Deal or no deal

New guidelines aim to make the cost of buying a car more transparent. ANDREW HEASLEY reports. Everyone loves a bargain but nobody likes to be taken for a sucker. Yet its hard not to feel youve been taken for one if youve been lured into a car yard or showroom by a low price, only to be disappointed to find the cars "just been sold" or costs thousands of dollars more to match the one pictured, or theres the old "plus, plus, plus..." to put the car on the road. Buying a TV or washing machine is a fairly straightforward process, with advertised prices largely matching the outofpocket expense, but as car buyers will know, when it comes to four wheels its not that simple. Theres frequently a disparity between what you think youre up for and what you pay when you sign the contract. Sometimes the financial surprises come long after signing. Beyond a cars recommended retail price (including the Federal Governments GST amount), theres a long list of extra costs such as the State Governments stamp duty, the dealers "delivery fees", and the onroad costs of VicRoads registration and the Transport Accident Commissions compulsory thirdparty insurance. Add in complex financing and leasing arrangements, generally a mix of upfront, recurring and end payments, encompassed in obfuscating legalese, and it can be a quagmire for the unwary. Advertisement: Story continues below Meantime, car ads vigorously compete for consumers attentions, some seeking to lure buyers with discounted prices, some with allin driveaway prices, others with stunning headline prices, but with the devil in the asterisked fine print. Its an issue that the countrys competition watchdog, the Australian Competition and Consumer Commission, began reviewing two years ago, taking in the views of car makers, dealers, marketeers and consumer advocacy groups to frame new guidelines governing how new and usedcar prices are advertised. The guidelines, finalised in November but just launched publicly last week, are aimed at making the costs in car buying more apparent to Rosetta Stone consumers and eradicating misleading and deceptive conduct by the car industry. "Always in advertising, the representation to the public of price a true and honest representation is very important," said ACCC commissioner John Martin, who headed the review. The result, the Automotive Advertising Guidelines price advertising in the motor vehicle industry, sets rules governing the way prices are presented. Mr Martin warns that a headline prices asterisk and fine print may not be enough to satisfy the new guidelines. In the guidelines sights are the way prices are represented in advertisements, disclaimers, discounts including "below cost" claims, photos used in ads, socalled "bait advertising" and cash rebates. Be warned, though: even with advertisements that comply with the new code, theres still plenty of guesswork involved for conscientious consumers who want to compare deals or establish what it will cost in full to drive out of the showroom let alone figure how much negotiating room they have on their side. The guidelines arent law, the ACCC says. Rather, theyre plain English recommendations based on the commissions interpretations of court rulings of what actions constitute misleading or deceptive conduct under the Trade Practices Act. Theyve been boiled down to how car prices in ads should be presented to consumers so as to be clear, unambiguous and accurate. The advertised prices must state the total price required to take delivery of the vehicle. That includes "all mandatory components" of the price that can be quantified; that is, stamp duty and dealer delivery costs. What doesnt have to be specified, the ACCC says, are the "onroad costs": registration and compulsory third party insurance. "The ACCC does not see ... (on road costs) ... as mandatory components," it says. Its a somewhat curious stance after all, how many people buy a car without intending to register it or drive it on the road?