Dying to buy a new car but don’t know where to start? There are a few simple steps you can follow to ensure you walk away with your dream car.
Identify your vehicle needs
Writing down a list of features you’d like in a vehicle can be a great first step. Once you know exactly what you’re looking for, you can narrow down the list of cars you’d like to test drive.
When identifying these needs, it’s important to consider whether your desired vehicle will still be practical should your personal and financial circumstances change.
Before purchasing a car, it’s important to visit a variety of dealerships. This will not only provide a range of vehicle options, but it’ll also give you a chance to take advantage of the specials each car dealership may be offering. Taking photos and writing notes on the specific features of each car you’re interested in will also help narrow down your selection.
Alternatively, if you know what you are looking for, and aren’t keen on pounding the pavement in search of your dream car, your Mortgage Choice broker can help. They can search a national network of car dealers to get the best deal, then have your new car delivered to your door. They can even help you with the trade-in of your old vehicle.
Define your monetary limits
Before buying a car, you’ll need to work out how much you can spend, and how much you’ll need to borrow. Your Mortgage Choice broker can help give you an idea of the maximum amount you can spend on a vehicle.
It's important when establishing a set amount that you stick to it. It can be easy to get caught up in the excitement of buying a car and ultimately spend beyond your means – this will lead to additional financial pressures for the term of your car loan.
Prepare and regularly update a budget
Creating a budget and sticking to it is an integral step towards securing your dream car. Creating a realistic budget will also give you an accurate idea of how much you can afford to spend per month on bills, maintenance and the like. Updating your budget will also help you identify areas in which you overspend and areas where you can save money.
Research your car loan options
When researching a car loan, there are a couple of options to consider. To ensure you’re securing the lowest rate available on your car loan, it pays to research what rates are on offer. Researching available rates will also help you decide how you‘d like to pay off your car loan each month. For example, whether you would like to make small monthly repayments and a balloon payment at the end or alternatively work towards minimising your monthly repayments.
If researching your loan options seems like a daunting task, your Mortgage Choice broker can help do the leg work for you, as well as advise which payment plan might best suit your needs. Call us today using the phone number at the top of your screen.