Buying a car is a serious investment. It’s one of the most expensive purchases you’ll ever make, so it's vital to get it right the first time around. Keep these tips in mind when you buy a new or used car:
Tip #1: Start by figuring out a realistic budget
Before anything else, you need to work out a budget. Figuring out what you can afford is the beginning of any successful car-buying journey. The car you choose should complement your lifestyle, not hinder it with expensive car payments you can’t afford.
Review your finances carefully. Consider your current expenses, debt, and income before settling on a price range. Aside from regular car payments, you should also take into account maintenance, insurance, stamp duty, registration, and fuel costs. Ideally, your monthly car expenses should not exceed 15% of your monthly income.
If you’re having trouble setting a budget, getting a pre-approved car loan could help. With a pre-approved car loan, you’ll know how much you could borrow from the lender. Apply for a pre-approved car loan with Aussie Car Loans!
Tip #2: Understand your car-related needs before shopping
Once you’ve set a budget, you need to choose a car that suits your needs best. This could be a challenge because of the plethora of car options available. The type of car you need will depend on how you’ll be using it. Narrow down your options by asking yourself what you need out of your vehicle.
Do you need an SUV that can fit the whole family? An AWD that can withstand any terrain when off-roading? Or perhaps, a sleek vehicle great for city driving? Having a checklist of must-haves can also help you figure out which car model is best for you.
Make a list of top makes and models you’d like to buy and pick from there. This helps streamline the car buying process, so you don’t spend too long searching for the perfect car.
Tip #3: Always do a car inspection for used cars
This is one of the most important tips for buying a used car. Car inspections are essential for used cars because you don’t know the exact condition that they are in. There could be underlying problems with the vehicle that even the dealership or private seller doesn’t know about.
Have a mechanic do a comprehensive car inspection, checking everything from the engine to the tyres, inside and out. The results of the inspection will tell you if there could be problems with certain parts or features. You should also look into the car’s service and maintenance history. If a car has missing maintenance or repair logs, that’s a cause for concern.
In addition to a car inspection, don’t forget to test drive the vehicle yourself. See how well the car handles on various roads by going on a few different routes. Don't just take it around the block for a quick spin. Drive it around areas you frequent to see how well it actually drives. Make sure to test all the features to make sure they’re in working order.
Tip #4: Don’t get influenced by fancy sales talk
Before you close a deal on your new car, the salesperson at the dealership usually comes in suggesting fancy new add-ons, tyre and body protection plans, or extended warranties. These may sound like a good deal at the time but usually, these extras aren’t something you need. The best car-buying advice is to just say no. Don’t be swayed by persistent and persuasive sales jargon. Whatever extra or add-on they offer, you could always buy later if you need it.
Avoid haggling at the dealerships altogether when you buy a new car online. Services like OnlineAuto can help you find the best deal on a new car without stepping into a dealership or talking to countless salespeople. They provide a stress-free, hassle-free way to purchase the perfect car for you.
Tip #5: Find a car loan with low rates and good features
The best way to buy a car is with the right financing. The ideal car loan is one with low interest rates, flexible terms, and great loan features. Every lender has their own car loan policies and rates. The key is finding one that works best for your financial situation.
Do your research before applying for a loan. Look at different lenders and see what type of car loans they offer. You could also speak to the lenders directly to ask about their car finance options. It may be time-consuming, but the effort is more than worth it in the long run.
For an easier time finding the perfect car loan, get in touch with Aussie Car Loans. As a car finance broker, we have an extensive network of lenders to help you find a car loan tailor-fit to your needs. Contact us today by calling 1300 889 669 or get a quick quote!
FAQ
Is it better to buy a new or used car?
It depends on what you’re looking for in a car. Buying a new car means getting the latest features, more options, and extended warranties. The downside of purchasing a new car is that they’re more expensive. Used cars are usually cheaper but they do come with wear and tear.
What to look out for when buying a used car?
When buying a used car, you should always watch out for obvious defects, incomplete service records or maintenance history, high mileage, and rust. Before buying a used car, have a professional conduct a full inspection so you know the actual condition of the vehicle.
How much should you spend on a car?
Ideally, your car payments should not exceed 15% of your monthly income. The 15% should include all car-related fees such as car loan repayments, insurance, maintenance, and fuel costs.
Is buying a used car from a dealership safe?
Generally, buying from a used car from dealerships offer more consumer protections compared to purchasing from a private seller. But of course, look into the dealership beforehand to ensure they’re a legitimate business.
When is the best time to buy a new car?
The best time to buy a new car is during the End of the Financial Year, the end of the calendar year, the end of the month, or before the release of a new model. During these times you can expect higher discounts, lower prices, and more freebies from dealerships.
Can you return a car if it has problems in Australia?
If you experience a minor manufacturing defect with a new car, you can ask the dealership or supplier to provide repairs, a replacement, or a refund. For major issues, you can get the car refunded or replaced. Check your warranties to see what your options are.
What is buying a car with finance?
Buying a car with finance means using a car loan to purchase your vehicle. You’ll borrow money from the lender to fund your car purchase. Once you’ve bought the car, you’ll pay back the lender the principal amount borrowed plus interest over a loan term.
How much is the average car payment in Australia?
According to the Australian Automobile Association (AAA), Australians living in a capital city spend $190.23 a week or $9,892 a year on their car loans.
