Bought new car, question about rego and payment method

illumination on 29/03/2014 - 22:30

Hi Ozbargainers,

With reference to this initial topic that I posted when I needed assistance in looking for a car…

I just thought I'd give a bit of an update and also check on a couple of things.

I ended up getting 2013 Nissan Pulsar ST Sedan (with just under 40,000km) today for $15000. I ended up going for a loan and I'm most likely going with Qantas Credit Union.

Overall I think I made a fairly good purchase. The test drive felt good and it seems to be in great condition with a few small scratches here and there which is normal but nothing too obvious.

It still has the balance of the manufacturer's warranty, which I've been told is until March 2016.

What I'd like to check is what I've been told in relation to rego.

The car's rego expired 2 weeks ago, and because I need to purchase new rego, the dealer is selling me 3 months of rego for $445 + 40 for yellow plates (there was an option of white plates for $99). They also sell 6 months for about $750ish. After this expires, I then go and get my own rego. He then said, how about this, I'll give you a 'renewal' of the old rego starting 3 months from that date rather than from today, and that way I can forego the $40 plates fee.

So basically I save $40 by getting the 3 months rego renewed from 2 weeks ago. Sounds reasonable and I went for it.

Then I thought, hang on, why can't I just go get the rego myself? So I asked if I could just choose not to get rego and go get 12 months of rego by myself since it's cheaper. Supposedly I can't, and reasons provided were something like "because you are financing, we have to have it under rego when we sell it to you. It's also because we legally have possession of the car right now so we must sell it to you with rego. If you were paying cash it wouldn't be a problem."

I'm confused. Why does me paying cash/financing play a part in how they must sell the car to me with or without rego? Can anyone shed some light? Is there actually a legal reason I can't get the rego myself?

I'm also currently in the process of getting my loan setup and everything. I'm considering paying for about $5000 on a credit card and doing a balance transfer on a credit card with a promotional rate for a fixed period of time. $5000 because I must borrow a minimum of $10000 from Qantas Credit Union. Anyone tried this before?

Other questions I have, if anyone has experiences to share:

  • How much does servicing/maintenance cost for this car? I've been told it will be about $200 per service, done either once per year or 10,000km whichever comes first
  • On the note of servicing, another dealer I spoke to told me that you will get different prices depending on the location of the mechanic. e.g. you'll be quoted much higher prices closer to the city compared to out west (Blacktown, Penrith, Parramatta) for the exact same service. Any opinions?
  • I have considered getting an inspector to check out the car after I get it to get any issues fixed up within the 3 months statutory warranty which the dealers must provide (which I assume I may also be able to get fixed up with manufacturer's warranty). Is this a good idea?
  • What is the resale value of this car like?
  • I could not find any USB port… a 2013 car with no USB?!

Thanks ozbargainers!

Automotive

Comments

  • Geewhizz on 30/03/2014 - 07:20
    +1

    I personally think he's having a go at you. 40 000 km is a fair bit of mileage for the $3000 drop in price from brand new (it's available for $18k drive away, new,) and he has the hide to be trying to hit you up for rego on top of it.

    • illumination on 30/03/2014 - 11:16
      +1

      It was an ex fleet vehicle and did a lot of highway driving from what I've been told.
      Where did you see 18k drive away brand new? I'm finding 23k drive away..

      A price drop of 8k (or 7k if you factor in rego and stamp duty) I feel is a good drop, even with 40,000km racked up.

      My main concern is the rego.. Just don't know whether what he's telling me is true in regards to getting own rego.

  • WalterPPK on 30/03/2014 - 11:25
    +1

    I'd never borrow more than 50% of the purchase price of a car. My last few cars I bought outright without having to borrow a cent, and I'm glad I did, because owning any car is expensive enough to begin with. My current everyday driver is a 2005 Corolla which cost just $4000 including rego, on-roads and third party. Uses under 6L/100km combined, looks and drives like brand new. Our family car is a 2000 Magna, again bought outright for just $6000. A gem of a car, easy to drive and comfortable. My stress level is much less too - last month wifey backed into a post and dinged it, and it didn't bother me at all, because I know it'll be no hassle for me to get someone to straighten it and respray it.

    On the other hand, a $15,000 personal loan will, even at the lowest conceivable interest rates, end up costing you $5000 in interest before you've paid it off. It'll cost twice as much to insure. And when you finally do pay it off, your 1-year-old car will now be a 6-year-old car.

    My advice: if you have $10,000 of spare cash to put towards a car, then you can allow yourself the luxury of buying a $20,000 car. Otherwise, you're just buying a liability.

    • illumination on 30/03/2014 - 17:33

      I didn't intend to get a loan, but I now plan to get a loan because this will give me the option to keep the cash to myself and look for any potential investment opportunities for the duration of the loan over the next few years. If I buy it outright, I won't have this option. Commencing a loan (with Qantas CU) means I have the option to pay it off early if I want to, and that way I will only pay interest for the duration that my loan is present.

      P.S. I actually reckon a car is a liability whether you're buying a car worth $2000 or $20000… it's almost always a depreciating asset so I don't see how it can't be a liability.

      Out of curiosity, how long ago did you buy the 2005 Corolla? Sounds like a good deal you got there.

  • Wokstar on 30/03/2014 - 19:02
    +1

    Just under 40,000km. That's not a new car, that's a used car.

  • [Deactivated] on 30/03/2014 - 23:45

    Just keep in mind whatever alternative investment you have in mind has to beat 7-8% tax free in order for you to be better off compared to not taking this loan out in the first place.

    Also cheaper cars aren't necessarily bargains - consider resale and critically servicing costs. An extra few k for ex demo / last year build plate on run out now will save you at least that in the future especially if you're planning to hold onto it for a while. Don't believe for a second just because nissan website, carsales dealer ads say 23k new that you can't do better than that - my last few purchases have been new and always with free on roads and small discount to boot.

    Fleet cars can be a risky proposition; yes they're reasonably new, but they're also driven carelessly and revved up by people who know they're not driving them for the long haul.

    Not sure about the legalities of dealers selling car with rego, but if I had a dealer marking up rego compared to what it'd cost me directly I'd run from the deal fast

Login or Join to leave a comment
Login Join