Q: Why Should I deal with a Car Broker rather than just going to a dealer?
A: It is the goal and actually the job of a car salesperson to make as much money for his dealership as he possibly can. And that applies to the car, finance (finance and insurance), and aftermarket sales (tint, paint, interior, rust).
It’s the role of a car broker or car buyer’s agent to buy the same car at the lowest possible price. Your broker will get prices from at least 5 dealers or more, get independent finance and insurance quotes and then only recommend the car protection you actually need rather than the products the dealer wants to sell you. Dealers, on average, make around $3800 on a car sale. An astute broker will get that margin down to around $1800, saving you about $2000 on your vehicle purchase
Q: Should I take Finance and Insurance through a car dealer?
A: Generally no. An average car dealer relies on the car buyer to be exhausted after the trauma and stress of actually buying a car. They depend on their finance manager to make an average profit of $1100 for EVERY car buyer coming into their dealership. The income per finance contract rests around $3000 per contract. In recent times, the ACCC (Australian Consumer and Competition Commission) has looked closely at the way that finance companies and their dealers sell to consumers. Recently, on a voluntary basis, finance companies have reduced the flex rate (the maximum rate allowed to be charged over the base rate for particular consumers) to 4%, down from 8%.
There is still need to be wary of some of the non-standard lenders. For those in our community who have fallen on hard times, have bad credit or are on Centrelink benefits, some lenders are still allowed to charge exorbitant interest rates, upwards of 25%.
Q: It’s a fact that dealers, forced by their manufacturers charge very high prices for genuine spare parts. Recently I needed to purchase a set of head bolts for a 2008 Alfa Romeo Sedan. Price quoted by my local dealer was $294. I picked them up from the UK for $115 including freight to Australia. I expect to receive them in the same time as the local dealer would take to get them from Melbourne.
A: It’s not the dealer’s fault on this occasion. Typically a dealer makes around 20% of genuine spare parts sales. It’s the manufacturer/Imported who is charged prices higher than dealers in overseas markets can buy at. Shop around. To determine whether you can buy the part you need, you’ll first need the part number. Get you VIN, ring the local dealer and ask for the part number. They may oblige and if they do, just search on the net through Google. You’ll be amazed. There’ll even be local suppliers who are able to provide a genuine part for you at around overseas prices. For Jeep, Chrysler, Dodge, Fiat, Alfa Romeo, Isuzu Ute and Volkswagen, visit my site www.genuinespares.com.au
Q: If you have a larger vehicle, with a lot of glass area, the chances are that you’ll want or need window tinting. At point of sale, dealers will want to charge you up to $795 to tint the windows of your car. Again, you’ll want to avoid the stress and pressure of negotiating anymore and just sign where you’re asked.
A: Window tinting can be obtained for around $400 from independent outlets. My company Car Business has arrangements with local tint shops to do just that price – $400. Don’t be overcharged. $400 is the price to pay for the average vehicle
Q: How do I pick the right car for my needs?
A: Typically, car buyers will have a general idea on what sort of car they want to buy. However, in a market like ours with nearly 60 brands and thousands of models, historical ownership doesn’t have to be maintained. Find an honest buyer’s agent and have a chat to them about your requirements. My company, Car Business, offers this service to our customers without any obligation. You can fill out the lifestyle form, by clicking and a representative of Car Business will contact you to discuss your needs. We use the R J Pound Comparative new Vehicle Price Guide to assist buyers to understand the alternatives. It may not be the one you’re thinking about right now.
Q: I need some accessories for my new car, but I’m not sure that I’m getting the best price from the dealer
A: Accessories are another area that dealers make a lot of their profit. Apart from the window tinting, paint and interior protection and rust proofing, a typical salesperson will run through a long list of accessories. Even the manufacturer has copious amounts of accessories in their new car brochure.
Don’t feel obligated to buy any accessories you want through the dealer. I suggest to a lot of my customers to phone the spare parts department of the same dealer and ask for a quote on the accessories they want. You might be surprised at a price. The other way is to search on the internet. There are lots of retailers who buy the same parts you want from overseas suppliers (even ones that supply the manufacturer directly) and will offer them at a substantially better price. All you have to do it fit them up, but generally it’s a pretty easy thing to do for the home handyman
Q: If I sell my car privately will I get a better price?
A: It is sometimes possible to achieve a higher price with a private sale however this reduces significantly if your vehicle is not presented correctly and is no longer under warranty. The private buyer today is looking to receive the same benefits they would by purchasing from a Dealer and expect huge reductions in price if they believe they are disadvantaged. Add to this the cost of preparing your vehicle to the same standards as Motor Dealers. Look at such items as Safety Certificates, Service, Tyres, Windscreen, Chips and Scratches, Detailing, and Advertising along with the need to be accessible and available at all times including weekends when prospective buyers will want to inspect your vehicle. It may not be the wise choice to have people you do not know, coming to your home.
Once the costs and time involved are assessed, most people choose to trade their present vehicle or to use a professional Car Buying Service to ensure they get a good price without the expense or hassle.
Q: Do you allow RACQ Inspections on second-hand cars?
A: Yes, we welcome the RACQ Inspection Process in our business and recognize the need for such an independent examination. Once completed we will discuss the report with you and facilitate any repairs that are deemed necessary. You can arrange for the RACQ to visit our business. We can arrange for them to inspect your choice of vehicle and have them send the report directly to you if you prefer.
Q: Why are dealers so expensive for service in comparison to other service centres?
A: Dealers service and maintain vehicles as set out by the manufacturer’s recommendations to protect your new car warranty. They will generally be willing to match other service providers as long as they are comparing “like for like”.
Your individual circumstances can be taken into account regarding changing some filters and coolants etc. They also have factory trained technicians and have the support of specialized equipment and of course the proper factory support. There are many other reasons such as resale value, and when it comes to trade in price, car retailers always look at maintained service books and especially if a dealer has serviced them.
On the other hand, if you’re carefully managing your money, we can arrange a log book service at one of our preferred providers.
Q: Do you offer a loan car or other means of transport
A: Yes we do. However, as with anything, we do require a forward booking to be able to meet your needs. In most cases, our clients in the local area only need a lift and pick up which we are only too happy to provide. There is a nominal charge of $20 on our loan cars to reduce the insurance excess from $2500 to $1000.