It’s nearly clearance sale time at car yards across Australia, as car dealerships try to clear last year’s stock. A vehicle may have only been built a few months ago, but as far as the dealer is concerned it’s now a year old.
The good news is you can capitalise on their eagerness to sell, and that makes the start of the 2017 a great time to find a genuinely sharp price for your new car!
But, to snap up a great car deal in the New Year, you need to be prepared. Here are our steps to help you get ready for the New Year car sales and ensure a smooth ride towards owning your new car.
As with all big investments, you need to do your research before you even consider getting behind the wheel for a test drive.
Start by thinking about the make and model you would like. Consider what your plans might be for the next year or so. Will you have another child? Do you need a certain car for your line of work? It’s also worthwhile considering how you will use the car. Do you need good fuel consumption? Will you take it off road?
There are many factors that can influence you towards a certain make or model – car insurance costs, resale value, warranty and more. Being informed can make the process of test drives and getting your finances in place a lot easier and quicker, as you don’t waste time of cars you know don’t suit your needs.
There are loads of resources out there that can tell you about your ideal car. Why don’t you check out the manufacturers’ website, online reviews, or reliability surveys?
MAKE PLANS FOR YOUR OLD WHEELS
What you decide to do with your old car is important when we consider how you are going to finance your new car. If you are relying on the funds from the sale or trade-in of your old car, you need to decide on this before we can help you arrange the finance of your new purchase.
Whilst trade-ins are convenient and generally very straight forward, you don’t always get as good a rate as you might should you go down the private sale path. Either way, knowing how much you have to play with from your old car will help get your new car finance in place.
GET YOUR FINANCE SORTED
In most instances, you are better off arranging your own finance through a broker, rather than going through the car dealer. Often car dealers will offer you “amazing deals” on the day that may end up costing you more in the long run, so it pays to have your buying power sorted before you head to the car yard. Plus, having your finance pre-approved also gives you a solid bargaining position, should you need it!
There are loads of different ways you can finance a new car. You can:
- Get a car loan: This is a common, straight forward option that’s great for most people.
- Take out a lease: A lease differs to a car loan in that the lender retains actual ownership of the car.
- Use the equity in your home: If you own your home, you could consider refinancing your home loan to use some of your equity to pay cash for a car. Or you could use your redraw facility if you have been overpaying.
- Get a chattel mortgage: If you have a company, business partnership or are a sole trader, you can use a chattel mortgage to buy a vehicle provided it is primarily used for business purposes.
We can work with you to determine the option that is most suitable for you, then we’ll do all the legwork to get your finances sorted – so you are ready for the test drive!
TEST DRIVE BEFORE YOU BUY
Once you have your preferred make and model in mind, and you know how much you can afford to spend on the car, you can go ahead and start testing them out.
It’s always a good idea to take someone with you for a second opinion, and if possible, for you choose the test route (rather than the usual one the car salesperson uses). Take your time, test out the various features of the car, and use the opportunity to ask any questions you may have.
CHECK THE PRICE AND INCLUSIONS
Whilst it may sound great, look great and drive well – it always pays to shop around. Why not take a look at the same car at a few different dealerships?
It is hard, but try not to get sucked into those ‘one day only specials’ at the car yard, as usually you can get a similar special on another day once you are more informed.
Car dealerships are required to quote in full. Make sure you are being quoted for everything – registration, fees, stamp duty, etc. It’s also worth being aware of any ‘extras’. This can include leather seats, tinted windows, extended warranties, etc. If these are not part of the standard model – they will cost you more!
AND THEN YOU ARE DONE, NEARLY!
Congratulations, you are a happy owner of a new car. Once you have found the right car, don’t feel pressured to sign anything until you are 100% happy. Check all the paper work, and make sure all the details are correct, to your expectations, and complete. We can help you with this if needed, just give us a call. Finally, before you drive your car out of the yard make sure you have car insurance – imagine having a bingle on the way home from the lot!
If you’re planning on buying a car, talk with us about which option will be most beneficial to your financial circumstances. Just give us a call, we’ll be happy to talk you through all of the car financing options available for you.
FINANCE FOCUS | DECEMBER 2016
The information provided in this page is general in nature and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information you should consider the appropriateness of the information with regard to your objectives, financial situation and needs. You should seek independent advice from your financial adviser before making any decisions.
AUSTRALIAN MORTGAGE AND FINANCIAL ADVISERS (AMAFA)
Phone: 07 3378 2056
Fax: 07 3378 2069