like it has been power cleaned to mask any leaks, after you take the vehicle for a test drive inspect the engine again to see if there is any evidence of leaks
Don’t be influenced by stories such as “moving overseas”, “company car”, “baby on the way”, “lost licence DUI” etc. Remember, although these may be true, you are buying the vehicle for yourself not to do anyone else a favour.
Be prepared to haggle. You will find the seller expects you to haggle and will have factored a “haggling margin” into the price.
Don’t hand over any money until you have a receipt or buyer’s contract. A basic sellers contract that both parties sign is always good practice. To assist you can download a generic contract from Seller Agreement Form. Print out 2 copies, complete the details, get both parties to sign both copies and both retain a copy for your records.
Don’t be afraid to walk away. Buying a vehicle is a big expense. Remember there are plenty more pebbles on the beach.
Remember there is no such thing as a bargain. If the deal looks too good to be true it probably is. The seller has done his homework also and knows the value of his vehicle.
Buying Tips (from a dealer)
Generally car dealers, particularly “used car dealers”, have a bad reputation in the market place along with real estate salesmen and lawyers. Remember most dealers are honest people just running a business.
Ask friends if they can recommend any dealers. Word of mouth is always the best way to identify a reputable dealer.
Do a search on the internet for comments about the dealer you are thinking or purchasing a vehicle from.
Check all the documentation and warranty conditions carefully.
Haggle. Dealers expect haggling so will have factored a “haggle margin” into the price. Also haggle around a tank full of fuel, extra warranty etc.
Select an established dealer. If the dealer has been around for a few years they have probably built up a good reputation in the local community rather than someone who has only been around for a few months.
Don’t be afraid to walk away. If you are not 100% positive about the car or can’t come to an agreement with the dealer, walk away. You will be surprised how quickly a dealer may change his stance when he sees a prospective buyer heading for the door.