1. Warranty
Probably the greatest benefit of purchasing from a dealership is that the vehicle will most likely be covered by either the manufacturer’s warranty, or if not, a statutory warranty.
When you buy a new vehicle the manufacturer will “guarantee” the vehicle, usually for a limited period of time, provided the vehicle is used correctly and if you abide by their terms and conditions – this is commonly referred to as a manufacturer’s warranty. Some dealers even offer a longer extended warranty period at an additional cost.
A common condition is that the service schedule should be followed, and the service should be conducted by qualified staff using appropriate quality parts and according to the manufacturer’s specification. If you find a defect in the vehicle during the warranty period, the warranty will normally give you the right to have it repaired free of charge.
Manufacturer’s warranties can vary between companies, but most major car brands today offer a 5 year/ Unlimited kilometre warranty.
Where there is no manufacturer’s warranty available, the Motor Vehicle Dealers Act requires licensed dealers to fix certain defects in used motor vehicles they have sold – this is called a statutory warranty.
The statutory warranty also applies only to motor vehicles that have a purchase price of $4,000 or more, together with limits on age and the number of kilometres travelled at the time of sale.
The following table outlines the statutory warranty provisions:
A vehicle bought from private sale is not covered by a statutory warranty.
2. Financing and filling in paperwork
Most people will only be able to finance from their personal bank or credit union if they want to buy a car privately, or they will have to go searching and applying for a suitable car loan.
On the other hand, a dealership can often shop for and find the most suitable financing option from multiple lenders very quickly, taking all the legwork out for you. They can also help fill out all the paperwork too.
If you’re wary about being ripped off with sky high interest rates, worry not, that practice has been banned by ASIC. Under strict new finance regulations, dealers cannot charge customers more than the base interest rate set by the lenders.
The dealer can also help you handle all the paperwork to do with registration and transfer and ownership. But it would be strongly advisable to check and be happy before signing anything.
3. Trade-in
A trade in refers to the situation where you offer a vehicle (eg. your old car) to the dealership in exchange for credit toward the price of the new one that you’re purchasing from them.
The value of a trade-in varies depending on factors such as the demand for that particular make and model of your car, the condition of the car, and your negotiation skills.
Trading in with a dealer is generally a quicker and more convenient option, as you would avoid the hassle of preparing your vehicle, advertising and meeting with potential buyers, etc. Some dealers will just deduct the cost of any repairs required from the price they offer for your trade in vehicle.
4. Fixed price or capped price servicing
Capped price servicing is a broad industry term referring to a type of servicing program offered by most manufacturers, in which the maximum cost of each scheduled service is revealed ahead of time, instead of when you’re handed a bill.
Your new car will arrive with a servicing schedule (the maximum amount of time recommended between servicing) which is a number of months or a kilometre reading, whichever comes first.
As an example, for all new cars sold every Peugeot dealer offers a Capped Price Servicing plan that covers the first five (5) scheduled services or 75,000km (whichever comes first) of the vehicle’s life. The recommended interval in between services for Peugeots is every 12 months or 15,000km.
Some manufacturers will even allow you to prepay your servicing costs at the time of purchase, so you can bundle them into your finance deal.
No hidden costs and no unexpected surprises. A fully transparent Capped Price Servicing Program will help you determine the servicing costs of your new vehicle, putting an end to that service centre bill shock once and for all.
5. Free Roadside Assistance
Okay, maybe not really a great reason – but who doesn’t like free stuff? Many premium car brands today will offer a free roadside assistance cover with every new car purchase, often for the same duration as the manufacturer’s warranty period. This means you can potentially save money on the third party roadside assistance and have the free piece of mind for the first few years of your new car’s life.