David Lye Purchasing A Car Interview
Buying a car is never an easy process and it can be quite daunting. From choosing the right car, to finding the right price, all in a timely manner, can be difficult.
David Lye, founder of Private Fleet, one of Australia's largest car broking firms, understands the pains and concerns when buying or updating your car. With over 15 years of experience in the automotive industry, David knows the mistakes to avoid when purchasing a new car:
'Buying a car can be such a hard, time consuming and confusing process as there is so much information these days it can be difficult to digest and find the best price. Over the years I have had so many people come to me and complain about issues experienced throughout the car buying process and with this insight I am able to see mistakes that people make that they don't even realise," says David.
Here are David's 5 tips on the biggest mistakes to avoid when purchasing a new car:
The sacrificial lamb
This is when you see a heavily discounted car advertised online. It sounds great so you ring the dealer and arrange to come down and have a test-drive. However, when you get there, the car salesman tells you the car has just sold but not to worry as there are plenty of other options.
It is just a marketing ploy to trick you into coming to the dealership so they can talk you into buying a car.
Beware the ex-demo
It's easy to assume that you will get great value buying a demo car but that's not always the case. Sure, it may be advertised at a 20% discount from retail but could you negotiate that or more on a brand new car? Also, think hard – is that the exact configuration in terms of options and colours to be your perfect match or are you compromising and trying to convince yourself it is? Lastly, the km – it only has 2,000 km which is nothing but, in terms of test-drives that could be 200+ different people giving it a workout.
Don't think your trade-in is worth more than it is
It's easy to hop online and see dozens of cars similar to yours for sale at a reasonable price. However remember this is the advertised price, not the sale price. These listings could have been there for months without even a nibble. When you trade a car, you should expect the best possible wholesale price. That's the price a wholesaler pays – he then puts it through the auction for a used car dealer to buy, taking a cut along the way. The used car dealer then has to transport it, get it fit for sale (detail, fix up a niggle here or there), finance it, advertise it, store it on his lot, pay a salesman to sell it, register it, cover the mandatory warranty and make a dollar himself. All these steps mean there's a bigger difference between wholesale and retail than you might think.
Consider buying options & accessories later
Aftermarket products may be a lot cheaper than through the dealer. Not only do dealers like to make a decent margin on them but often the branded products cost a lot more to start with. Also, you're likely to pay Stamp Duty (that can be up to 5%) and possible Luxury Car Tax (33% for cars valued over $61,884) on every dollar of accessories if you buy them with the car order.
Use a professional
You wouldn't go out and buy or sell a car without speaking to a professional so why not do the same when dealing with the second biggest purchase you're ever likely to make. It costs nothing to make an enquiry with a car broker and it could save you thousands, in money and hours of time. Private Fleet takes the hassle out of buying a car
Buying a car is never a simple or speedy task. From researching which car to purchase to finding the best price, it can be a long and daunting process. Luckily there is a company that takes the hassle out of the experience and does the work for you.
Private Fleet is one of Australia's largest car broking firms that aids consumers when purchasing a new automobile. Since its inception in 1999 it has helped 25,000 customers buy their latest cars. Consumers simply need to call Private Fleet, tell them the type of car they have in mind and the team does the rest which can include test driving the car.
Private Fleet is also able to offer lower, more competitive prices than car dealerships. As Private Fleet purchase over 250 cars a month they are able to bargain down the prices so customers can save thousands of dollars.
The cars are delivered to the client's door with a full tank of petrol and the keys, ready to go. Private Fleet also offer ongoing customer service after the car has arrived for any problems or questions the customer may have.
Private Fleet has built up its reputation over 15 years in the industry with 40 employees all over Australia, working to make sure everything runs smoothly for each customer.
For more information, please visit www.privatefleet.com.au
Interview with David Lye
Question: What are the common mistakes people make when purchasing a car?
David Lye: Almost too many to mention. One real common one is getting too excited and going way over budget. It's an emotional purchase and who can blame car dealers from taking advantage! Being structured and objective about the purchase makes this much less likely as you'll be less likely to end up with a car you didn't really want/need and for a price you're happier with!
Question: How can we ensure we avoid these mistakes?
David Lye: Be informed. Information is power and these days it's easy to do the preparation online. Plenty of sites list RRPs for all models and the manufacture's sites are a wealth of information. But also, don't ignore the -old-fashioned' research sources. Friends, family, your mechanic etc. take your time, read reviews and make sure you're as satisfied as you can be with your decision before actually making any contact with the dealers. Then strike!
Question: Where should we begin our car purchasing process?
David Lye: Taking another step backwards, spend some time working out what you need a car for and how you're going to use it. Is it for the daily grind in stationary traffic? Or is it for lease – getting off the beaten track with a couple of bikes and a surfboard. Both mean very different needs. And anticipate your future too – will you need to accommodate kids, grandkids, in-laws or a new dog? The car needs to be right for the whole family.
Question: How can we make our car buying process less daunting?
David Lye: So know what you need and have done your research. That's great in itself. But now, you've decided, the best thing is let someone else do all the tricky stuff for you. A car broker or car buying service, armed with the full spec of what you are looking for, can go out to the market and source the deal. No haggling with dealers and wasting your weekend getting the hard sell!
Question: What is Private Fleet?
David Lye: Glad you asked! Private Fleet is a car buying service – set up specifically to help Australians with their car buying needs. You tell us what you want and we go out and do the rest. Negotiate a rock-bottom price and have the car delivered to your door with a full tank of fuel. We've been doing this for private buyers since 1999 and 30,000 people are happily driving their Private Fleet – sourced cars!
Question: What inspired the beginning of Private Fleet?
David Lye: Nicholas Crawshay, one of the founders used to work in a car dealership. He could see the look on many customers faces when they walked in the car showroom. They looked like they would rather be at the dentist than buying a new car. Which, of course, is the opposite to what someone should be feeling. It should be an exciting time! So, a personal car buying service was born and 16 years later we're still helping hundreds of Aussies every month!
Question: How does Private Fleet make the car buying process easier?
David Lye: We do all the sticky bits for you. We negotiate the price, sure, but also do the hard yards to find the car as quickly as possible. Only available model in your colour in QLD and you live in NSW? No problem, don't compromise, we'll get it shipped down overnight. You see we don't sell our own stock – we work for you and draw upon our buying power and network of over 1,000 dealers to get the best overall deal.
Question: Why should we be wary of an ex-demo car?
David Lye: Demos are a little like deceased estates. People get so carried away by them that they risk ending up overpaying! In my opinion, if you're buying a new car, then there should be no compromises. Period. It's your privilege to get exactly what you want and that's that. When people buy demos they tend to convince themselves into a compromise. They take their 2nd colour choice or the model without the sunroof. And that can't be undone. Plus, often we save our customers considerably more on a brand new car than what people pay for the equivalent demo! So the compromise actually costs them more! Then there's the low kms… sure 2,000 kms isn't much. But if the average test-drive is 10kms, that's a lot of people giving your -new' car a workout before you even set foot in it. Of course, most dealers will say -Oh yes, this may be registered as a demo but really it's the Dealer Principal's wife's car and she only drives it sedately to church on a Sunday…'. Yeah right!
Question: What tricks do car-salesman use regarding trade-ins?
David Lye: Apart from the old -throw the keys on the roof so you can't leave' one?
Interview by Brooke Hunter