An extensive survey by international consumer watchdog Which? revealed 31% of drivers regret buying their latest car. The top reasons for remorse after buying a new car were –
- It doesn’t fit my lifestyle
- It cost more than I expected
- It was faulty and needed repair
Buying a new or used car in Singapore is enough to send anyone into a sweat. Don’t rush into it. Car dealers can be extremely persuasive – before you know it you’ve bought a car, extended warranty and insurance.
Avoid falling into the trap of the 31% – do you research. Here are five car dealer questions you should ask before you buy.
1. Would A Similar Model Cost Less To Insure?
Sometimes similar models have very different insurance rates. Compare rates for your top three choices before you commit.
2. What’s The Warranty Coverage?
Your new car comes with a standard warranty from the manufacturer. This covers repairs to factory-installed parts for a specified time. There’s often an additional warranty that covers the engine, plus transmission and other moving parts. Typically, this warranty is longer. However, the contract has fine print and often means a commitment to scheduled maintenance and accurate service records — otherwise, it may be invalid.
Extended warranties can be costly, as many car buyers don’t use them and / or pay more than they should for repairs. Also, be sure to ask about repairs that may be excluded. Extended warranties can be extremely complicated – be sure you know what you’re signing up for.
You must also find out if you have to pay for the repairs up front – and are you obliged to pay a small deductible?
3. Who Stands Behind The Warranty?
Car dealerships may offer third-party warranties backed by companies with variable track records. If you decide to purchase an extended warranty, you should check it is backed by the car manufacturer, not the car dealer or a third-party. Normally, manufacturer-backed warranties can be used at any dealership. With a third-party warranty this may not be the case.
4. What If I Find A Better Insurance Deal Elsewhere?
It’s not likely that a car dealer will allow you to shop around for more affordable, flexible car insurance while you are in the showroom. Don’t succumb to buyer’s pressure on the day. You are not technically obliged to buy car insurance from your car dealer. The confident new car buyer will always shop around to get the best price.
The best way of finding out if an extended warranty, or car insurance policy, is best for you is to read customer reviews. Pay specific attention to the claims process – is it quick and easy to understand? Will you be assigned a claims expert, or passed around? Are you offered options that fit your lifestyle or is the policy one-size? Can you choose how you will pay?
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Choose the plan you want. Pay the way you want. You are insured!