Buying a car is a big investment and if you’re buying for the first time, things can be a little bit confusing. Having to think about which type of car to go for at what price, the safety ratings, the practicality, etc.
This is where a good sales consultant can really help, but there may still be some terms you’ll hear that you may not quite understand, so here’s a quick guide to some of the most common auto lingo.
Capped Price Servicing
Capped Price Servicing sets a maximum price that a brand’s service centre can charge for a scheduled service. Ensure you check the Capped Price Servicing plan of the car you’re interested in, before buying.
Means the price of the car covers almost all your on-road costs. These usually include dealer delivery, registration, new plate fees, registration transfer fees, etc.
If you’re buying a demo car, you’re buying a new car that has been driven by the dealership’s staff or as test-drive vehicles by interested customers. The car can have a few dozen to a few thousand kilometres on them. The price will be lower but keep in mind that warranties have already started on these cars.
On-road costs include those pesky little extra costs you normally wouldn’t think about when buying a product such as stamp duty, registration, compulsory third-party (CTP) insurance and dealer delivery charges. If a dealer advertises a car with a ‘no on-road costs’, or a ‘drive-away price’, then you won’t need to pay for these on-road costs.
One of the best times to buy a new car is at the end of the calendar year when dealers want to move as much of the current-year stock as possible. This is called a plate clearance because it relates to the date stamped on the car’s build plates.
This usually occurs when manufacturers are ending production of a model, and introducing a refreshed model, or basically ‘running out of stock.’
Hopefully this will help you next time you go into a dealership or see some ads on TV.
Debbie Clark is the Dealer Principal at Nepean Motor Group. Visit www.nepeanmotorgroup.com.au.