Purchasing a Car

[North to South]

Hi,

In day 7 of quarantine I decided it's time to start looking for a couple of cars to purchase when we leave so we don't have to rely on a hire car for too long and one thing that has struck me compared to the UK is the lack of used vehicles at dealerships.  I'm looking to purchase a Mazda SUV and Sedan and most dealerships mainly have demo or new cars, and no what I would call 1-2 year old used cars which I've typically purchased in the UK without any trouble.  I've seen a couple of demo cars that I like, but I know I could save a few dollars if I could find some that were maybe 12-18 months old, so just wondered why I can't find them, or is this just the car market in Adelaide ?

Any advice would be most welcomed.

Thanks  

[welljock]

It's the same in Perth, one of the salesmen was saying that people having been spending the money on cars this year instead of holidays, so the availability is limited. A year ago the car yards were jam packed full of used cars with the new cars in the showrooms, now the majority of the cars in the yards are new and well spaced out

Nevertheless used cars are not the same bargain as they are in the UK

[Bulya]

Used vehicles have been hot sellers, prices up and limited stocks of quality vehicles. 

[Parley]

4 hours ago, North to South said:

Hi,

In day 7 of quarantine I decided it's time to start looking for a couple of cars to purchase when we leave so we don't have to rely on a hire car for too long and one thing that has struck me compared to the UK is the lack of used vehicles at dealerships.  I'm looking to purchase a Mazda SUV and Sedan and most dealerships mainly have demo or new cars, and no what I would call 1-2 year old used cars which I've typically purchased in the UK without any trouble.  I've seen a couple of demo cars that I like, but I know I could save a few dollars if I could find some that were maybe 12-18 months old, so just wondered why I can't find them, or is this just the car market in Adelaide ?

Any advice would be most welcomed.

Thanks  

What city are you in ?

[Marisawright]

3 hours ago, welljock said:

Nevertheless used cars are not the same bargain as they are in the UK

I would agree, I've been surprised how much near-new cars cost.  I've always been told cars lose a big chunk of their value as soon as they leave the showroom, but it doesn't look like it when you see the prices.

I wonder if it's the fact that Australian companies don't run company cars any more, or is that the case in the UK now as well?

Edited January 20, 2021 by Marisawright

[DrDougster]

It is also worth looking at any salary sacrifice schemes your employer might have. They are better than in UK. Having said that, we bought a used car and put the tax avoidance money through our rental payments at around 900 a fortnight or so. 

[Marisawright]

@North to South. DrDougster makes a good point.   If you expect to drive more than 10,000 km a year, you would benefit hugely from taking a "novated lease" through your employer.  The payments are then taken from pre-tax dollars, avoiding an absolute shedload of tax.  

[Bulya]

1 hour ago, Marisawright said:

I would agree, I've been surprised how much near-new cars cost.  I've always been told cars lose a big chunk of their value as soon as they leave the showroom, but it doesn't look like it when you see the prices.

I wonder if it's the fact that Australian companies don't run company cars any more, or is that the case in the UK now as well?

Used cars in Australia increased substantially in price due to COVID.  Holidays are off so people upgraded their vehicles 

[North to South]

Thanks for the info on here so far.  I'm in Adelaide and most dealers I've seen tend to be the same with very limited stock so I guess it's find a car, then buy it and just hope that I can get a good deal if I'm buying two cars from the same dealership.

[Parley]

In Melbourne there are a number of places like Car City where all the dealers seem to flog their 2nd hand stuff.

I expect Adelaide has something similar.

As you noted New Car Dealers don't like old bombs on display in their yard as it is not a good look for new car buyers.

[Bulya]

1 hour ago, Parley said:

In Melbourne there are a number of places like Car City where all the dealers seem to flog their 2nd hand stuff.

I expect Adelaide has something similar.

As you noted New Car Dealers don't like old bombs on display in their yard as it is not a good look for new car buyers.

They’re wholesaled off 

[Wanderer Returns]

3 hours ago, North to South said:

Thanks for the info on here so far.  I'm in Adelaide and most dealers I've seen tend to be the same with very limited stock so I guess it's find a car, then buy it and just hope that I can get a good deal if I'm buying two cars from the same dealership.

If you're going to buy a second-hand car, then you're usually better of buying it privately. If you buy a used car from a dealer, they are usually just selling on a trade in which they've done zero work to - and then stuck their margin on top.

[Lavers]

Have a look at Hamilton holden on brighton Road.  Its only 2min down the road from Glenelg and they have a good selection.

We bought our car from there and so far so good.

[Bulya]

3 minutes ago, Wanderer Returns said:

If you're going to buy a second-hand car, then you're usually better of buying it privately. If you buy a used car from a dealer, they are usually just selling on a trade in which they've done zero work to - and then stuck their margin on top.

Not in the ones I know.  They will spend thousands on traded quality vehicles.  And you get warranty 

[Parley]

10 hours ago, Wanderer Returns said:

If you're going to buy a second-hand car, then you're usually better of buying it privately. If you buy a used car from a dealer, they are usually just selling on a trade in which they've done zero work to - and then stuck their margin on top.

Not true. They will prepare the car for sale. Make any repairs necessary.

The advantage for the purchaser is they get a warranty.

[Paul1Perth]

5 hours ago, Parley said:

Not true. They will prepare the car for sale. Make any repairs necessary.

The advantage for the purchaser is they get a warranty.

I recently bought a 2014 Audi Q5, 3.0 litre turbo diesel from AHG for $25,500. Then paid a grand for them to do the ceramic paint treatment and put some other sealant stuff on the inside of the car. They did a really good job and I've had several people ask if it's a new car.

I had it a week and had a warning that the coolant was low. Topped it up, not very low really, luckily Audi has good sensors. Few days later same thing. Had a good look down around the engine bay and could see a small amount of coolant under the radiator. Nothing on the ground as there's a cover under the engine. 

AHG are a big secondhand dealership and where I bought it from they take all the tradeins from the dealership garages around them. The car had been serviced at the Volkswagon dealership where AHG were based. I rang them as I'd got a warranty and they said take it straight back to the VW garage who would fix it. Turned out to be some valve that they had to order from Audi and it took them a day to fit and sort it. I did a bit of checking and it's a really expensive thing to get fixed, just awkward to get at. Made me think that was maybe why it was traded in. The dealership wouldn't have picked up a slight leak like that.

Anyway, cars been great ever since and VW just billed AHG for the repair. If there's an AHG in Adelaide I'd give them a check on-line. They seem to have plenty of stock of all makes and the guys were really helpful, specially when I had the problem, sounded like he really cared and went round to the VW garage straight away to get it sorted. Checked again that I was happy with the service when I got it back. 

Have a check on the internet.

[North to South]

Hi, I've just contacted a dealer regarding buying a car and they've said that I need to obtain a South Australian drivers licence before I can register the car.  Is this correct and if so, does anyone know how long the process takes to obtain a licence, and can you use an Airbnb address if you're staying there for a couple of months ?

All help would be appreciated.

[Marisawright]

42 minutes ago, North to South said:

Hi, I've just contacted a dealer regarding buying a car and they've said that I need to obtain a South Australian drivers licence before I can register the car.  Is this correct and if so, does anyone know how long the process takes to obtain a licence, and can you use an Airbnb address if you're staying there for a couple of months ?

You can use an Airbnb address for everything, but check whether anything will be posted to you - you may  not have access to the letterbox. 

 

[Lavers]

2 hours ago, North to South said:

Hi, I've just contacted a dealer regarding buying a car and they've said that I need to obtain a South Australian drivers licence before I can register the car.  Is this correct and if so, does anyone know how long the process takes to obtain a licence, and can you use an Airbnb address if you're staying there for a couple of months ?

All help would be appreciated.

We used our airbnb, and the owner kindly forwarded mail for us when we moved.

You just have to change address within 14days when you move.

The driving license is issued when you are at the offices.

[Wanderer Returns]

On 21/01/2021 at 07:57, Parley said:

Not true. They will prepare the car for sale. Make any repairs necessary.

The advantage for the purchaser is they get a warranty.

It depends what that warranty includes - some are not worth the paper they're written on. The one time I bought a newish car from a 'reputable dealer' (it was a Peugeot dealership in Sheffield about 25 years ago) within a month the cylinder head gasket went, and when I returned to the dealership they said that the warranty only included mechanical failure and not 'wear and tear'. This was highly debatable given that the car was only a couple of years old but I got the repair done anyway, which cost about £300 at the time, A fortnight later a milk float pulled out in front of me and the car (and the milk float!) were right-offs! I also broke my elbow and the insurance pay-out was sufficient to ensure I recouped all my costs, but I've never bought a car from a dealership since. I'm sure there are some very good ones around like the one @Paul1Perth mentioned that really look after you, but I just prefer to buy a good runner privately and pay for any repairs out of the money I saved.  

[Bulya]

1 hour ago, Wanderer Returns said:

It depends what that warranty includes - some are not worth the paper they're written on. The one time I bought a newish car from a 'reputable dealer' (it was a Peugeot dealership in Sheffield about 25 years ago) within a month the cylinder head gasket went, and when I returned to the dealership they said that the warranty only included mechanical failure and not 'wear and tear'. This was highly debatable given that the car was only a couple of years old but I got the repair done anyway, which cost about £300 at the time, A fortnight later a milk float pulled out in front of me and the car (and the milk float!) were right-offs! I also broke my elbow and the insurance pay-out was sufficient to ensure I recouped all my costs, but I've never bought a car from a dealership since. I'm sure there are some very good ones around like the one @Paul1Perth mentioned that really look after you, but I just prefer to buy a good runner privately and pay for any repairs out of the money I saved.  

You do realise we’re taking about Australia, not blighty?

[Paul1Perth]

2 hours ago, Wanderer Returns said:

It depends what that warranty includes - some are not worth the paper they're written on. The one time I bought a newish car from a 'reputable dealer' (it was a Peugeot dealership in Sheffield about 25 years ago) within a month the cylinder head gasket went, and when I returned to the dealership they said that the warranty only included mechanical failure and not 'wear and tear'. This was highly debatable given that the car was only a couple of years old but I got the repair done anyway, which cost about £300 at the time, A fortnight later a milk float pulled out in front of me and the car (and the milk float!) were right-offs! I also broke my elbow and the insurance pay-out was sufficient to ensure I recouped all my costs, but I've never bought a car from a dealership since. I'm sure there are some very good ones around like the one @Paul1Perth mentioned that really look after you, but I just prefer to buy a good runner privately and pay for any repairs out of the money I saved.  

Yep, if you know a bit about cars there are some excellent bargains around. My wife had a novated lease Ford Focus. Only used it to work and back and a bit of shopping, so very low kilometres, always serviced by the dealer. She had it about 5 years and fancied a Nissan Juke, got a good deal on an ex-demo juke and sold the ford privately. A young girl came to look at it and brought her uncle who was a mechanic. I think my wife could have got more for it but sold it for about $10,000. 

Nissan juke has been good too, she really likes it. I had a 2005 X-trail till this year and would have got another if the Audi hadn't have come up. My eldest bought the X-trail for $2000. Suit him as he's FIFO 3 weeks on 3 off.