Best Car Dealerships

Based on 29,645 reviews
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Motor Scout

Motor Scout 🏆 2026

5.0 

Let Motor Scout take the haggle and hassle out of buying a new car. 100% free service!

Motor Scout

Motor Scout 🏆 2026

5.0  Summary
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Phil K.
 

Simple, up front. Can’t believe I’ve not bought a car this way before.

John Hughes Car Sales

John Hughes Car Sales 🏆 2026

4.8 
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Bob J. WA 21 posts
 

Purchased 2015 Isuzu MUX approx 4/5 months ago $27,000. found out soon after purchase center console a cheap aftermkt unit had been fitted no… Read more

warning alarms / reverse camera been cut off and wiring cut off in various places in car also no steering connections to radio or cruise control & directional air cond control jammed solid just cost Me $600 to have this fixed Auto electrical company reckon all this should have been found on pre delivery prior to sales Not Happy John Bob Joyce

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Eddie H.
 

Recommendation : When making a booking, ask the client to confirm phone number, name etc as well as location of the service. No text recieved about… Read more

my booking. Thought the booking was for Southport - turns out it was at Robina. No signage at Robina for Holden - so hard to find. Wondering why they were calling me Ralph, turns out if they had done their checks at the time of the booking, they would have identified that the car had been sold a year ago and I was the new owner. Payment time comes and told a text has been sent to me - no text - all communication went to the previous owner - no Eftos machine & have to pay through the phone - I don't do phone banking or payments through the phone. Car not washed, alreay running late & was told 5 minutes to give it wash - by this time I was over the whole day & said no to the wash. Get in the car and the reverse camera did not appear to work - technician came out and finally identified that the dimmer had been truned down. Will I be back there - No - will I recommend them - No - am I satisfied with what was done - No

Suttons

Suttons

4.5 
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Kenny 4 posts
 

Had a very bad engine oil leaking issue with my Nissan Navara following a major service at Suttons Chullora Nissan. It got so bad that the engine oil… Read more

started pouring down when the engine was running as evident in the pictures. Had to arrange for the ute to be towed to Chullora at my own costs (as they refused to provide the towing). It turned out to be a service/installation fault with the rubber O-ring of the oil filter. No apologies! No single words from their service manager even though I've requested the escalation twice (over the phone as well as at their service centre in person)! With the concerns the issue may have caused damages to the engine, I was assured no damages as the engine would have stopped if it run out of the oil. lol. The engine oil had leaked like a spray vehicle.

My Navara was purchased from the same dealership, and have been serviced by them since Day 1. I've lost 2 days of trading due to the ute for business use, towing fees, and potential damages the issue may have caused. It's really disappointed they don't want to take any responsibilities, which even little children are taught to have.

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David R. QLD
 

Highly recommend Andrew at MVC he sourced cars for us and organised a trade in aswell he got great value on all cars we are extremely happy with the service.

OzCar

OzCar

4.2 
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keejay W. NSW
 

I am extremely disappointed with my experience at this dealership. I felt pressured into applying for finance and signing paperwork for a 2016… Read more

Mitsubishi ASX that I did not want to purchase.

My credit file was checked, and I was told that the finance was only at the pre-approval stage. When I made it clear that I did not want to proceed and requested to cancel the transaction, I was told that I could not cancel because I had already signed the contract.

To make matters worse, the manager informed me that I would have to pay $10,000 to cancel the agreement.

I believe the entire process lacked transparency, and I did not feel that my concerns or decision not to proceed were properly respected. Customers should be given clear information about what they are signing and the financial consequences before committing to a purchase.

Oz car lansvale

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Customer oct26
 

Fixed price fine, but sales not confident in vehicle otherwise negotiation on warranty wouldn't have failed. Not so good admin process on pickup.

Carma

Carma

4.7 
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mishpick NSW 6 posts
 

I sold my car to Carma and was so impressed how efficient the process was. It's a well organised organisation with the friendliest staff! I was a… Read more

little sceptical to start with but true to their word I got a fast, efficient and fair deal (well above trade in) without the stress of trying to manage a private sale. It was an easy process with such friendly professional staff. The money transfer was instant. I even had my car evaluated, agreed on the sale, they paid me a deposit and I was able to use my car for a few more days while I finalised my new car arrangements. Highly recommend!

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Richard W NSW
 

I was contacted by Seamus Hilton from OnlineAuto via Auto Expert. Seamus is very professional and knowledgeable person and makes you feel at ease. … Read more

Seamus contacted me in the morning and had located the new vehicle I specified by the afternoon with a dealership close to where I live. He answered all my queries, I then felt comfortable continuing with the purchase. Seamus saved me a considerable amount of money compared to negotiating through a dealer myself. I would recommend Seamus and OnlineAuto to anyone who needs a new car.

Thanks again Seamus. You are a great bloke. Richard Worrad

Niks T.
   Fair Incentive

Amazing staff, always helping when needed and wasn’t sure what meant what

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Gavin NSW 7 posts
 

Avoid this product. It completely failed to work, and the company’s refund process is designed to make returns too expensive to bother with. After… Read more

multiple emails, they finally told me I’d have to pay almost the full purchase price again just to ship it back. I settled for a small partial refund and lost $75 AUD in the process. Terrible experience.

Carbarn

Carbarn

5.0 
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jazmin.lloyd1
 

Great blokes, great car and a great price! I got a pre loved Toyota Hiace work van. It’s in very good condition with low Km’s and drives beautifully. I can recommend this dealership with confidence. Martin

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Jase E. 4 posts
 

5 Stars – Highly Recommended! Zac and the team were absolutely fantastic to deal with. I test drove a car and instantly fell in love with it. I put… Read more

down a deposit, but unfortunately ran into some issues with finalising my finance. Even though I was past the 3-day cooling-off period, Zac and his team refunded my deposit in full—no hassle, no pressure. That level of honesty and integrity is rare to find. Although I didn’t go through with the purchase in the end, the entire experience was smooth, respectful, and professional from start to finish. The staff were a genuine pleasure to deal with.

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Mengting
   Fair Incentive

A very good user experience; we are very satisfied. Good

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Sarah B. WA
 

Extremely disappointing experience from start to finish. I paid $4,228.52 for work on my vehicle, including $1,806.74 in labour, despite my car… Read more

being with the dealership for little more than 24 hours. Since then, I have spoken to a number of people, including people within the automotive industry, and the feedback I have received about the amount I was charged has left me feeling extremely disappointed and questioning whether I received fair value for the work carried out.

Unfortunately, the cost wasn't even the worst part of my experience. After collecting my car, I discovered that approximately $15–20 worth of $1 and $2 coins had disappeared from inside the vehicle. Other coins were still there. One of the missing coins was a commemorative red poppy $2 coin that I had deliberately kept as a collectible and never intended to spend.

I reported this almost immediately. I was told management would be informed, CCTV would be checked and somebody would get back to me. Nobody did.

I had to call THREE separate times trying to get an answer, and it took more than three weeks before I finally received a meaningful response. I was eventually told that CCTV had been checked and even the vacuum cleaners had been searched, but they could not establish what had happened to my property.

After further correspondence, they did eventually source a replacement red poppy coin and agreed to refund $20 for the remaining missing coins. I appreciate that they eventually replaced what was missing, but it took an extraordinary amount of chasing to get to that point. What disappoints me most is that there appeared to be very little recognition of the stress, inconvenience or seriousness of having personal property disappear while my vehicle was in their care. Despite the repeated chasing, lengthy delay and the overall experience, I received no goodwill gesture or compensation beyond replacing/refunding the property that had gone missing. There was also a red trim piece from one of the lights left loose on my back seat when the vehicle was returned to me, which only added to my concerns about the level of care taken with my car. As a young woman relying on the advice and expertise of a dealership, I came away from this entire experience feeling incredibly let down and, frankly, taken advantage of. From the amount I was charged, to property disappearing from my vehicle, to having to repeatedly chase for weeks just to get a response, this is not the level of service I expected after spending more than $4,200. Although the missing items have now finally been replaced/reimbursed, that does not undo the way the situation was handled or restore the confidence I have lost in the dealership.

I certainly would not choose to return after this experience.

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Frank WA 2 posts
 

KS Motor Company, a family-owned independent car dealership and service provider that has been operating for over 20 years in Myaree, Western… Read more

Australia. We found them to be top marks for a Hassle-free experiance. Theses guys will do everything in their power to insure their clients are satisfied and get a fare deal. Many thanks Daniel and the team. Frank and Jackie.

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Craig W. NSW 2 posts
 

Bought a new car from tynan 8 weeks ago, only driven it the last 2 weeks due to being away and there is a screeching sound, I've called to get it… Read more

looked at my experience has been as follows.

1 unreturned call to sort a time to pop in

When i finally spoke to them they advised, - they couldn't see me for 2 weeks - I could only come in on a Monday as thats their only diagnostics day - it was going to cost 300

All of these things in isolation are somewhat normal I get it, but in a new car, taken as a collective falls massively short of being acceptable for how you should treat a new purchase customer if you’ve sold them a car with problems, this was my third and last car purchase from tynan, they have been slipping in service quality since my first purchase, and ill be spreading the word up at the soccer club and amongst the parents at school because the only thing companies like this respond to is losing business

Tynan Motors
Tynan Motors    

Morning Craig, while I understand you are frustrated… Read more (+2 replies)

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S Warren. QLD
   Verified

⭐ 1 star Very disappointed with our experience at easyauto123. Our salesperson, Hady, told us the vehicle sanitisation fee was compulsory. When he… Read more

sent through the contract, it was listed as an aftermarket fee. I called to question it, and he insisted he had already explained it was a compulsory dealership fee.

When I contacted the dealership the following day, I found out it was optional.

I went into the dealership to speak with a manager and complete the purchase without the fee. When I explained that Hady had misled us, the manager’s response was, “Well, you know the car will come dirty then, right?” There was no acknowledgement of the incorrect information or an apology.

I was then told to wait while someone brought out the revised contract. That took another half an hour.

We were paying cash, yet they also tried to steer us towards finance. The whole experience felt focused on upselling rather than being upfront with customers.

An optional fee should never be presented as compulsory. The way management handled our complaint only made the experience worse.

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jardine_family QLD 3 posts
 

I booked my Suzuki Jimny in for a service at Westpoint Indooroopilly and received confirmation on 8th October for the 10:15am service 'Express… Read more

Service' on 16th October. When I booked the service, I enquired how long would it take and was advise a little over an hour! I dropped the car off at 10:10am and said to the younger female staff member I'll take a walk to the Indooroopilly shopping centre so I can provide 2 hours for the service, and she advised they would need more like 3 hours! The younger female staff member then escorted me upstairs to be shown the customer waiting area and coffee machine if I returned earlier. I returned at 12:45pm to find my car still in the same position I left it, so I wasn't surprised when I was told by an older female staff member it hadn't been done yet and it had a 3:00pm collection time written on the service document. This older female staff member commented she wasn't sure who booked me in and what had caused the miss communication, while the younger female staff member sat next to her with her head down and not speaking up - truly pathetic! The older female staff member (being a rainy day) then had the disgraceful audacity to state jokingly "at least your car got a wash" Being a male professional, I refrained from challenging these female staff members directly due to the current social environment. If the service was likely to take 3 hours and they hadn't started by 12:45pm they were certainly not going to be completed by 3:00pm collection time.

I bought the car new from Westpoint Autos Beaudesert after contacting both Indooroopilly and Beaudesert for a sale quote. When I didn't receive any correspondence from Westpoint Autos Indooroopilly sale team I should have known that this establishment had unacceptable customer service values.

Shaunagh WA
 

These lads are brilliant! Great quality cars, prices for every budget, and not a pushy salesman in sight! Huge shoutout to Paul for helping me find… Read more

my very first car. Absolute gentleman who’s friendly, professional, and no hard sell or funny business!

Went in looking for a car and came out with one I’m absolutely in LOVE with… AND money left over?! Sure, you can’t argue with that! I was treated like a person, not a walking wallet, and couldn’t have asked for a better experience.

If you’re looking for a car, get yourself down to these legends. Good cars, good people, and service that’s hard to beat! I’d recommend them in a heartbeat. Go on, give them a look , you’d be mad not to!

Thanks again Paul!

AaronC WA 2 posts
 

Force you to use their finance. Rip off prices – Not sure where all their 5 star reviews come from as I doubt their validity. As someone else mentioned, they won't sell you a car if you're not using… Read more

their finance.

TLDR: will force you to use their finance. Rip off prices. Selling used cars for more than a brand new car (time to end the Covid tax)

Sent them an enquiry stating I was interested in a car through a lease arrangement. Never heard back from them. Called them up a few days later and asked for the first registration date of that vehicle as it would have qualified for an FBT exemption if registered after July 2022. Was told it was registered in June (how convenient) so I'd lose the FBT benefit of going through a lease and possibly opt for their finance.

Fact is that particular vehicle model was only released in Australia late August 2022 (maybe do your research if you're gonna bullsh*t). Unless you're telling me that this vehicle's a grey import?

Also selling the used vehicle for more than a new one would cost. Current wait times for this particular vehicle is 1 - 2.5 months (so not excessive).

Definitely do your research before approaching these lot as they'll scalp you if they can.

Disappointing because after all those positive reviews, I was hoping they'd be different and honest.

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Wan L.
 

We bought a 2021 Toyota Alphard Hybrid from Best People Movers and had a fantastic experience with Natalia. She was extremely honest and transparent… Read more

about the car, with all documents and paperwork well prepared. Nothing was hidden and everything was clearly explained.

What really stood out was how supportive she was during the inspection and loan process. As first-time buyers of a Japanese import, there were many things we didn’t know, but Natalia guided us through everything and made the whole process smooth.

It’s rare to find a dealer who runs their business with this level of honesty and care. If you’re looking for a Japanese import, I would definitely recommend talking to Natalia.

Ackman VIC 3 posts
 

Purchased a used Nissan X Trail this was all done over the phone ( as I live 3 hrs away) Igor looked after me with Photos and all the car info he… Read more

assured it was a beautiful vehicle and assessed my vehicle from photos also and we bartered and Igor was most helpful we agreed on a price when I arrived for inspection I was not disappointed Anthony did the paper work and showed me over the car so I recommend NMG as Igor was great to deal with not pushy but I felt comfortable dealing with him so thanks Igor and Anthony for a great experience

Manny S.
 

Just purchased another car from Arnie always so professional and welcoming

Chadd J. QLD
 

First service went super well, staff extremely polite and got me back on the road asap. Did have an issue with my new car which Natasha has been a superstar on helping get sorted.

NJ Angel NSW
 

This business goes above and beyond. Adrien (my sales man) is a champion even though I was a complete pain in the neck. Great prices and they do… Read more

everything to help U out. They pick U up from the train station if U have no way to drive there. Highly recommend.

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Matt
 

Purchased a 2015 ranger from them and the next day it was running rough like it has injector trouble. Was told to bring it down and MAYBE we can do… Read more

something about it with no guarantees that they would sort the issue. Since had to book it in with a closer ford dealership so I know its going to be fixed. Not a pleasant experience.

Peter T. NSW 2 posts
 

A great all round experience! – I was in the market for a second hand car and came across the Carizma website in my search. I had my mind on a couple of vehicles that I saw on the… Read more

site. I took my relative along as she too was looking for a vehicle. We had stopped at two car yards before going there. We were amazed by the help we received at Carizma. Alex and Hyula were fantastic. We both found vehicles we liked. She needed finance but ours was a straight forward sale. They helped us from start to finish. No pressure from them. Just good vehicles to choose from.

Kaye stanton NSW
 

I have gone through Blake at watners bay and got the most reliable and beautiful car for my girls and I. Blake was so helpful and polite and he also… Read more

made sure that there wasnt no problems with the car before I took it. Thank you ao much car mart direct. ❤️❤️

John NSW 6 posts
 

The sales staff intentionally gave misleading information then the new cars sales manager just straight out lied to cover their servicing of buying a… Read more

new vehicle. My experience led me to not wanting to even pick the car up. It's taken me months to almost get over the whole disgusting experience. my advice is to go further afield!

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Motor Scout

Motor Scout 🏆 2026

5.0 

Let Motor Scout take the haggle and hassle out of buying a new car. 100% free service!

A car salesman showing a couple a car at a car dealership.

What is a car dealership?

A licensed car dealership is a business that buys, sells, and/or exchanges motor vehicles as a retailer or wholesaler.

Dealerships are typically privately owned franchises, or they operate based on a licensing agreement with car manufacturers.

Many dealerships are mainly made up of a larger new car lot, and a smaller used car section. Others are dedicated solely to selling second-hand cars.

A much smaller percentage are online car dealerships. These let you browse various car makes and models, provide information on pricing and a location to view the car in person.

How do car dealerships make money?

Dealers make around an average of 5% profit on new car sales. In the case of new cars, the manufacturer is more likely than the dealer to make the lion’s share of profits.

For used cars sales, the profit margin for dealers is higher, at around 15%. In this case, dealers usually buy the cars cheap and sell them for a higher price. The dealer may buy the cars cheaply through customer trade-ins, or from a wholesaler that only sells cars to licensed dealers.

A dealership often makes most of its money on: old cars that get traded in, dealer’s finance, car parts and servicing or service packages. All the added extras that you get offered at the end of a sale can add to the dealer’s profit.

Is it better to get a car from a dealership?

Let's take a quick look at how a buying a car at a dealership compares to two other popular purchasing methods - buying a car through a private seller, or getting a car at auction.

CriteriaCar dealershipPrivate saleAuction
Price‘Drive-away’ price is more expensiveCheaper - but plenty of added costs post-purchaseCan snag a bargain - but less flexibility to back out
Price negotiatingCan negotiate priceCan negotiate priceFixed price once agreed to
Mechanic inspection allowedAllowed before purchasing used carsCan request pre-purchase inspectionIndependent inspection before sale is uncommon
Test driveTest drive is standardTest drive subject to seller agreeing to itCan’t test drive car
Trade-in for old carCan usually trade-in old vehicleMust sell old car independentlyMust sell old car independently
Cooling-off period1-day cooling off periodNo cooling-off periodNo cooling-off period
Title guaranteeClear title guaranteeNo clear title guarantee (need to do a PPSR search yourself)Clear title guarantee
Guarantees and warrantiesDealership guarantees apply for most cars soldNo guarantees or warranty, car sold 'as is'No guarantees or warranty, car sold ‘as is’
Australian Consumer Law guaranteesACL guarantees applyState-based consumer protection laws applyState-based consumer protection laws apply

Car dealerships

Dealer guarantees - The main difference

Any licensed car dealership is required by law to provide a dealer guarantee (previously called a statutory guarantee). These are provided in addition to a new car manufacturer’s warranty and in addition to the Australian Consumer Law or ACL guarantees.

Dealer guarantees make a car dealership responsible for fixing any major defects on a car that weren’t revealed in the course of a pre-purchase inspection by a mechanic. This requires the dealer to get the car back into a reasonable condition. This can involve making repairs or remediating - ‘diagnosing’ the problem in order to fix it.

Always check how long the dealer guarantee lasts for - known as the limitation period. The limitation period could be a time period or the distance driven. Once this is elapsed or reached, the guarantee no longer applies - but you can look to the manufacturer's warranty or ACL guarantees for help fixing the problem.

Used car dealer guarantees

If you’re buying second-hand, dealer guarantees also include a requirement to guarantee the second-hand car has the following:

  • No hidden debts: Guarantee that there's no money owing on the car by a third party.
  • Any pre-existing damage must be disclosed such as flood or hail damage, or major modifications.
  • Clear title guarantee: This means the car comes with full title in your name, and ownership.

Used cars sold 'as is'

Note that some used cars at a dealership are advertised and sold ‘as is.’ These cars are sold unregistered and without any warranties or guarantees. These cars may be cheaper but they are riskier to buy. However, you can hire a certified mechanic to inspect the vehicle before purchasing, to ideally identify what needs to be fixed. If repairs won’t be too expensive, you may score a bargain - if you're okay with purchasing without a warranty or guarantees.

Private sales

Private sale guarantees

If you buy a car privately, the seller is under no legal obligation to guarantee that they’ll fix the car if there are any defects that present themselves after purchase. The seller is also not required to provide a warranty.

This means you’re on your own if the car has latent defects, or is the subject of a barely-disguised bad repair job. What's riskier is that you won't be covered by Australian Consumer Law in the event that something does go wrong. ACL only applies to businesses, and private sellers are usually individuals.

Private sale prices

While buying a car privately initially seems cheaper than buying at a dealership, it's likely to end up being more expensive than buying from a dealer.

When buying privately, you’ll need to tack on costs like a transfer fee, and stamp duty - calculated as a percentage of the car’s market value, not the sale price.

In comparison, dealers usually quote you a ‘drive-away’ price that includes everything in one figure. This includes dealer fees, stamp duty and registration. It’s worth shopping at multiple dealerships to compare the drive-away prices, as they can be quite competitive to get your sale.

Buying direct from the manufacturer

This is another way to buy a new car, however it’s more common for high-end car brands such as Tesla or Genesis. There are a few more everyday brands that are starting to offer this too, such as Honda.

However, a major drawback is that you can’t haggle on price when buying direct from the manufacturer. Also expect to wait some time before getting your car, as it’s rare to find available on-the-floor models.

For luxury cars, showrooms and experience centres let you browse cars and enjoy the experience without the pressure of a salesperson hovering over your shoulder.

Auction

Most cars sold at auction are sold ‘as is’ - without a warranty or guarantees, and are unregistered. This is the same situation as a car bought through a private sale.

Top 10 tips for buying a car at a dealership

1. Do your research first

You’ll definitely feel more confident walking into a car dealership if you know what you’re looking for. This helps you stay firm about your priorities and reduces the likelihood of becoming swayed by emotion when you’re charmed by cars that aren't in your wheelhouse - practically or financially.

This includes choosing the specific car you wish to buy beforehand. You can check the following so you know buying that particular car is the right decision for you: manufacturer websites, online car dealerships, car pricing sites like Red Book, expert reviews, buyer’s guides, reliability surveys and ANCAP safety ratings.

In terms of ongoing future costs, it will also be useful to check the following: fuel efficiency, car insurance costs, and resale value (this is based on the build plate date - the year the car was manufactured in). Also check that the model has a manufacturer-backed warranty.

Getting a fair trade-in price

If you're planning to sell your old car, most dealers will accept a trade-in.

Do some research on your car value and how much you’re likely to fetch for it through a private sale. This way you’ll be able to easily compare this figure with a dealer’s offer for a trade-in. The price you’ll get depends on a few factors, such as the popularity of the model and the condition the car is in. Keeping receipts from car servicing can help you get a better price.

When determining the trade-in viability at a dealer, ask for the changeover price. This is the total amount you’ll pay for your new car, minus the amount the dealer gives you for trading in your old car.

2. Organise your finances

Having your finances sorted out before you agree to buy a car helps you know whether you’re getting a good deal or not.

Dealer finance is often offered, and dealers make money on securing a successful loan arrangement. You can’t trust promises from a car salesperson that ‘this is the best interest rate you’ll get’, because it’s just not objective financial advice.

Again, do your research beforehand on how to find the best car loan. Compare interest rates from banks, loan companies and credit unions to see what the most competitive rates are. This will let you apply sound judgement when a dealer offers the ‘best interest rate’ - you’ll know whether it actually is or not.

3. Get a Pre-purchase inspection

This is especially important if you’re looking for second hand cars for sale. It’s not as crucial to inspect new cars as they’re covered by the manufacturer’s warranty.

However, for used cars a full mechanic check is required to make sure the car is roadworthy. Used car dealerships will often do reconditioning on a car - making cosmetic enhancements to the car body so it looks shiny and inviting. You want to make sure there are no nasty surprises under the bonnet.

An inspection reveals any obvious defects, like damage from a car accident, hail damage, a bad repair job, etc. This is part of your due diligence as a buyer. Being aware of any problems from the outset can avoid the financial burden of costly repairs later.

It can also strengthen your bargaining position - if you’re aware of any issues needing fixing, but still decide to buy the car, you can use this knowledge to negotiate a lower sale price with the dealer.

4. Go for a test drive

Used cars

The test drive is especially important if you’re buying a second hand car. Hand in hand with a pre-purchase inspection, a test drive is one of the steps to take to make sure you’re not buying a lemon.

While it won’t alert you to all a car’s problems, it’s a good way to check the car isn’t plagued by obvious problems such as the car giving off smoke or having a rattling engine.

New Cars

For new cars, the test drive is about making sure the car feels right for you. It should feel comfortable to drive. Also keep a mental note of what you need in a car, and check that a prospective car ticks those boxes. For example, you might need enough storage space in the boot for soccer gear, or a built-in GPS that’s easy to use.

5. Be wary of optional extras

Dealers don’t make too much profit from the actual car sale, but they do pocket more cash on the extras.

Commonly, these can include fabric proofing, floor mats, as well as rust and paint protection. As a rule of thumb, if you don’t understand what’s being offered or haven’t heard of it before, don’t accept.

Some ‘extras’ like paint and rust protection, as well as capped servicing packages, are already included in the warranty, so if you opt for these without doing research first, you’d be handing over more money for no reason.

6. Carefully consider whether you need an extended warranty

There are two types of car warranties - manufacturer warranties and extended warranties.

Manufacturer warranty

Almost all new cars will come with a manufacturer warranty, also called a factory warranty. These typically cover repairs for mechanical failures due to design defects or faulty car parts. They usually last 3 years or 80,000 km as a minimum (whichever comes first), however the exact warranty details depend on the specific car and manufacturer in question.

Dealer/Extended warranty

You can also choose to buy an extended warranty, which is provided by the dealer. This kicks into gear after the manufacturer's warranty expires. For example, if you buy a Fiat 500 with a 3-year standard warranty, and then a 3-year extended warranty on top, you’ll be protected for 6 years.

Extended warranties are usually bought to give the buyer extra peace of mind. You might never have to make a claim for the entire warranty period.

It may be useful to keep the following factors in mind when making your decision:

  • Dealerships usually get a big chunk of commission from selling an extended warranty: sometimes up to 50% of what you pay.
  • Coverage in an extended warranty won’t neccessarily match what’s covered in the manufacturer’s warranty. Extended warranties are rarely manufacturer-backed.
  • You’ll still have protection under the Australian Consumer Law guarantees, even if you say no to the extended warranty. ACL guarantees ensure cars must be of an acceptable quality and provide remedies if they're not.

Used car warranties

If you buy a pre-owned vehicle at a dealership, you get a used car statutory warranty. This is provided the car has less than 160,000 km on its odometer, is less than 10 years old and doesn't exceed the luxury car tax threshold ($77,565).

This warranty is valid for 3 months or 5,000km from the day you purchase the car - whichever comes first. The statutory warranty covers major defects, but excludes ordinary wear and tear.

7. Only talk about price at the end

This gives you more bargaining power and allows you to negotiate the best price. One of the benefits of buying from a car dealership is that you can haggle on price - so don’t be afraid to do it.

8. Question the fees and charges

These fees or item lines may include dealer delivery fees, documentation fees, and processing fees. Always question these fees, especially if you're paying for dealer delivery fees on a car that was already on the lot of the dealership (for example, a demonstrator model or floor stock).

9. Don’t succumb to pressure

Don’t buy into common selling traps, such as a dealer saying a certain price is for a limited time only.

Play it cool and don’t worry that an attractive offer from a dealer will be taken back or ‘expire’ if you don’t say yes and sign the papers straight away. It’s okay to take your time and have a think. This may be an exception if the car is a limited edition - for example limited by how many models are being produced, not limited edition by name. However, in the vast majority of cases there’s no reason you need to shake hands on the spot.

Car salespeople know how to put the pressure on - but if you’re well-prepared for this beforehand, you can resist this, even when under the guise of charming customer service.

10. Shop around

A car is usually the second most valuable asset a person will own, apart from real estate. Making a financial commitment you’re confident you can keep is likely to save you from stress in the future.

Shopping around is usually the best way to do this. Get quotes from at least three dealerships, and make sure you’re comparing the drive-away price for all three - with all costs included. Don’t sign anything until you’re absolutely ready to, and make sure that any deposit you pay is fully refundable in case you change your mind.

The bottom line

If you're in the market for a new or used car (but new to you), visiting a car dealership to make the purchase has a number of potential plus points. To make sure you get the best possible deal, always make sure to take a few precautionary steps.

These steps include knowing the make and model of car you're interested in buying beforehand, organising your finances, and being flexible. You don't have to sign anything on the spot, and always be prepared to shop around to compare prices. This will all help avoid a headache when buying a new car, and help keep the fun in it.