5 Things To Consider Before Buying A New Car

Buying a new car can be one of the most important purchases you make after buying a home. With more options available than ever before, there is a lot to consider before making your purchase. So what should you think about before you make the leap? Here are five essential things to consider during the process.

New, Used or Demo?

Australians bought just over one million new cars in 2019. And it’s estimated that over 3 million used cars are sold in Australia each year. Due to the high cost of new cars in Australia, used cars are a popular choice for many people.

But it’s important to consider that there are drawbacks to buying a used car, despite the lower price tag. It can be difficult to learn the full history of a used vehicle, so it’s not always clear how reliable they will be.

While new cars are more expensive, they usually come with warranties to protect you against breakdowns or other issues. The cost of maintenance on a new car is likely to be less than a used car and you will benefit from extra peace of mind.

Another alternative is to buy a nearly new car. These cars may have been used purely for demonstration in dealerships or as a company car. They generally have low mileage and are cheaper than buying a car brand new.

Fuel Type

The type of fuel you choose can have long term implications on your car’s running costs. Petrol is the most common fossil fuel.

While petrol costs in Australia are lower than in some other parts of the world, electric vehicles offer a lower-cost alternative. The cost of charging an electric vehicle works out to be 60-90% cheaper than fuel costs.

While Diesel can still boast impressive MPG, there is always the risk of tax hikes or an outright ban due to high carbon emissions. At the same time, while EV technology is coming on in leaps and bounds, it’s still not always ideal for driving Australia’s vast road network due to range issues. You will have to spend more to purchase an electric vehicle upfront.

How Will You Pay?

In Australia about 90% of car sales are made through a financing agreement, meaning buyers make monthly repayments until the loan is paid off. Whether you choose to finance your car will depend on your financial circumstances.

If you’re going to finance your vehicle, it’s important to consider your options rather than just accepting the dealership finance offered. It’s worth speaking to a finance broker to find out how much you can borrow and get pre-approved on your loan before heading to the dealership.

Purchasing your car with cash will help you save money in the long run. However, buying in cash can limit the type and quality of the car you can afford, meaning you might have to buy a less reliable or less efficient car.

Before buying your car, learn how to get the best deal on a new car. This will save you money, whether you choose to pay cash or finance.

Speak to a Credit One broker to find the best rate you can get on car finance.

Think Ahead

If all goes well, buying a car can be a long term investment, but that means you will need to think ahead.

If you’re planning on having kids in the near future or if you could be moving from the city to a regional location, your requirements are going to change. If you intend to hold onto your car for multiple years, take some time to consider any major lifestyle changes that could occur in the coming years.

It may be worth buying a car that’s slightly more adaptable for your needs just in case, rather than locking yourself into something that won’t meet your needs in the future.

If you expect to be doing a lot of travelling in the near future or if you’re expecting new additions to your family, you will need a vehicle that allows plenty of space. The space and versatility of SUV vehicles has been a key driver of their increasing popularity in the past decade.

What Are The Maintenance Costs?

Car maintenance costs can be a significant expense to consider in the long term and something that needs to be factored in when making your purchase.

Servicing and repair costs on imported or rare cars can be expensive, as fewer parts are available in Australia for these cars. Similarly, newer cars tend to have fewer maintenance issues in the long run. However, all these issues can be addressed by taking out warranties or insurance, which can be a good idea if you’re not sure how reliable your new car is.

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The decision on which car to buy shouldn’t be taken lightly. Taking the time to select the right car can save you a lot of headaches later on. Use the ideas above the guide your decision making and ensure you make a choice you will be happy with. Visit our complete Car Buyers Guide for more tips on buying your next car.

If you need to find the best deals and make your money go further when it comes to buying your next car visit cartopia.com.au for the latest and greatest deals and offers.