Buying a new car

[tgwinduna]

Buying a new car today is a no brainer as long as you buy it from a reputable chain of used car dealerships or from the used car section of a dealership. Smaller outlets you need to confirm if they have the mandatory finance banks insurance in place. Why! Because the CPA has stepped up to the plate. Theoritically buying a secon hand car to day you get the equivelant of 6 months new car warranty. To buy a car from and auction or privately from some unknown or known you have no protection if anything goes wrong! goes wrong!.

Here is an example, used car dealer comes to me to check out a Disco 3 TDV6HSE 1st reg 2007 MY6a (Built in 2006). The only way I can honestly check that vehicle out is to do the five oil test. Engine,gearbox,xfer box and both diffs plus mechanical test on suspension. Cost R2500.00 cool he says go for it. We get the car on Sat morning and we draw oil. Here were the results.
Engine seapoint.pdf
Auto box.pdf
xfer box.pdf
Front diff.pdf
rear diff.pdf

Plus the car had done 169k kilos and cambelt change due at 168k, Both lower control arms were shot.
He could get the car for R200k and wanted to retail it for R270k. Which in my book is a good price. But!!!
In order to repair that car up to spec and not expect any further problems for at least 6 month he would have to spend R76k plus vat. Guess what the dealer decided he did not want to buy the car any more.
Now some sucker is going to buy that car a a good price and think he has a bargain. That Sucks.
Beware when you are shopping around the auction floors because that is exactly what type of car you are likely to pick. Bye the way this very car came from a Land Rover dealership and they did not want to sell it off their floor and you know why.
Useful information.

Take care

[Blue Shirt]

Question: why did the car get into that condition? Lack of proper maintenance, neglect, poor design/workmanship?

People complain about poor trade-in values or second-hand values, this is exactly the reason why. Owners often defer maintenance after the service plan (motorplan) period runs out, then complain when they get nothing for trading a car in that condition with 169k on the odo.

My motto: I buy used, but at most 2 yr old with enough time/mileage left on the service plan to get it fixed properly should anything go bang.

Too many people buy "new", but don't figure in maintenance costs after expiry of the service plan.

BTW, the title of your fred should be "Buying a used car". There is nothing "new" about a car with 169k on the odo except the unsuspecting "new" owner.

[Photokid]

I'd like to know which dealer it is that decided he'd rather not sell that on his floor. I'd buy from them.

[Apocalypse]

no new car dealer will put a used car that is out of it's factory warranty on their floor...

has been like that for years. it gets sold into the trade if it's traded in on a new one.

for exactly the reasons Peter describes!!

[tgwinduna]

I'd like to know which dealer it is that decided he'd rather not sell that on his floor. I'd buy from them.

Hi Photokid
Not so fast. It turns out that the dealer was testing me on how thorough I would do the tests and told me to go ahead and do everything for which I quoted for now refuses to pay my bill and calls me a cheat and rip off artist. Not bad for saving him a repair bill of R76k. He returned the vehicle to the wholesaler who according to him also said that the tests I did were untrue because a Land Rover dealer went through the vehicle with a fine tooth comb and gave it a clean sheet.That vehicle is going out into the market and some sucker will fall fowl maybe not in the first six months but definately in the first year.
How many people do you know that have bought a supposedly good second hand or slightly used cars with aftermarket warranties and still had to lay out 20 to 30k out of their pockets over and above the warranty pay out for repairs.
I see it every day.

Take care

[Photokid]

no new car dealer will put a used car that is out of it's factory warranty on their floor...

has been like that for years. it gets sold into the trade if it's traded in on a new one.

for exactly the reasons Peter describes!!

Thanks for that. I didn't know.

Hi Photokid
Not so fast. It turns out that the dealer was testing me on how thorough I would do the tests and told me to go ahead and do everything for which I quoted for now refuses to pay my bill and calls me a cheat and rip off artist. Not bad for saving him a repair bill of R76k. He returned the vehicle to the wholesaler who according to him also said that the tests I did were untrue because a Land Rover dealer went through the vehicle with a fine tooth comb and gave it a clean sheet.That vehicle is going out into the market and some sucker will fall fowl maybe not in the first six months but definately in the first year.
How many people do you know that have bought a supposedly good second hand or slightly used cars with aftermarket warranties and still had to lay out 20 to 30k out of their pockets over and above the warranty pay out for repairs.
I see it every day.

Take care

Oh, so they all are the same...almost.
Yeah man, I heard one too many times about the aftermarket warranties not being upheld.
There must be some that are actually worth it?

[Elders]

also note - when a dealer sells a vehicle "on consignment" it is NOT covered by the CPA !!


interesting post Peter, thanks

[mfour]

I was speaking to someone about this the pother day. I think SA's future for second used cars is looking very bleak. With the amount of new TD's an CRD's on the road at the moment I can't help wondering how many of them will actually be properly serviced, especially once out of the Maintenance plan. Same goes for petrol cars (especially all the turbo charged shopping cars), and generally all new cars today have such a load of electronics and "new tech" on board, all of which will be frightfully expensive to replace out of warranty.

The are still a few decent "not so hi-tech" used vehicles out there, but once they are over the hill the used car market will be left with no choice to buy those neglected high maintenance cost vehicles. Typically someone buying used does not necessarily have the bank account to support high maintenance costs once those fancy bits break. I see a lot of future used vehicles standing broken down in garages waiting for its owner to get enough bucks together to get it running, whilst still dealing with monthly installments for something they can't use. Well that's just the doom prophet in me talking.

Used is fast becoming un-affordable. Possible second hand value crash on the cards for the future?