November 21, 2013
As promised, Nathan Smith is back with us in this blog to continue telling us what to look out for when it comes to car finance.
Extended warranties by car manufacturers are often not as clear cut as the seem. Many have limited cover stated in the fine print and others are used to lock you into having your car serviced at the dealership for the rest of your love affair with your car - a bit like going on a first date with a gift from Tiffany & Co.
Nathan's tip? "It seems so obvious but it's amazing how many people forget to read the fine print and be thorough."
After Market Profits
Anti- rust and paint protection products, protection for leather and cloth interiors and window tints are all popular ways for dealers to make huge profits on a car sale. So flexible are these that two people on the same day could pay hugely different prices for the same after sales package, depending on vulnerability levels and the skill of the sale's person. As Nathan says, "The truth is that with the exception of window tinting, and many people don't consider this vital, none of the other add ons are necessary." The finish of most cars available in Australia these days is far supperior to that of vehicles in days gone by. Paint protection and anti rust products have already been added.
"It's much better to decide what you want then source quotes from local trades people to see if it is cheaper to have these things done after drive away."
According to Nathan the rule of thumb for trade ins is this: "Always ask for the price with and without." Nathan agrees it's easy to trade in when buying a car because it's just so convenient but he warns you to look out if you are being offered more for your old car than your research has told you to expect. "For sure you'll be losing that discount off the new one."
Guaranteed Buy Backs
The tip from Nathan is to never pay more because there is a guaranteed buy back. These often come with multiple conditions around issues such as servicing and mileage. It's not usual advice for the festive season but Nathan says, "Beware the clauses - they always favour the dealer."