What is a Guaranteed Buy Back Scheme from a Car Dealer ? by Monica van Riet of Mortgage Choice South Melbourne

The car market is noticing a number of manufactures now heavily pushing the guaranteed buy back of cars they sell at the end of the term.  This strategy is being adopted so that they have a better chance of writing the current finance and also securing the follow up finance. In short it is a retention strategy.

As with anything in life, there are a few things that are guaranteed. And when it comes to cars... There is no guarantee. There are a number of issues with these buy backs that will often result in the clients not getting the price they were “guaranteed”.

There a multiple conditions on the “buy back”.  Some are obvious, such as kilometres per year and who can service the car. The car can only be serviced at the dealership even after the warranty has expired. 

Less notable clauses are the wear and tear provisions, which are extremely subjective and always favour the dealer in their terms and conditions. In most cases they will further discount the agreed amount due to wear and tear.

Ultimately my mantra is always the same; keeping everything at arm’s length and buying the car for the best possible price, is always the most sensible strategy. 

If you have any questions please feel free to call me at any time, on 03 9681 8182 or 0401 677 314.

Posted in: Car loans & leasing

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