Buyer’s guide to SCORING A STEAL
Be wary of the pitfalls and potholes to avoid when buying a new car
DO BARGAIN
Visit a number of different car yards and ask each for their best deal. Some might give you a low interest rate when it comes to financing, but they won’t budge on the price of the car. Others will negotiate with you on price, but be inflexible on any trade-in.
Don’t be afraid to ask for optional extras to be thrown in – would you like a sunroof, upgraded safety features or the colour of your choice included?
TAKE A FRIEND
Drag along your partner – this is a family team decision after all.
And don’t be afraid to take the pram and car seats to the test drives. There’s no use getting the new family wagon home, only to discover the baby carriage doesn’t fit. Alternatively, take a friend. They can provide a detached assessment of the car and will not be easily wooed by over-zealous car dealers.
TEST-DRIVE COMPETITORS ON THE SAME DAY
Book test drives and make sure those for different cars occur back-to-back, because it’s really easy to forget the feel of a car.
You would never compare the smell of perfumes or try on shoes on different days. This also applies to cars.
CHECK ANCAP SAFETY RATINGS & WARRANTY
The Australasian New Car Assessment Program (ANCAP) is a car safety performance test that crash tests vehicles sold in Australia.
Vehicles are awarded an
ANCAP rating of zero to five stars, indicating the level of safety they provide in the event of a collision. To achieve the maximum five-star ANCAP safety rating, a car must achieve the highest standards in all tests and feature advanced
safety assist technologies. Go for a vehicle with five stars.
Similarly, do not ignore the vehicle’s warranty. This is usually buried in the fine print. Go for five years unlimited. Some manufacturers even offer seven years.
CROSSREFERENCE FINANCE OPTIONS
Car finance can be complicated. Lease payments can vary according to the term (four to five years is common), whether or not a deposit is paid, the balloon (the amount still owing at the end of the loan) and the prevailing interest rate (which is usually fixed). Before agreeing to dealer finance, always obtain a competitive quote from an independent broker.
CONSIDER DEPRECIATION
Contrary to popular opinion, the single biggest individual cost of car ownership is not the cost of petrol. Rather, it’s depreciation – almost all new vehicles start suffering the moment they’re driven off the dealer’s lot.
On average, cars depreciate by 15 per cent a year, but this figure can be a lot lower for popular models – and obviously a lot higher for cars that for whatever reason don’t have a great following.
To reduce depreciation, pick brands that are well-liked, and avoid garish paint colours like yellow, purple and bright green. While the so-called “Melbourne palette” of black, grey, silver and white might be boring, these hues help when it comes time to consider reselling your car.