Planning to buy a new car?

August 08, 2017
Kathryn Coleman

We have a number of tips for you to consider when buying a car.

These will help make the process of buying a car as easy as possible.

Tip 1: Review your needs

Determine what type of vehicle you need.  It’s all very well to see yourself driving the newest luxury car but for most of us this want will not match your budget.  The practical step to take is to assess your needs and identify which features are required to suit your situation. Large, medium or small car?  Do you have a big family to transport in your vehicle?  Are you looking at a vehicle that is efficient, even battery powered. 

Tip 2: Define your budget

Once you know what features and size your new car needs to be, it’s time to set the budget.  In some cases the budget may influence the type of car or extras you can include.  If you’re requiring finance how much can you afford to spend on car repayments each month.  Of course the costs associated with car ownership continue after purchase so remember to factor in cost of servicing and insurance.  Dealerships will often include roadside assistance and several years of warranty.

Tip 3: New or used?

There many pros and cons to consider when considering New or Used.  A new car will offer extended warranty, latest fuel efficiency and safety standards.  However we al know that a new vehicle loses value from the minute you drive it off the showroom floor.
It is possible to source an quality ex demo or used vehicle with low kilometeres.  This may represent better value for money and suit your budget.  Buying a used car may come with the risk of break down and repair costs.

Tip 4: Finance or cash?

How will you pay for your vehicle. Will you pay cash for the car or do you need to take out a loan? If you require a loan to finance the purchase of your vehicle, you'll have to decide whether you want to source the loan through a lender or the car dealership. It’s important to keep in mind that most car dealerships make their money through the financing side of the business. As such, the loan they give you might not be the best rate or the right product for your needs. Your Mortgage Choice broker has access to a wide choice of lenders and can source you the right car loan at the right price. <b/p>

Tip 5: Test drive

This will be the favourite part of the process, particularly if you are a car lover.  It is also a very important step.  Just like buying a house, photos on the internet make it look like the perfect vehicle and it may tick all the boxes on paper.  Getting behind the wheel and taking the car for a test drive could be a different story.  You need to be comfortable driving the vehicle and make sure it fits your needs.  When buying a used vehicle, you should view the vehicle’s history, service logbook, and a list of its past repairs.  You can also pay to arrange a vehicle inspection by a mechanic or roadside service.

Tip 6: Closing the Deal

Approach the conversation calmly. If you’re aggressive, the salesperson will be less likely to give you what you want. Trust your instinct and don’t settle for anything less than what you need. If you get the feeling that you could get a better deal elsewhere, walk away. You’ve put all this energy and research into this decision, why would you want to rush it when it counts? If you’re buying a new vehicle, don’t be afraid to let the dealership know you’re shopping around. Be sceptical if you hear ‘I can only offer this price today’ as this is a commonly used pressure tactic. The pressure should go both ways, they need your business as much as you need a vehicle.

If you prefer to avoid the negotiating stage Mortgage Choice offer a unique car buying service where we do all of the haggling on your behalf.  You just need to know the make and model of the car you wish to purchase, and then we will negotiate with hundreds of car dealerships across the country to secure you the best deal.  Delivery to your door with a full tank of fuel. What could be easier than that?

Remember, if you need help with financing or would just like more information about the car buying process, speak to Mortgage Choice in Wynnyum today!

Tags: Mortgage ChoiceMortgage Broker

Posted in: Car loans & leasing

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