Private Sales Or Dealerships
Sometimes car buyers find that buying a car privately costs much less than buying the same car from the dealership. Though it may seem this way, there are many costs and benefits that an individual might not consider.
Such as:
Stamp Duty
Stamp duty is the amount paid to the government when new or used cars are changing ownership.
In QLD, the stamp duty of the car is based on its engine type. For hybrid and electric cars, the stamp duty is only $2 per $100 of the car’s value. While for vehicles with seven cylinders and more, they are charged most around $4 per $100 of the car’s value.
When a customer purchases a car from the dealership, their “driveway” price includes stamp duty. But this is not true when buying a car privately. If you buy a car from a private seller, you need to pay the duty directly to the Transport Department and also pay the fee to transfer the registration number plates to your name.
Statutory Warranty
A statutory warranty is a warranty enforced by the government to protect the used car buyer from any significant problems within the car. This is especially necessary for issues that do not show up in the pre-purchase inspection.
This warranty lasts for 5000 km or three months, whatever comes first. If the vehicle is damaged during this time, the dealer must pay for repairs.
But when purchasing a vehicle via private sale, the buyer gets no such guarantees. After the paperwork is done and the car’s title transferred, the vehicle is the buyer’s problem, and the previous owner is not liable for any faults that will occur in the future.
Cooling Off Periods
The cooling-off period is a period after purchasing a product, where the customer can choose to cancel the purchase or return the goods if they are not satisfied with them.
When purchasing a vehicle from a dealership, customers are provided a cooling-off period of 24 hours. During this time, they can decide if they are ready to commit to this vehicle or not.
But when a car is purchased via a private seller. They do not provide any cool-off period because they are sold on consignment.
Elements such as stamp duties, statutory warranty, cool-off periods are all the extra services. provided by the dealership which is not offered during private sales. That’s why the prices of the dealership seem higher than that of vehicles sold privately. If private sales and dealerships are not to your liking and you prefer even faster service, choose us. We offer $8500 for all types of vehicles in QLD and provide FREE car removal service gold coast and other areas too.
Last updated on February 22nd, 2023 at 06:53 pm
