What to look out for when buying a car this festive?

Posted on Wednesday, November 21, 2018 - 14:15

Buying a car at the end of the year comes with many benefits such as end of year specials and bargains. There is also the fact that you could use your end of year bonus to help boost your deposit for a car. Knowing a few savvy tips on how to navigate your way around buying a car this festive season can help you drive away with a great deal. Here is what you need to know.

Pay attention to the fine print

Dealerships are on the rampage of offering enticing deals to car buyers for their new wheels. However, the devil is in the details and you need to find him. Whether it is a slashed price sale or financing that comes with a 0% interest rate, it is vital that you check if there are hidden fees and if the 0% interest rate will revert to a higher cash rate. Check to see if there are any additional add-ons’ that could throw your budget off. Remember to always compare deals before settling on them, and if there is room to negotiate use your power to do so.

Research, research, research

Although there are many genuine sales and specials out there that could potentially save you thousands of dollars, there are also dodgy deals that can drain thousands of dollars out of you. According to Roy Morgan, only 51% of Australians do preliminary research on a car. The only way to see if you are getting your money’s worth is to put in the research. Never purchase a vehicle out of pressure. Take your time to compare deals and see whether you will be able to afford the car in the long run.

Always remember that if you cannot find the best deal you can wait until the end of the financial year where car prices are significantly reduced.

Look beyond the price tag

When purchasing a car this festive remember to look beyond the price tag that sits on the cars shiny new window. Carefully consider the implications of taking out finance for the car in the form of a loan, if you will be able to meet the repayments, the cost of insurance, maintenance, repairs, and add-ons such as extended warranties. Such factors can significantly alter the cost of a car, so think twice before driving the vehicle off the parking lot.

Choose your finance options wisely

Not many Aussies are able to afford their vehicles by paying the full amount of cash upfront. This is why 1 in 5 Australians attach a car loan to their car. However, with so many lenders and dealers on the market that offer financing, it can get confusing as to which option will best suit you. It is important that you ask questions around the finance option you choose. Comparison sites have made it possible to compare loans from various lenders, making it easier to choose. If you are considering getting financing from a dealer, it is important that you weigh the pros and cons as this tends to come with a higher interest rate.

Try to avoid purchasing a vehicle under pressure as this will give you time to weigh whether it is suitable for your lifestyle and your finances. In the end, its practicalities will overweigh its aesthetics.

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