For some people any pre-owned car, no matter how well maintained, is a deal-breaker. They want to enjoy that new car smell when they sit behind the steering wheel. They want to enjoy the benefits of modern technology. Or they simply feel that a brand new car is a treat they deserve. If you are one of those people, this list of tips for buying a new car is for you.
We believe that making an informed choice is essential, because you need to keep and use the car for at least 5 – 6 years before you decide to resell it or trade it for a newer model.
Anything below that, and you are losing money, because cars depreciate their value very quickly during the first years.
Simple Tips for Buying a New Car
Where do you start when you want to buy a new car? Here are our expert suggestions:
Consider Your Financing Options
There are several ways of financing a car:
- You pay for it in cash
- You get a loan from your bank
- You choose the dealer’s financing plan.
Each of these options has pros and cons. But it is usually more affordable to rely on a dealer’s offer.
They have the interest to sell their stock of vehicles and clear the showroom floor for newer models. Thus, shopping for a new car at the end of the month or the end of the year may actually get you a great deal.
The dealership may be willing to slash off various fees and throw in a few extra features for free.
Do Not Skimp on Safety Features
This is one of the key tips for buying a new car: when it comes to saving money, safety is not negotiable. Forget about the chrome rims and extra-bass sound system, but do not give up any essential safety feature, such as:
- Adaptive cruise control
- Automatic parking
- Forward collision warning
- Backup camera
- Automatic emergency braking.
These features can save yours and your family’s life at some point. After all, you want a new car for its modern technology devices. Think beyond comfort and entertainment – start with safety.
Consider the Insurance Premium
You will need Compulsory Third Party (CTP) insurance if you own and drive a car in all states and territories of Australia. The monthly premium is calculated depending on various factors, including vehicle type. Thus, a person who owns a SUV will pay a higher premium than a person who owns a mini class vehicle.
When you determine the overall budget for buying a car, remember that car ownership involves ongoing costs – insurance, maintenance, repairs, etc. Never buy the most expensive car you barely afford, because its ongoing costs may become crippling for your family budget.
Do Not Get the Latest Model
A new car does not have to be the latest model launched by the manufacturer. This is one of the most important tips for buying a new car if you are on a budget. Apart from a few design changes (the so-called facelifts) and extra gadgets, the latest model is not very different from last year’s model.
What is different is the price – in the range of thousands of AUD. You don’t need to pay all this extra money for a few vanity upgrades. Moreover, the last year’s model may be significantly discounted by the dealership to make room for the latest model.
Be Careful about Extra Packages Paid in Instalments
“You can have the latest touchscreen control system for only $80 per month bundled in the financing plan and payable within 10 months.”
This sounds like a great deal…until you do the math. When you look at the actual amount of money you have to pay for that extra feature, it does not seem very affordable anymore.
Forget the Hassle – Come to The Vehicle Broker!
Even with these tips for buying a new car, you will still lose valuable time and may not even get the best possible deal. If you want the best new car for your needs and budget at the shortest possible price, come to The Vehicle Broker. We will scout for your ideal car and call you within days to come and take it for a test drive. And we won’t charge you extra for our efforts!