Clever car choices save thousands

THE average family can spend $22,000 a year on transport and the biggest expense is the family car.

But a little thought can save thousands every year.

When it comes to cars, it’s about both the purchase and the ongoing maintenance.

THE PURCHASE

Work out what you need from a car then write up a firm budget, including onroad costs. Research different makes and models to get a feel for cost and features.

HOT TIP If buying second hand, aim for the newest car with the lowest kms possible for your budget to save on servicing down the track.

PREPARE

Before inspecting a car, compile a list of questions to ask the seller.

Buying new? Ask about fuel economy, fixed price servicing and warranties.

Buying second hand? Check the car’s service log, ownership history and whether it’s been in a crash.

HOT TIP Don’t just take the seller’s word for it; check the car’s rego details with your state transport authority. Cross check the engine number against the car’s paperwork and ask for a recent roadworthy certificate.

BE A SMART BUYER

If buying from a dealer, never be afraid to negotiate; the headline price is for mugs. Make a reasonable offer, keep emotion out of it and walk away if you’re not getting what you want.

HOT TIP Watch out for added extras such as leather trimmings … a few hundred bucks may not seem much in the context of a car, but quickly adds up.

GET THE BEST LOAN

If you need finance to buy, don’t just go with whatever the dealer is offering.

Understand what else is out there; other lenders may be offering a better deal. HOT TIP Look for loans with low interest rates and shorter terms … even if the repayment seems higher, you’ll save on interest.

INSURANCE

You’ll need Compulsory Third Party (CTP) insurance, and if your car is new or valuable, comprehensive cover, to protect against damage. HOT TIP Good car security features, lockup parking and a good driving record can lower premiums.

RUNNING COSTS

Get rid of excess weight from the car (no more sports equipment in the boot) to cut fuel consumption. Open your windows instead of using air conditioning and drive smoothly to put less pressure on the engine and, eventually, your wallet.

SHARE THE DRIVING

Do colleagues or classmates live in your area? Sharing rides or kid pick-up can help keep costs in check.

DISCOUNT VOUCHERS

The big supermarket chains offer discount petrol vouchers for purchases over a certain amount. While it many only be 4-10 cents a litre, every bit helps.