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6 Great Reasons to Buy from a Dealer

4 years ago

Many people assume they will save a fortune by buying privately but this isn't necessarily the case.  Money aside, buying from dealers gives much greater protection should things go wrong.

1. Legal protection

 

Buying a car from a dealer gives you more protection over buying privately.  Traders have to comply with both the Consumer Guarantees Act, the Fair Trading Act and the Sale of Goods Act.

The Fair Trading Act (1986) prohibits what is called "misleading or deceptive conduct, false representations and unfair practices".

Under the Sale of Goods Act (1908) the vehicle sold must be in a fit state to be sold.   

The Act gives you the right to seek a refund or damages if the seller, unknown to you, did not have the right to sell the goods, owed money for the goods or used them as security.

2. Better information

 

When you buy a vehicle from a licensed dealer, they must give correct information about:

  • price
  • condition of the vehicle
  • number of owners
  • odometer reading  

3. Quality guaranteed

 

The Consumer Guarantees Act (1993) states that vehicles sold by dealers must be:

  • of acceptable quality
  • fit for any particular purpose made known to the seller
  • fit for their usual purpose
  • free of small faults
  • safe
  • match their description
  • a reasonable price considering their age and condition
  • able to take reasonable wear and tear, given their age, condition and price

The key difference between the two acts is that, in general, the Fair Trading Act covers claims about products and services prior to sale and the Consumer Guarantees Act covers the quality of those products and services after sale.

4. Finance free

 

A dealer will also guarantee consumers "good title" to a car . This means they can legally sell the car and you will not be liable for any debts hanging over it (unless those debts were specifically pointed out to you in writing). This protection does not apply if you buy privately.

5. They’re accountable

 

Should a dealer breach one of these acts and won’t make amends you can lodge a complaint with the Motor Vehicle Disputes Tribunal (MVDT).  The MVDT is run by the Department of Courts. The MVDT can hear claims up to $100,000 (or more if both the parties agree).

The MVDT can order remedies available under the Consumer Guarantees Act, Fair Trading Act, or the Sale of Goods Act.

6. Their prices are competitive

 

We compared dealer and private listings for eight of NZ’s most popular vehicles.  All have less than 5,000 difference in their odometer readings.

Generally dealers were more competitive on popular vehicles like the Suzuki Swift and Toyota Corolla.

Overall dealers were 6% more expensive.  So, if you are looking to buy a car privately for $10,000 there’s a good chance you will be able to get the same vehicle from a dealer for an additional $600.  Not much more for peace of mind is it?

Here’s our findings:

2005 Suzuki Swift

2005 Suzuki Swift

This vehicle could be bought from a dealer for the same price as privately.

 

2009 Toyota Corolla

2009 Toyota Corolla

This vehicle could be bought from a dealer for $500 more.

 

2009 Hyundai Santa Fe 2.2 Diesel

2009 Hyundai Santa Fe

This vehicle could be bought from a dealer for $500 more.

2007 Holden Captiva, Petrol

Holden Captiva

This vehicle could be bought from a dealer for $2,500 less.

2009 Subaru Legacy Wagon, Petrol

2009 Suburu Legacy Wagon, Petrol

This vehicle could be bought from a dealer for $1,100 more

2009 Holden Commodore SV6

2009 Holden Commodore SV6

This vehicle could be bought from a dealer for $1,000 more

2009 Hilux Diesel

2009 Hilux Diesel

This vehicle could be bought from a dealer for $7,000 more


2009 Falcon XR6

2009 Falcon XR6

This vehicle could be bought from a dealer for $1,100 more

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