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New Car buying tips
- New car buyers
can choose the colour of their car, the trim
colour, the engine, transmission and other options
and accessories, but used car buyers have to take
what's available.
- New car buyers
have the reassuring backup of a new car warranty
so they know that if anything goes wrong they
won't be up for a big repair bill. Anyone buying
from a used care dealer will also have a warranty,
but it won't be for as long as the new car
warranty. Private buyers don't have any warranty.
Negotiating with
Dealers
It's a buyers
market which means you can bargain with dealers for
a better deal, but you need to be prepared for the
battle.
- Do some homework
on market values before you go shopping so you
know the value of the car you're buying and the
value of your trade-in. That way you'll be better
placed to barter with the dealer.
- Have your
finance arranged before you go shopping, but don't
tell the dealer. Dealers will often cut the price
of a car believing they'll make money on the
finance.
- Don't settle on
the first car you inspect. Visit a number of
dealers and compare deals before making a
commitment.
- Look for a
dealer well stocked with the car you want and
he'll be more prepared to deal.
- Shop towards the
end of the month when dealers are looking to get
their quotas up.
Financing your
wheels
Few
of us are able to hand over a wad of cash to pay for
our car, we all need finance for the purchase.
- Before you start
work out how much you afford to pay, and how much
you can afford to repay.
- Don't be tempted
to use your credit card to pay for your car, the
interest rate on credit cards is generally very
high.
- Shop around to
save money.
- Finance through
dealers is the most expensive, dealers are
on-selling the finance to you and they are making
a profit on the deal, so cut out the middle man
and go straight to the source of the finance.
- Banks offer
finance at a cheaper rate than the dealers, but
approval can take time.
- Independent
finance companies specialising in car finance
often have the lowest interest rates, and some
offer fast approvals with an on-line service.
Where to Buy
- Buying from a
dealer gives you the security of a warranty. By
law dealers have to give you a warranty which
gives you some recourse if something goes wrong
with the car later.
- Dealers also
have to guarantee ownership of the vehicle, that
there is no outstanding finance on it which might
complicate matters later. They also have to
guarantee the odometer reading.
- It's possible to
buy cars cheaper at auction, but there are risks.
There's little chance to check a car over, there's
no chance to drive it, so you take a risk on its
condition. The auction environment is not one for
the faint hearted, it's fast moving with lots of
little nods, winks and gestures for those in the
know. Spend the time to visit auctions to become
familiar with them before attempting to join in
the action. It's a good idea to take along someone
with mechanical knowledge to help you assess the
cars before the auction starts.
- Buying privately
can be a way of saving money, but it can be risky
for the unwary. There is no comeback with a
private purchase, once you've driven away you're
on your own. To search for private party cars on
carsguide.com.au click here.
Before you buy a
car ask yourself:
- What kind of
driving do you do?
- Off road? Around
town?
- What features
matter to you?
- Air-con? Safety?
Power?
- What's your
price range?
- Where will you
be parking?
- Do you have a
garage or only on-street parking?
- What kind of
insurance can you afford?
New car
companies
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