We sign contracts in all areas of our lives. Cars tend to be one of the bigger purchases in which we have to sign contracts for.
Here are some key tips for contract review that you can take into consideration to make the car buying experience better.
How long does the whole buying process take and what can I expect with a contract?
So the buying process – post negotiation depends on a couple of things:
First is to see whether the car is in stock at the dealership or not. If not, ordering the car from the factory can take up to a couple of months.
This leads on to the formal offer, after you’ve negotiated, you may usually have to pay a deposit of a couple hundred dollars, then you will get a contract to sign with the dealer.
The contract covers things like delivery date, any add-ons that you’ve bought, the conditions in which the car will be delivered and cooling off period.
These are some of the main items on the contract along with a few other details
Based on that, the buying process will generally take anywhere between a week up to a couple of months depending mainly on whether the dealership has the car onsite with the specs that you are looking for.
Checking what’s included in the contract
Some things to be aware of when reviewing your offer:
a) The Delivery Fee: This cost is designed to cover the cost of dealerships getting the car prepared for delivery to the customer. It is more often than not negotiable.
b) Delivery Date: Ensure the delivery date you and the dealer agree on is listed clearly on the contract. Never allow the delivery date to be left blank, it gives you no leg to stand on when expediting the delivery of the car.
c) Price check on extras: Check that the prices offered for factory-fitted extras are reasonable. You more than likely will be able to arrange a better deal yourself for after-market products such as window tinting or tow bars.
After accepting the offer, how long will it take before I can drive the car?
If you’ve accepted the offer on your new car, even if the car is available at the dealership or their storage area, you’d still need to wait a couple of days.
This is where the dealership will follow the processes that the manufacturer has asked them to do.
It includes going through the car and getting the servicing department to do a pre-delivery inspection on the car. This makes sure that everything is how it should be. Ensuring that there aren’t any dents or dints where you wouldn’t expect them to be.
This in our experience can take a couple of days. Even if they did have the car in stock, you’d still be waiting a few days before you can drive the car.
What is the cooling off period and is it important for me?
This is something that all new car buyers should be aware of.
The cooling off period is basically a couple of days you have after you’ve signed the contract. It allows you to void it in case you change your mind. You can get most of your money back without being locked in.
This generally is 3 business days that doesn’t include the weekends.
It must be done by writing to your dealer for formality purposes.
For new cars, you can lose up to 2% of the value of the car that will be handed to the dealer.
One thing worth noting – buying a new car under a company name voids the cooling off period.
Still thinking about buying a new car? Here are our Top Tips to Remember at the Dealerships to ensure you feel confident before walking in to negotiate.
