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Buying a car is an important financial decision and one that you need to get right. Whether you’re looking for a luxury vehicle or just a cheap drive to get you from A to B, it’s vital that you shop around for the best possible deal.
But should you buy from a dealer, buy at auction, shop for cars online or find a private seller another way? Let’s compare all the options to help you find the best place to buy a car.
Dealership | Online | Private sale | Auction | Demonstrator vehicle | |
---|---|---|---|---|---|
Cost | More expensive | Potentially cheap – freedom to negotiate | Potentially cheap – freedom to negotiate | Cheap | Cheaper than standard new car |
Speed of purchase | Depends how much you shop around | Can be time-consuming | Can be time-consuming | Very fast | Fast |
New cars available | Yes | Yes | No | No | No |
Used cars available | Yes | Yes | Yes | Yes | Yes |
Test drives | Yes | Yes | Yes | No | Yes |
Ease of purchase | Easy | Varies – depends on the seller | Varies – depends on the seller | Easy | Easy |
New car dealership Used car dealership Online Private sale Auction Demonstrator vehicles
If you want a shiny new set of wheels with that “new car” smell, you’ll most likely start visiting local car dealerships. You can find dealerships for all major brands in cities, regional centres and towns right around Australia – it’s just a matter of visiting your top choices to start test-driving models.
The biggest advantage of buying new is that you get peace of mind. New cars are much more mechanically sound than used cars and far less likely to break down. They also have a clean and unblemished history, so you don’t need to worry about servicing records, previous body damage or any outstanding finance from the previous owner.
Unfortunately, buying a new car from a dealership also means paying a premium price. You can get a car with all the latest features, a new-car warranty and any options you desire, but you’re always going to pay more than you would for a used vehicle.
Finally, buying face-to-face means dealing with sales staff. Car salespeople may not have the best reputation for honesty or integrity, so keep an eye out for the dodgy sales tactics some dealers use to prey on unwitting customers. You will also need to deal with the pressure of sales pitches at every dealership you visit.
A used car may not have the same level of glamour and excitement as a new vehicle, but buying used does allow you to save thousands of dollars. There are also plenty of well maintained used cars that have been regularly serviced and treated with the utmost care throughout their lives, so it’s certainly possible to find excellent value for money.
The trouble is that not all used cars have led trouble-free lives. Mechanical problems, poor servicing history and questionable repairs following previous accidents are just a few of the potential problems lurking just beneath the surface. Dealing with used car salespeople, who have a well-established reputation for dodgy sales tactics and questionable ethics, is another drawback.
The first port of call for many people looking to buy a car is online. Through websites like carsales.com.au, carsguide.com.au and gumtree.com.au you can browse thousands of new and used vehicles from private sellers and car dealerships.
The biggest advantage of buying a car online is that it’s extremely convenient – you can compare a wide range of vehicles and prices without having to get off the couch and without feeling pressured to buy. Of course, you’ll still need to visit the seller to inspect the car and take a test drive, but shopping online can remove a lot of the legwork and hassle of comparing your options.
However, one of the problems with online is that the ad you see posted may not match the car for sale when you turn up to inspect it. There’s also no way of knowing whether private sellers that list their cars online are trustworthy and above board, so it’s important to get a pre-purchase inspection, check the car’s history and make sure there is no finance owing on it.
Not all private car sales take place online; you could see a car advertised in the classifieds section of your local paper, or maybe just marked on the side of the road with a “For Sale” sign on the windscreen.
Buying privately potentially allows you to score a great deal. When you find a mechanically sound car with all the features you want, you can haggle all you want with the seller and try to negotiate the best possible price.
However, you will need to watch out for several traps and pitfalls. There is no cooling-off period when you buy privately, and a clear title is not guaranteed. You could potentially be buying a stolen car and you also won’t get a warranty, so you must do your research and get an independent inspection before you buy.
Buying a car at auction is the quickest method available and can let you enjoy significant savings compared to buying from a dealer. Although auctions are generally targeted more at the trade than at private buyers, you can find a great deal if you know what you’re looking for.
You will typically get to inspect a vehicle before bidding but test drives are not available. Some cars come with a statutory warranty and others will not – the auctioneer will announce this before bidding begins – and there is no cooling-off period.
With this in mind, it’s important to do your research ahead of time and keep a cool head when bidding starts.
One final option worth considering is buying a demonstrator vehicle. Demonstrator models are usually vehicles that have been used as test-drive cars, but they can also be vehicles used by dealership employees or even used as loan cars.
Because demo vehicles are no longer new, you can enjoy substantial savings compared to the cost of a new vehicle. As they’re often used to show off the best a particular model has to offer, they commonly include a range of top-of-the-line features and extras.
However, just remember that you’re not buying a completely new vehicle, so you should make sure you’re fully aware of the car’s history before you buy.
No matter where you choose to buy a car, keep the following tips in mind to help you find the right vehicle at the right price:
If you’re willing to do your research and shop around, you’ll be able to find a reliable car with all the right features, and without breaking the bank.
Picture: Shutterstock
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