Troubleshooter: Travelling far and wide to buy? Keep these things in mind

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As new vehicle retailers’ inventories start the slow climb back to pre-pandemic levels, and public health restrictions recede, auto shopping is starting to return to whatever normal is. And for a good percentage of buyers, that means comparing prices between retailers and doing a little car lot touring.

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If you’re hunting for a deal on a popular make and model, such as any pickup truck, don’t be surprised at pushback from sales reps if you make an offer below what they think market value should be. And there are also a few things to keep in mind when purchasing a new vehicle from a dealer nowhere near your home or place of work.

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While some vehicle owners never return to their factory dealership for anything, including retail maintenance, warranty repairs, or recalls, these people are definitely a minority. Carmakers don’t sock away an average of 10 per cent of their vehicle revenue for warranty repairs for nothing. So if you’re on the point of bypassing a local dealer to make a new-vehicle deal at a distant retailer, check into a few things first.

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Some dealerships will absolutely refuse to do any type of repairs, customer-pay or warranty. on vehicles they didn’t sell. They’re independent franchisees, and there’s nothing the factory execs can do about it. It’s wise to ask your neighbourhood store about this, as it may mean factoring in an extended drive for any dealer-only issues.

In-house benefits

Oil-change packages may not be transferrable. A popular push in many dealership finance offices is the prepaid maintenance plan. Many of these do offer real value when you compare their cost, versus paying the service department each time you need maintenance. Some are issued by the automaker, meaning they can be redeemed at any of its retailers, but some are in-house products and can only be used at the selling dealer. The same goes for any winter tire storage plans a retailer may throw into the deal.

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Looking for loopholes

Then there are “policy accounts,” which don’t exist anywhere but at the selling dealer. For every new and pre-owned vehicle a dealer sells, the store assumes it may have to pay or cover something the factory warranty doesn’t, in the name of customer satisfaction. If you ever pore through a new-vehicle warranty document, you can find dozens of exclusions and loopholes such as wear-and-tear items, or tires or glass damage, where you will be on the hook for the total costs. For example, a dealership may decide to pay for a tire replacement when it blew out due to a road hazard within a few days or weeks of purchase. On a regular basis, a selling dealer will cover all or part of these costs if the situation warrants. That goodwill doesn’t exist at a non-selling store.

Nothing is free

And if you’re thinking that loaner cars will cover your needs when travelling to a distant retailer for service, consider that, like the infamous free lunch, “free” loaners almost always come with a price tag. Add all these things up and calculate the cost difference, not the price difference, between your nearby retailer and a distant one. You might find it better to shop closer to home.