BUYING A NEW  CAR

SHOP AROUND FOR FINANCE AND INSURANCE

You don't have to use the dealer's finance or insurance.   Before you talk to your dealer, check out the rates that banks, credit unions and finance companies are offering -- you could end up saving a great deal of money.  If you add your vehicle insurance to your loan, be aware that you will be paying interest on your insurance costs as well.

COMPARE TRADE-IN OFFERS

Be wary of high trade-in offers.  The price of your new car may be increased to cover the difference.  Before you hand over your old car, be sure to agree on a specific delivery date for the new one.  Make sure you can afford the change-over cost.

KNOW WHAT YOU ARE SIGNING

If you sign your name to anything it is probably a contract.  A contract is a legally enforceable document.

Read all documents carefully and do not sign anything that is unclear or you do not agree with.  If you are unsure about anything, it can be a good idea to take the contract away and get independent advice.  Do not leave any spaces blank or unfilled.

If you are not happy with any clause in the contract ask for it to be deleted.  Be particularly wary of clauses that allow the dealer to change the price or terms of your purchase.

The order form may be a legal contract to buy the car.  Do not sign any document until you are sure you intend to purchase the vehicle.

The dealer could sue you for damages, and you may lose your deposit, or a percentage of the full price of the vehicle to cover the dealer's costs.

UNDERSTAND YOUR WARRANTY

All new vehicles are covered by a 20,000 km or 12 month warranty.  Some manufacturers extend this warranty.

PRE-DELIVERY INSPECTION

Check the vehicle carefully with the salesperson for any damage to the bodywork or the interior trim.  Make sure that all accessories have been delivered and that the dealer has arranged registration and the "green slip" (Compulsory Third Party Insurance) in your name.