6 Great Reasons to Buy from a Dealer

11 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