General > General Technical Chat

Is it difficult to buy a car in Australia?

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Bassman59:

--- Quote from: nctnico on September 28, 2018, 10:24:40 pm ---I'm not a fan of car sales people either. I very much prefer to buy a car directly from someone else. When I go look for a car my price is fixed. If I don't get it for the price I want I won't buy it and wait for another good deal to come up.

@Bassman59: but how about non-branded car sellers and garages? Or don't they exist?

--- End quote ---

In most states, new cars are only available for purchase through a branded, franchised dealer, for the reason I mentioned. Some states allow new-car "brokers" which arrange sales, but ultimately the purchase is made from a franchised dealer.

To be clear: the franchised dealer displays the vehicle manufacturer's brand name and the idea is to make the customer think that the Ford Motor Company controls the business. But that's not true. The franchise is an independent business, a middleman, who has agreements with the manufacturers to advertise and sell the cars.

It is almost impossible for a manufacturer to pull the franchise from a bad dealer, even one which gets a shit-ton of complaints.

Used vehicles are a different story. A franchised dealer will often have used cars for sale, even of other brands. But most used cars are sold through independent used-car dealers or private-party (person-to-person) sales.

Bassman59:

--- Quote from: Halcyon on September 28, 2018, 10:51:36 pm ---EDIT: I just read Bassman59's comments about territories. They don't exist in Australia. You can go to any dealer in Australia and buy a car as long as you have it registered and it passes roadworthy requirements in the state you live in.
--- End quote ---

What I mean by "territories" are the agreements among the car dealers to divide up geographical regions and not compete against each other. The idea is to make it inconvenient for a consumer to go to another dealer of the same brand. "Aren't their laws against that?" Sure .... written by the same people who require franchised dealers instead of direct manufacturer-to-customer sales.

I live in Arizona. There is nothing stopping me from saying, "I hate all of the dealers in Tucson, so I'll drive 100 miles north to Tempe or 120 miles north to Phoenix and buy a car." It's a royal pain in the ass, and oh yeah, the dealers who own franchises in Tucson also own the franchises in Phoenix ...

I can drive to California or New Mexico and buy a new car and register it in Arizona without any problems.

coppice:

--- Quote from: Bassman59 on October 03, 2018, 05:07:00 pm ---
--- Quote from: Halcyon on September 28, 2018, 10:51:36 pm ---EDIT: I just read Bassman59's comments about territories. They don't exist in Australia. You can go to any dealer in Australia and buy a car as long as you have it registered and it passes roadworthy requirements in the state you live in.
--- End quote ---

What I mean by "territories" are the agreements among the car dealers to divide up geographical regions and not compete against each other. The idea is to make it inconvenient for a consumer to go to another dealer of the same brand. "Aren't their laws against that?" Sure .... written by the same people who require franchised dealers instead of direct manufacturer-to-customer sales.

I live in Arizona. There is nothing stopping me from saying, "I hate all of the dealers in Tucson, so I'll drive 100 miles north to Tempe or 120 miles north to Phoenix and buy a car." It's a royal pain in the ass, and oh yeah, the dealers who own franchises in Tucson also own the franchises in Phoenix ...

I can drive to California or New Mexico and buy a new car and register it in Arizona without any problems.

--- End quote ---
What happens with warranty claims and servicing when you buy from a distant dealer?

stevelup:
The warranty is provided by BMW North America - not the individual dealers.

Bassman59:

--- Quote from: coppice on October 03, 2018, 05:33:18 pm ---
--- Quote from: Bassman59 on October 03, 2018, 05:07:00 pm ---
--- Quote from: Halcyon on September 28, 2018, 10:51:36 pm ---EDIT: I just read Bassman59's comments about territories. They don't exist in Australia. You can go to any dealer in Australia and buy a car as long as you have it registered and it passes roadworthy requirements in the state you live in.
--- End quote ---

What I mean by "territories" are the agreements among the car dealers to divide up geographical regions and not compete against each other. The idea is to make it inconvenient for a consumer to go to another dealer of the same brand. "Aren't their laws against that?" Sure .... written by the same people who require franchised dealers instead of direct manufacturer-to-customer sales.

I live in Arizona. There is nothing stopping me from saying, "I hate all of the dealers in Tucson, so I'll drive 100 miles north to Tempe or 120 miles north to Phoenix and buy a car." It's a royal pain in the ass, and oh yeah, the dealers who own franchises in Tucson also own the franchises in Phoenix ...

I can drive to California or New Mexico and buy a new car and register it in Arizona without any problems.

--- End quote ---
What happens with warranty claims and servicing when you buy from a distant dealer?

--- End quote ---

Any franchised dealer will take care of warranty claims, regardless of where you purchased the car. After all, for warranty work the dealer's service department is reimbursed by the factory. The warranty is issued by the manufacturer.

As for regular service (oil changes, what-not) and out-of-warranty repairs, any dealer will do the work and charge you for it.

It's no different from buying a new car in New Jersey and a year later moving to Arizona and then needing warranty work or regular service or repairs.

Edit to add: all of the dealers push extended warranties. Those aren't issued or backed by the manufacturer, and they're not issued by the dealer. They are third-party deals. Those extended warranties are to be avoided. There is no guarantee that if you move out of state that they will be handled, and the issuers of those warranties are notorious for doing everything possible to avoid paying claims.

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