Before you go out
1. Dealing with a licensed car dealer is much less risky than buying privately. You never know if the person you buy from is really the owner of the car or if the car is still worth the money. You may end up buying a car that will be repossessed.
2. Plan carefully. It is easy to be seduced by the good looks of a car at a car dealership and end up making a risky decision that you will regret. Know in advance what you are looking for and always keep that in mind when interacting with salespeople. To do this, you need to do some preliminary research. To do this, you need to do a little research. Manufacturer's brochures are good for looking at technical specifications and different model variations, but manufacturer's reviews are obviously biased and want you to buy their car, so they naturally give a good impression. Independent reviews are important to get an idea of what the car is like in terms of reliability, practicality, and ease of operation. Use the Internet or call the NRMA's Technical Advice Line (free for members) for more information. Some third-party reviews are also biased (e.g., Dog and Lemon Guide or the TV show Top Gear), so be sure to read more than one or two third-party reviews.
3. Gather all the information you can about the car, including reviews and the manufacturer's specifications. You should also include a calculator in your shopping pack.
4. Talk to people who own the car you are interested in, or to your neighborhood mechanic. Friends and family are more likely to be honest about what the car is like, and if you are lucky, they may even let you drive it to see how it handles. If you don't know anyone who owns the car you are interested in, you can try talking to a stranger you meet in the parking lot about owning a car. However, this method will only give you a brief review.
5. Consider accessories and options: Do you want to buy all the options you want from the dealer or not? Buying through a dealer may be convenient, but you may end up paying more than you would if you were to purchase parts after the fact from an independent retailer. You may also save on stamp duty for imported parts (although many people value the "genuine option" more).
6. Decide before you leave whether you will trade in your current car or sell it privately. Dealers have to make a living somehow, so they have to make a profit. If you sell it for thousands of dollars less than what you bought it for, did you get the driving pleasure, fuel economy, and convenience for that price? If so, then you have gotten a good deal. There are hidden problems in private sales, such as people trying to pay by check in the worst case scenario, or people running off with the car you test drove. Yes, there are legal ways to do this, but it is a hassle.
7. If you're trading in your car, keep an eye on the transfer price to see how much the upgrade will end up costing you (keep in mind that the wholesale price of a car is always much lower than you think! ).
8. Auctions (both live and online versions) can be both wonderful and torturous for both buyers and sellers. If you are buying at an auction, be sure to thoroughly check out the cars you are interested in. Also, be aware that if you get auction fever, you may end up going over your budget due to the competitive nature of not wanting to lose out to rival bidders. Never buy a car from an online auction unless you have thoroughly checked it out and can easily have it delivered to your home. If you are selling an old car at an auction, be aware that you may barely be able to reach the reserve price. Again, you need to be philosophical about how much you are willing to pay for your car. It is possible that someone will succumb to the auction fever regarding your car and you will get a brilliant price, but it may not happen.
9. Set a budget before you leave. Write that budget down on a piece of paper and stick to it. There are no exceptions or excuses allowed. Don't be fooled by a too-good-to-be-true loan agreement such as a convincing "you don't have to pay until due" and end up paying more than you budgeted (remember to set a budget for how long you can pay back the loan in a week or two).
10. Get pre-approved for a loan before you go out shopping. If you already have a good reputation with a certain finance company in the past, you may be able to negotiate better terms. You can also shop around instead of using a finance package or company that the dealership is affiliated with.
11. Take a friend with you. Ideally, a friend who can prevent impulse buying and help you identify a sound car. There are advantages and disadvantages to taking your spouse along. Your spouse also has to live on a budget and has a vested interest in making sure you don't get emotionally involved, but if the couple is together on the car sales floor, they are more likely to be bothered just to shout to the salesman that you are a serious shopper, not a dreamer. If this is the case, research the type of car you want beforehand. Fighting in front of a salesman over whether you should buy a four-wheeler or a sports car is not a good idea. Also, have a friend back you up in your negotiations with the dealer. You can also work as a team when checking out a car (e.g., two people checking to see if black smoke comes out of the exhaust pipe when you step on the gas pedal).
At the dealership
1. Be firm but fair with the dealer. Don't do Dutch auctions (tell one dealer's price to the next dealer, ask them to beat it, then do the same to the next dealer, etc.). It's okay to look around at different stores, but make a commitment to buy the car from the dealer that offers the lowest price.
2. Beware of the "sacrificial lamb". This is when a car advertised at a heavily discounted price has been sold by the time you arrive, or the dealer tries to change it for something else (this is also called "bait and switch"). Assume that the sacrificial lamb is in good condition and has been there all along, and persist in buying it. If you are sold, turn around and walk away, unless there is another car for sale at a better price.
3. Do some basic mechanical and soundness tests when buying a used car. You should also have a professional check it out (you will have to pay for this if you want it done properly), but dangerous cars can be eliminated at this stage. Check for rust and dents from every angle and in every place you can think of. Start the engine and see if there is any black smoke coming out. See if the tire grooves are deep enough. Overseas used cars may have their clocks rewound, so check that the amount of wear on the car matches the mileage. Check the carpet, seats, clutch pedal, and gear stick/knob. If they are very worn or suspect they are new and do not match the rest of the car, be suspicious. Use not only your eyes, but also your ears (creaks, backfires, squeaks), nose (musty smell indicating a leak), and sense of touch (dents, smoothness). Make sure all gauges are fully functional. This task is known as kicking the tire, but unless the tire is severely underinflated, this particular action won't tell you much. Also, don't be fooled by shiny black tires, air fresheners, or other cosmetics (conversely, don't assume that an old cigarette or dog hair smell indicates a sound used car).
4. Test drive the car thoroughly. This is the most fun part of buying a car. Find a place where you can test it at all paces, including speed, curves, and low speeds on public roads. Test the brakes. If possible, test the 4x4's off-road capabilities as well (get the dealer's permission first). Also, don't just think about handling and performance. How comfortable are the seats? For families with small children, consider the space for auxiliary chairs or child seats in the back seat, and do they fit comfortably? Is it easy to reach the seat belt when carrying a child? Is there enough space for luggage? Take some bags and luggage with you and test their capacity. If you have larger children, have them all sit in the back seat (or sit with them) during the test drive to see if there is enough room. Don't start negotiating until you are 100% decided after the test drive.
5. Don't tell the dealer that you really want the car. Even if you are at the end of the life of your current car, feel free to adopt a "take it or leave it" attitude. Remind yourself that if your current car breaks down before you buy a new one, you can still carpool or take the bus to get around. Also, don't wait until this stage to go on the market.
6. Pay a professional to do a mechanical check of your car. This is an absolute necessity.
Information on this site is in no way meant to replace the advice of a professional. Please ensure to fact check and acquire professional help regarding all information on this website.
