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Tips and benefits of buying a used car from a dealership

Buying a used car directly from a dealer who is solely representing a particular car brand is the safest way to buy a used car.

This is because there is a specific car brand at stake in terms of reputation. So, by implication, the further removed we go from the direct car brand, the less connection and accountability there is to stand behind the quality of the car brand we're purchasing.

Here are some tips for buying a used car from a car dealership:

1. Bring a friend

The perfect friend for this situation is one who will stop us from buying on impulse and who knows how to spot a sound vehicle. Bringing someone along can also prevent the salesperson from intimidating us into purchasing something we ultimately don't want.

2. Come with a budget in mind

Car salespeople are very skilled and convincing at what they do so it is vital, no matter how convincing the salesperson is, to only buy what we can afford.

3. Negotiate

Being firm but fair in the negotiation process with the dealer is a must. Presume that there is room to negotiate and shop around for the best deal rather than respond to the first price.

4. Trade in your old car

If we already have an existing car that we are wanting to get rid of, trading it in could wipe a reasonable portion from our final payment. It also solves the hassle of selling it which may be even more desirable than spending time getting the best price for our old vehicle.

5. Remember that cooling off periods apply

Cooling off periods mean that if we change our minds once we have signed the purchase agreement we can notify the dealer in writing. Cooling off periods can vary depending on what state we are in, but for Melbourne (and all of Victoria), the cooling off period is three days. In this instance, the dealer can keep some of the deposit ($100 or 1% of the purchase price - whichever is greater).

6. Don't presume it is more expensive or painful to buy from a dealership

Dealerships often want to turn their cars over fairly quickly so don't presume that they will be more expensive than a private seller. In fact, professional salespeople might have even more incentive to make the sale and bring the price down than a private individual who wants to make the most he or she can from one particular sale. Other benefits of purchasing through a dealership that can make the process less painful are:

  • Dealers must guarantee there is no money owing on the car;
  • Dealers usually have to display a form on the car's dashboard that provides important but basic information such as the car's manufacturing year, odometer reading and warranty details; and
  • In most Australian states, car dealers must provide a statutory warranty. In Victoria, for instance, if we buy a car from a dealer that is less than 10 years old and has travelled less than 160,000 km the car should carry a three month or 5000 km statutory warranty (whichever comes first).

Now that we are armed with these tips and understand the benefits of buying from a dealership we can have a sound shopping experience! Happy car shopping!

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