JZ Motors

Used car dealer in Melbourne

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PH: 03 9752 2799
FAX: 03 9752 2965
jzmotors@bigpond.net.au

LMCT 8365
1100 Burwood Highway Ferntree Gully 3156 Victoria

MELBOURNE 4WD AND COMMERCIALS SPECIALISTS

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Just How Much Does It Take to Purchase a Used Car?

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You might think that closing a deal and getting the car of your dreams simply involves handing over that cash to the seller. But think again. Whatever price you agreed together is just part of a series of payments you need to make to finalize the purchase. Because these costs quickly add up from a few hundred dollars to thousands, arm yourself with this information to help you stay within your budget.

Transfer of  Registration

In new South wales, transfer of registration requires a minimal fee of $31. While in the state of Victoria, the same requirement would cost you about $36.40 if the transfer registration involves a private sale. Purchase your car from a dealer and the fee would cost only $18.50. In other part of the country, you pay lower amounts in general: about $22 in Queensland and $24.45 in South Australia.

In addition, keep in mind that some private sellers, in an attempt to save on renewal costs, put their used cars on sale just when the registration is about to expire or have already gone past the expiration date. This increases your financial burden as you in turn have to bear the renewal cost. Also, always be careful when registering the vehicle in different states because additional payments may be required, depending on the location.

Car Stamp Duty

Car stamp duty is another fee required by the government, the amount of which will vary according to the cost and the condition of the car when it was purchased. And it is only in special circumstances — such as transfer of registration from husband to wife, for example — that the payment of car stamp duty is not required. The amount varies because it becomes greater as the purchase price increases.

Luxury Car Tax

Yes, that flashy BMW or Lamborghini doesn’t come without a hefty price tag, be it the purchase price or what we call the Luxury Car Tax (LCT). In Australia, LCT amounts to 33% of the car’s value. The same amount is applied for imported cars that cost $62,000 and above.

Third Party Insurance

Just because you don’t see yourself driving your favorite car that often doesn’t mean you can opt-out of paying for third party insurance. Yes, it is compulsory whether or not you spend more time on the road. In fact, you need to secure this requirement even before you register your car, hence the need to include this to your list of expenses when buying a used vehicle.

Personal Property Securities Register (PPSR) Check

Obtaining the Vehicle Identification Number for PPSR check may not a mandatory requirement, but for just $36.95, you get all the information you need on the history of the used car before even buying it. By checking the VIN with PPSR, you will know whether the particular vehicle carries financial encumbrances, has been stolen or written off, or had undergone a major repair resulting from a serious accident.

Buying Used Car? Here’s How to Avoid the Rip-Offs

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Directly buying used car from its owner may save you from potentially huge dealer mark-ups and other fees. But as the industry becomes more independent, dispersed and unregulated, unknowingly buying a lemon has become a more likely reality. And as what was common in the days past, the seller could just be the neighbor next to you, your friend or a relative. But with the Internet, everyone now has access to any buyer or seller from across the country — with just a click of the mouse button.

Now comes the reality with online transactions: we’ve never become closer to possible scams than ever before. According to a Veda Auto report, a little more than one tenth of used car buyers fall prey into buying vehicles with previously hidden issues, only to discover them a little too late. And the most common issues involves were poor vehicle maintenance resulting in compromised safety, mismatched or non-existent vehicle identification numbers and accident records that were left undisclosed.

But how do we guard ourselves in the process?

The answer is as obvious as immediately checking the vehicle yourself. Check for any misaligned doors that might be a subtle sign of previous warping resulting from an accident, the dominant smell of mildew inside the car for possible history of flooding, and most importantly the engine’s condition. Of course, drive-testing the car is also a must.

After running through a physical check, go ahead with obtaining the Vehicle Identification Number (VIN), and run it with the Personal Property Securities Register (PPSR). The latter provides a comprehensive background record of the automobile in question — records that may tell you whether the car was previously stolen, written-off or any recorded accidents.

The bottom line? It’s never wrong to take extra care when buying used cars. You have every right to get the details from the seller, even if that means having the car double-checked with a licensed mechanic and the appropriate government agency. After all, when it comes to investing your money, you’re in full control.

What You Need to Know About Buying Used Cars at Auction

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Buying cars at auctions is not something we regularly do. And getting the car of your dreams by winning a bid is one option not many of us are willing to choose. That means it is completely understandable that we don’t often get to know what a car auction is. But if you’re willing to choose this path to getting your own automobile, we share with you the following tips and useful information. Read on.

What is a Car Auction?

A car auction is usually a privately owned company that sells vehicles — usually used cars — by auction, meaning that buyers need to make a bid for the automobile of their choice. Anyone with the highest bid takes the car home.  Because vehicle auctions can be fairly common sight in some states, government regulations are sometimes put in place to protect the interest of buyers and dealers.

Car auctions are different from regular dealerships in a way that auction dealers usually collect their vehicles from finance companies, fleet operators and many other private owners. And because auctioned cars are usually privately owned and mostly well-maintained, you’re more likely to chance upon a good make and model you bid for.

To give you enough time to inspect the automobiles, these cars are subjected to preview days before the actual auction begins. You can even inspect one up close like looking under the bonnet or sitting inside it. However, unlike regular dealerships, you can’t do a test-drive a car for auction. This means needing more time to research on the vehicle before you even place a bid.

What You Need to Know Before Bidding

Before placing a bid, there are some important things that you might need to know. For example, once you win a bid and the car is awarded to you, there is no turning back. You might be required to pay the deposit immediately, depending on your agreement with the auctioneer. You may even drive the vehicle on the same day, again depending on the terms.

Although auctioned cars come with no statutory warranty, what’s good about them is that you can be sure that each vehicle is free from any financial encumbrances. Thus you won’t have to worry about getting your car repossessed by any financial institution in the future. It’s a clear title for you to begin with. And within 48 hours after the sale, the auctioneer is required to hand you over the necessary documents, most importantly the PPSR Certificate on the Vehicle Identification Number.

Although the one major setback of auctioned cars is that they do not guarantee a flawless history of good performance and regular maintenance, you can always check the car history report. As what David Campbell, former NSW Government’s Minister for Transport and Roads, said, “There is a black market for purchasing written-off vehicles at auctions, then using stolen parts to rebirth and register the car, to be sold for a tidy profit.”

Such proliferation of black markets has eventually resulted in the legislation prohibiting the re-registration of cars considered as repairable write-offs. But nonetheless, we as buyers should always be in the safe side, not letting our guard down, always double-checking the facts before we even place our bid for that prized automobile.

 

Price Drops For Used Cars As Supply Keeps On Pouring

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used cars in melbourneThe current trend in the used car industry results to a major price drop due to the overflowing of supply.

Greater supply means low price on used wheels which will certainly bring better option for used car buyers. The continuous supply of used vehicle is the result of recovery in new vehicles sales and will keep on progressing for the next coming years.

Buyers could expect more reasonably priced used car down the road. The used car industry is now at the doors of fighting back from the hangover of recession. The automotive industry is among the firsts to recover from the said recession. Though they have flooded in the market today and will still continue to overflow used car lot owners have still managed to keep their dependability and efficiency.

Consumers have long waited for this used vehicles price drop and now that it has finally happening they can have better option to purchase and own their car. Aside from the fact that there is a high sale on new cars, the current pricing trend on used wheels also came from the rental car companies.

The high rate of used car supplies will provide shoppers better and wider option on car models. They will be able to give their money a fair value and at the same time get to drive the car that they wanted. Such phenomenon is in both ways beneficial to the used car dealers and with used car buyers. Dealers will no longer struggle to find a reasonably priced used car to display and sell on their lots while on the buyer’s side they’re able to stretch their money and give extra value to it.

With the continues rise on brand new car sales and the sharp rise in the number of late model off lease vehicle, the used car industry is facing a better future in the current market where there is a steep competition, used car can surely play a fair fight and get it to the top with all other industries. More people from different walks of life will have a greater chance of owning their cars because it turned out to be more affordable and more practical to buy. It just take a responsible buyer to end up with a good deal and get the perfect car that will meet all your requirements.

 

Amidst Internet, A Positive Outlook for Used-Car Market

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While dealers of brand new cars recently report bleaker profits, things have all been good for the used-car market. Thanks to the Internet. Anyone interested to purchase, say, a Toyota SUV can easily compare prices and get to know the breakdown of the vehicle’s cost online.

Such transparency, driven by the Internet, has been known to undermine the big players’ profits because private sellers can easily match prices and even market products that offer the same quality, minus the much heftier price tag set by the competition.

The same internet-driven transparency issues have been observed among car dealers — both in the new-car and used-car departments. But why do sellers of second hand vehicles see more profits while those offering flashy brand new ones languish?

It’s All About Smarter Dealership And Operations.

Higher Profits Despite Reduced Spread

NADA Used Car Guide analyst Larry Dixon said that since 2008, the difference between the wholesale prices paid by dealers and at auction and the retail price they offer has diminished by about $1000, bringing down the spread to just about $4,000. But does a narrowed spread necessarily mean lower profits?

Not necessarily

In fact, before the 2007-2008 recession started, gross profitability from used cars increased to about 13 percent, about two percent higher that it was before the recession. That the profits are up and the used-car market is doing good means that dealers are simply getting smarter.

To curb the growing threat of narrowed spread, used-vehicle dealers had to be more efficient in handling inventory and vehicle pricing. For example, selling the used car to buyers at prices close to what other dealers offer will leave little room for bigger discounts. This ensures greater profits, which otherwise could not have been achieved if buyers were allowed to haggle for more deals.

This move makes sense, now that price transparency, as a result of free information on the Internet, will show buyers the average price of a certain used car for sale. For example, a customer who buys a second-hand Toyota SUV may do so but could no longer demand for bigger discounts because he or she knows the average pricing online. Such smart strategy among dealers may seem very limiting, now that they can’t demand for higher price tags, but overall sales performance has been generally positive to date.

Another strategy to maximize profits making sure the second-hand car is sold within the first 20 days of purchase. Also, spending so much time for reconditioning repairs does not guarantee bigger sales. So, the pressure is on for dealers to keep the prices of used vehicles close to the market price, and at the same time market these cars to hasten the turnover period — from the time the vehicle is bought for resale until day it is finally sold to the new owner.

With these smart techniques in purchasing, handling and reselling used cars, Internet transparency can be a surprising ally, not a threat as many businesses perceive.

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JZ Motors

1100 Burwood Highway
Ferntree Gully3156 Victoria

PH: 03 9752 2799
Fax: 03 9752 2965

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