John Wilson, TWC’s Plant and Equipment specialist broker has listed his essential tips when buying a car – personal or commercial.
The biggest tip being around Finance (tip # 6)
1. Trade in or private sale.
Trade-ins are convenient. However ask for the ‘changeover price’.
A higher trade-in price often results in a higher new car price.
A private sale give you a better price – but it requires time.
2. Visit three dealerships and test drive at least three cars.
You can choose the route you drive and the conditions – eg peak hour, merging, suburban streets.
Ride as a passenger as part of the test drive. It can make a big difference.
“test drive over the weekend” scenarios are specifically to emotionally blackmail you into buying the car.
3. Sale price.
Don’t fall for “the deal is only good for today”. IT IS NOT.
Ask if this is the drive-away price. Often it is not and then you find all the extra costs during the contract signing process and you will feel obliged to accept them.
You are not likely to get a quote. Car yards don’t give quotes as they know you will shop around with it. They are experts at getting you to commit to the car emotionally before giving you the price.
4. Compliance Plate vs Build-date plate.
Insist on seeing the build-date plate – normally on the firewall in the engine bay.
Compliance plate is when the car was approved for sale in Australia.
Build-date plate is when it was built. When you sell the car you will have to list it as the build date.
EG: one of the major European car manufacturers is currently selling their 2016 ‘model’ – but we know it was built in 2015 and therefore is a 2015 car at the time of resale.
5. Closing the sale.
Pay deposits on credit card. If the dealer goes out of business before you take ownership you can get your bank to use the ‘chargeback’ system.
Don’t sign until completely happy. Month end pressures will see salesman push hard to close the sale. Resist.
Ensure all work on the car is completed before delivery. After purchase work is quite difficult.
Car yard financers bank on you being highly emotional.
Behavioural experts have taught them customers are highly manipulable at this final stage and will sign anything – including contracts with high monthly repayment schedules. They bank on you being emotional so they can increase their commissions.
Do not pay the car yard’s application fees. Car yards will charge you up to $700 for an application fee on finance they arrange for you. This will be built into your monthly repayments and you are charged interest on it! By having prearranged finance through John, TWC’s Plant and Equipment specialist broker you will not pay this fee.
Arrange your finance before you go to any dealer with a Car and Equipment Finance specialist. An experience and ethical broker, like John, will get you a better deal than the car yard will offer you. A better deal = smaller monthly repayments.
John can get immediate approval on most applications.
Pre-arranged finance gives you a solid bargaining tool.
7. Add Ons.
The “after sales” department is a salesman working on commissions. You usually don’t need these extras: Premium paint colours, alloy wheels and spoilers, rustproofing, window tinting, extended warranties, extra airbags.
Remember they know you are highly emotional, you just want to get in the car and you can be easily manipulated. Basically you will agree to anything they suggest.
Agree with your partner before going to the car yard what you need and both give the same answer = yes or no.
We hope this information helps you as you set out to buy your next car or piece of equipment.
Let us know if we can be of assistance to you and remember ‘TWC Finance won’t be beaten on price’.