Nobody’s perfect, and everyone’s made mistakes when it comes to buying a new car – be it in terms of the financing, the wrong make, or falling for added extras which don’t really add anything to the purchase.
We spoke to some Australian readers who had made a few key mistakes, but had learned enough to admit it, and were only too willing to offer their stories as examples of what to be avoided.
Do your homework!
There’s so much information on the Internet that there’s really no excuse for not getting fully versed on the available facts about the cars, about their features, and about pricing and financing. Walking into a dealership without knowing what it is you want, what you are willing to pay, and what the dealer’s competitors are offering… you’re just asking for trouble. Emily from Adelaide did just that earlier this year. “I had driven a new car that my brother had hired over Christmas,” Emily said. “I like the feel of it, I liked the way it handled and I especially liked the colour.”
But Emily didn’t think about how repayments would impact her monthly bottom line. Instead of researching her options, she simply went along with what the car dealer was suggesting – a financing package with locked in monthly payments over five years. Given the amount Emily drives her car, and the income level she is currently at, a novated lease would have been a better option. But to Emily, the details were more confusing than the thrill of taking what was, at the time, the easiest way out the showroom door.
“I didn’t know how much I would be saving if I took on a novated lease,” she said. “I’ll have to do better research next time.”
Everything old is new again
That new car smell? It can be replicated with a spray. With that in mind, you may want to consider buying a pre-owned vehicle instead of a brand, spanking new one. A number of manufacturers and dealers have certified pre-owned programs, meaning that the days of a shady dealer in a bad jacket and cigar are truly a thing of the past.
Michael from Sydney was unaware of the fact that many car manufacturers have these days improved the standards for used cars.
“It turns out,” Michael reflected, “that most used car dealers, the good ones at least, often include detailed vehicle service logs and an extension of the car’s warranty from when it was new.”
Michael also found out the hard way that car loans are not the sole domain of new cars. “Financing for used cars looks like it’s not only available, but seemingly cheaper than it has been before. Again, this is something I’d like to have known before lashing out on the new beast.”
We saw Michael’s car. It is very nice.
With a wide variety of finance options available for would-be car purchasers, it may surprise you to learn that getting a car loan often makes more fiscal sense than a buying the car with cash. Saving your pennies may have made sense when you were a student trying to buy your first car, but your finances, and the world of financing itself is a lot more complicated now than it used to be. It is complex, and it can be confusing. But this is not something that you need to worry about too much.
Getting the best deal for an Australian buying themselves a car is not something they need to worry about as much when they have themselves a partner who is in it to get them the best deal. Positive Lending Solutions are such a partner. With more than 30 years’ experience in finance, the team have the skills, experience and capacity to seek out and find you the best possible deal for your next car loan – one that not only serves your hip pocket the best, but could potentially improve the state of your finances through securing a good novated lease agreement.
The team can secure you fast results, securing your loan and saving you up to 17% on car finance, for any kind of purchase.