Looking to buy a new car? The process of buying a car should be simple right? When it comes to buying a car, there are a few options you need to be aware of including private sale, car dealer ships, brokers and auctions.
In this article, we share some of the basics on each of these options so you can make an informed decision on where to buy your car.
LOne of the most popular ways to buy a car in Australia, privates sales are unregulated and are a sale that takes place between a buyer and seller without the involvement of any third party. There are no cooling off periods, buying privately is not guaranteed by any warranty, and there is no protection for buyers if the car turns out to be stolen.
Private sale buyers should ensure they receive a valid safety certificate before buying the car, they conduct a PPSR search and that they ensure all details match the vehicle. Buyers should also ensure they arrange a comprehensive 40-point safety check from an independent mechanic as well.
This form of buying a new car is a little more expensive however you are covered by a whole lot more so it can be worth the extra money.
Car dealers cover a range of things including a cooling off period, statutory warranty and a clear title. This means your licenced dealer will protect you and ensure your car is safe to drive and has a clear title.
Car dealers will offer a contract that you will need to sign. You will still need to ensure you have info on the cooling off period, info on deposit, details for the contract, confirmation of any trade in, clear info on the statutory warranty, guarantee of title, current safety certificate and any other paperwork to support the sale. The primary purpose of going through a dealer is to give yourself coverage by the law should any issue occur with the vehicle.
When it comes to new and used cars, brokers work to get the best possible price for your desired vehicle without you needing to physically visit a dealership and speak with salesmen. The broker works on a commission that is built into the price of the car and sourced used and new cars from dealers at a discounted rate.
The broker does the running around to find the desired car you’re looking for and is licenced to operate under the Property Agents and Motor Dealers Act. They do all the necessary checks and ensure everything is above board for when you decided to purchase the car.
The final way to buy a car is via an auction. Often car auctions sell government vehicles that have reached a certain limit for km or company cars that have been used for only a limited amount of time.
Car auctions can be cheaper than going to a dealer; however, there are some risks that you should be aware of. There is no warranty, no cooling off period, no opportunity for a test drive, inspections are limited, and there is no real assistance should you have any issues down the track. The car auction is for a seasoned professional and individuals who know their cars.
Whichever way you choose to go, it’s good to know there are plenty of options when buying a car. The key is to do your research, set your budget and get pre-approval for your finance before kicking off your vehicle purchase.
By being organised and understanding all the options when buying your car, you will be able to make an informed decision and get the best value for your investment.