Buying a brand new car is an exciting event in most people’s lives, but it’s important to remain calm and adopt a practical approach when visiting dealers’ showrooms or you could end up spending far more than you anticipated. Follow the 5 tips below to make sure the vehicle you buy is the most suitable for your needs and financial circumstances.
1. How Much Can You Borrow?
The very first thing you should do before you even start to look at what’s available in your area, is calculate how much you can afford to borrow in order to finance your purchase. It’s quite easy to find competitive car loans no matter where you live in Australia, but you don’t want to take on more debt than you can reasonably hope to repay. Add all your existing monthly expenses together and remember to include the additional costs you’ll need to meet in order to keep your new car on the road. Then make sure the repayments for the amount you propose to borrow will not leave you short of cash at the end of the month. You can make use of our handy car loan repayment calculator for this.
2. Read Sales Terms & Conditions Carefully.
When you visit local dealers, make sure you read all the terms and conditions on their sale contracts carefully. Although they have to comply with advertising guidelines as laid down by the Australian Competition and Consumer Commission, it’s still easy to get caught out by hidden costs if you’re not careful. Establish exactly how much it will cost to get the car on the road rather than just looking at the list price and assuming it includes everything you need.
3. Inspect The Actual Vehicle You’re Buying.
If you find a make and model that meets all your needs and the dealer in question is willing to sell it for a reasonable price, ask to see the actual car you’re buying before signing a contract. If it has to be delivered from another part of the country, insist on inserting a cancellation clause in the contract that enables you to cancel the deal without penalty in the event that the vehicle is not delivered by an agreed date.
4. Don’t Be Impulsive. You Can Get A Better Deal.
Don’t make an impulse buy at the first showroom you visit. The market for new cars is very competitive so it’s well worth visiting two or three dealers, even if you find exactly what you want at the first one.
5. Shop Near The End Of The Month & Save!
Consider waiting until near the end of the month before you go shopping for a new vehicle. Salespeople have monthly quotas they need to meet in order to qualify for bonuses and they are often willing to offer more generous discounts towards the end of the month in order to make their quota.
The above suggestions will help you avoid making any major mistakes, but you should also spend some time researching different makes and models online before you get started to ensure whatever you buy is the most practical solution to your transportation needs.