YOUR GUIDE TO: BUYING
By Steve Bell, Thursday June 19, 2008
Whether yo like it or not, the phrase: “he’s a bit of an Arthur Daley” is still used today. The brush that has tarnished the salesmans reputation is as busy today as it ever was. Having spent over 15 years in the motor trade myself, let me tell you one thing: It hasn’t changed. Yes, you may be able to sit in a modern car showroom on a nice leather sofa, watch Sky news on an expensive plasma and drink coffee from a china cup, but all salesman are driven (and pushed) to do one thing: Sell cars. Sure, they may seem friendly enough on the facade, but deep down all they’re interested in, is hitting that sales target. The way you and I are approached on the forecourt nowadays has been vastly improved over the years. Volvo were one of the first manufacturers in the UK to adopt a new selling approach to try to rid the car-game of its pushy and arrogant sales techniques. I remember working for the Lex Retail Group back in 1995, a time when the trade was slowly moving into the twentieth century. As old-school salesmen and women were use to the “keep driving ‘em down hard” approach, at Lex the days of tilting your desk so that the order book and pen would fall into the lap of an umming-and-arring customer (yes that is true), were well and truely over.
The sales-phrase ‘qualify the customer’ and ‘ask what they need in a car’ were totally alien for those who had been in the trade all their working career. Time management was drummed into us from the word GO. Under no circumstances were we allowed to be pushy in any way, shape or form to any customer. This was boot-camp for car salesmen. Sure enough a large proportion left the motor trade and set up thier own used car business and whent back to the only way they knew. But interestingly enough, this softer approach (a technique adopted from America) actually worked for a number of years. The trade generated more money than previous years and it looked very rosey indeed. Because we now have the ‘car supermarket’, the manner in which cars are sold today are exactly as they were all those years ago. Nevertheless, it has opened up more benefits for us punters. Take negotitation. We can negotitate are socks off when buying a used car as the salesman need to achieve his or her sales targets, otherwise they’re out of a job. Fortunately they’re in a position where they don’t want you to walk away from a deal. If you do, that makes the salesmans job even harder for the month ahead. Don’t feel sorry for them, though. Drive a hard bargain. Keep chipping away at that window-sticker price. Even if they say they can’t reduce the price any more, get up and indicate you’re going to go elsewhere. If they really want your business, then they’ll do all they can to keep you there. Sure, there will be times when the salesman will let you go, but keep bargain hunting.
Where do I start?
Know what car you want or need. Make a list of what you want the car to be able to provide: Has it enough seats for the family, is there room for the dog in the boot, is it cheap to run? Pick several choices of car and ring the main dealers and compare with the independant garages at what the costs of servicing will be. This is all good preperation and will save you time and aggrovation in the long run. With your shortlist, start searching through Auto Trader online. There you will have the tools to browse at over 500,000 cars without the pressures of a pushy saleman. Know your budget: You have to cap your outlay for a car. Pick a budget that’s suitable and affordable and stick to it. It’s all too tempting to over stretch – a good saleman will tempt you to buy the more expensive model. Having narrowed down what sort of car you need or want for that matter, check the running costs and insurance. Running costs can be sourced from a variety of reliable web providers such as What Car magazine and Parkers used car guide. Spend an afternoon searching as many insurance companies as you can and aquire as many quotes as possible. This will also help in your decision process – you may find that the car you thought was right may cost too much to insure. You can always save your quotes and go back to them at a later stage. It may take several months to find the right car, but don’t rush or make a hurried decision.
Showroom, garage or Car supermarket?
The only real benefits between the three are; stock availability. At the end of the day, they all do one job: Sell used cars. In some cases you might find that the small garage down the road aren’t prepared to discount the prices as much as the car supermarket in town as they rely more on larger profits. The car supermarket however sells in volume, so a small profit to shift a car is better than nothing at all. A franchised used car dealer may have more benefits to offer, such as a manufacturer backed used car warranty, good servicing facilities and loan cars. But before you decide, make time to visit all three to see which is more beneficial to you and your needs. You don’t have to be ready to buy. Just choose a random car and play on the fact that you are interested. Go through the motions: Take a test drive, ask to see what facilities they offer (service, MOT, bodyshop etc). Practice negotiating. If you do happen to go back and buy the car you actually want from your chosen used car centre, just say that you’ve changed your mind. Mind you, with the numerous customers floating in and out on a weekly basis, they may have even forgotton you coming in.
Negotiation
Yes, the moment of truth. Who has the biggest nerve? Lets start with the facts: All used cars for sale will have an estimated £1000 profit per car. A used car dealer won’t want to give all of that £1000 away, and rightly so, but they will need to have at least £300 in the deal. As already mentioned, they may not let you go as far as a £700 discount. Still, if this is the case, get as low as you can on the price and then start to hit them for those extras: Perhaps a years’ road tax. maybe a free MOT when it’s due. what about a free first service, six months warranty? It may still sound tacky, but ask for a set of rubber mats. A decent set will cost you about £40.00, anyway. Check the paintwork, too. If there’s a scratch or minor dent you’re not happy with then ask for those to be repaired by the dealer. Have a once-over. What about the tyres? If the tread seems low, ask for a new set of tyres to be fitted. You basically want to get what you can before you shake on the deal. The saleman is driving a hard bargain, so why don’t you?. Most importantly, before you sign anything make sure you’re happy. Don’t be pushed even if it sounds exciting at the time. You may end up paying for it in the long term. If you want to go away and think about it, then do so. Don’t feel concerned by the usual “that car may go before you decide” nonsense. If you are ready, then the normal procedure is to leave a small deposit. This secures your car, and deal, until the rest of the monies are paid.
Should I buy privately?
Yes of course you can. The same simple negotiating rules still apply. Also make sure you see all the relevant paperwork such as the; registration document, service book and current MOT certificate. Ask the obvious question: Why are you selling the car? If the car doesn’t look or drive right, then walk away. I’ve bought cars from what looks like dodgy addresses before, but they actually turn out to be sound and reliable investments. Always get a receipt with any money you part with. Remember: Don’t leave any money with the seller to go back at a later date to collect the car. For peice of mind, get the AA to carry out an independant mechanical check.
What if I change my mind?
If you’ve given a deposit and signed the order form, then you have legally entered a binding contract. This is a little harder to get out of than you may think. A good reputable used car dealer should refund you the money. If you’re having still having difficulty getting your deposit back, contact Trading standards or the Citizens Advice Bureau.
What if my car develops a fault?
Simple answer. Take it back and demand that it gets repaired. Finalise all repair costs before you leave the car with them. They have three attempts to resolve the issue. If it persists, then you will need to contact the Citizens Advice Bureau. To get a full refund will take plenty of time, but make your case known to Trading Standards.
Do’s and dont’s
Make a list of the things your car needs to fulfill.
Make the time and do your homework to investigate the running costs.
Go to as many used car centres (Car supermarket, local used car garage) as you can to get a feel as to what aftersales service they will provide you with.
Take a lengthy test drive. Don’t just drive round the block. Try to compact your everyday driving into an hours test drive.
Negotiate. Keep pushing for that deal.
Don’t be forced by the salesman.
Make sure you have found the right car.
Only leave a deposit when you are ready to so.
Useful links:
Citizens Advice Bureau
Trading Standards
Auto Trader
AA
