MEDIA RELEASE 16 October 2008
Top 5 car dealer tricks
Buying a new car can be a big decision and sometimes a stressful one. Going from
dealer to dealer, getting the best price, working out trade-in value and
arranging finance is not always a straightforward task and there are those who
may prey on this confusion.
PrivateFleet.com.au, Australia's biggest online car buying service, can help to
make car buying easy, offering independent advice on vehicle selection, a high
standard of service and can save you approximately 15 percent off the dealer
price.
"We do all the hard work for our customers," said Private Fleet director David
Lye. "We know all the tricks of the trade and like most industries there are
dealers out there that don't have customer's best interests at heart."
Private Fleet can help you to avoid the tricks some car dealers play on
unwitting customers, however if you plan to go out there alone, here are the top
five dealer tricks to be aware of.
1) The sacrificial lamb
This is where you see an advertisement for a car that seems to be priced very
low, well below the competition. You then call up and are invited to go in and
have a look, however when you get to the dealership, the car has strangely and
coincidently been sold! Although the dealer is quick to assure you that they
have other similar cars in stock, though not with the same low price tag.
Tip: If it's too good to be true, it probably is.
2) The expected car
When shopping around for a new model car, it's normal to be told by dealers that
the model you are after is not in stock and there will be a three month wait as
they order it from the factory.
There are some dealers who may tell you they have one on the way and it will
arrive in one month. So you pay a large deposit but a month later you get a call
from the dealer saying the car will be delayed by two months. The dealer is very
apologetic, saying it is out of their control and offers to refund your deposit.
Although this puts you back to waiting another three months with another dealer,
so you agree to wait for the car.
Tip: Unless a dealer actually has the car in stock, delivery times are likely to
be similar from dealer to dealer.
3) Robbing Peter to save Paul
This is where a dealer offers you a fantastic price on a new car only to tell
you your trade-in car value is way below what you have been offered elsewhere.
The reverse can also happen where you get a great trade-in price but pay full
retail price for your new car. They can look like great deals, but are they?
Tip: Concentrate on the changeover price, which is the new car price less the
trade-in price.
4) The unbelievably low interest rate
There are dealers who may offer incredibly low interest rate car loans,
sometimes even half the rate of a typical house loan. You may ask yourself, "How
can they offer that for an asset that depreciates so quickly?" The truth is they
can't, unless they have something to offset the loss, for instance a premium
price.
Interest rates are based on risk and cars are risky items to finance. They
depreciate rapidly, are prone to accidents and theft and in a worst case
scenario if the loan defaults, it may be difficult for lenders to recoup their
funds in the event of repossession. This is why true car loan interest rates
will always be more than those for home loans, as most houses appreciate in
value and do not usually go missing.
Tip: If you're taking out a car loan, concentrate on repayments for like terms,
not the interest rate.
5) The bargain demonstrator
This is where a dealer will offer an ex-demonstration car that has only done
about 2,000 kilometres. However, before you jump in, it pays to remember what
demonstration cars are used for, test drives. The average test drive usually
clocks up around 10 kilometres. This means that 200 people have put the car
through its paces, giving it a real workout, a hard start to the cars new life.
Also, it will probably be an 'old build plate' meaning it was actually
manufactured in the previous year, even though the dealer is selling it as a
current model. Combined with a few other probable comprises, such as colour and
added extras and suddenly the deal is not quite as great as you first thought.
Tip: Demonstration cars are used cars, compare the price against a brand new one
and make an informed decision.
Private Fleet is an Australian owned and operated national online car buying
service. Private Fleet customers are individuals and small businesses who ask
Private Fleet to provide independent advice on their vehicle selection,
competitive pricing and a high standard of service. Private Fleet then invites
multiple dealers from all over Australia to bid for the business.
Private Fleet is affiliated with over 600 dealers across Australia and buys more
cars than any other buying service in Australia. This gives Private Fleet
significant buying power and saves customers money on new car purchases.
Private Fleet can be contacted on 1300 303 181 or by visiting
www.privatefleet.com.au
Released for Private Fleet by Dennis Rutzou Public Relations (www.drpr.com.au)
For further information please call Joanna Gitsham or Nicola Rutzou on (02) 9413
4244.
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