Buying a New Car: How to Make Your Money Go Further

Buying a new car is an expensive venture. Typically, it’ll be the second-biggest purchase most people will make in their lifetime, behind buying or building a house. Still, Australians remain a nation of car lovers. According to the ABS, consumers are willing to splurge on a brand-new car – even in light of record low wages growth. The stats, which cover up until January this year, put us in the top 10 motor vehicle loving nations in the world.

It’s a decision that involves a lot of money. And one you're likely stuck with for the next few years, so it pays to choose and invest wisely. Research shows that one in five car buyers regret their decision within the first minute of purchasing a new car too. So, weighing up your budget and lifestyle needs and purchasing with your head – not your heart – is essential.  If you want to buy a new car without breaking the bank (or settling for a second-hand ride), here are a few tips to make your money go further:  

Buy When the Market is Right

Timing is everything when it comes purchasing a big-ticket item. You wouldn’t buy a house if the market wasn’t in your favour, so don’t rush out to buy a new car just at any given time. Especially if you want to cut down on costs. Buying at the right time can turn the price knob down and help save you rushing into just any decision.

June is typically the best time to buy, with many of the top car brands wanting to close their financial books on a high, savings can be huge. End of financial year is always good to score a significant saving. But beware, attractive savings also bring in buyer competition, so you may have to review your negotiating tactics.

Other times when the car buying market is right can include the end of the calendar year too. November and December are when many car dealerships are clearing out the end of year stock, which brings with it big incentives to buy. If you know exactly what you want, waiting for the release of the newer model is always a good trick. Like at the end of the year, you’ll be able to grab a bargain when the current-year model goes on sale. 

Invest in Novated Leasing

Novated leasing is one of the best ways to afford a brand-new car, offering some serious potential to save money. The process involves owning a car under the novated lease contract – a contract between you, your employer and the financing company. Payments are made via salary packaging, which brings its own set of valuable pre-tax benefits on top.

Consumers can benefit from novated leasing in multiple ways. It’s a cost-effective way to find a vehicle that fits best with your lifestyle needs, but the savings and access to better car prices that come with it make it a viable option for many too. With the right novated lease, there’s a level of convenience and practicality that new car owners love too. You can also save money when it comes to fuel, vehicle services and maintenance; all of which can be covered or discounted through the novated lease to ensure your new ride stays in top shape.

Get Preapproved for a Loan

Bringing your own financing (BOYF) can help get you pre-approved for a loan before you purchase your new car.  It’s a good way to determine what you can afford before setting foot in the car yard and helps to set your figures. Once you have been approved, you’re in a better position to find a car that suits your budget and fits with the monthly payments.

To save same and hassle, let our team at easifleet do a credit check. This is a good reality check to see whether or not you’re likely to be approved for a loan. Know what figures you’re working with before you go to the car yard. You can’t begin to look at price ranges without a solid budget in mind.  

Ask the Salesperson for Their Price

Asking the right questions is crucial to buying a car that fits your needs and budget. It’s also good for negotiation. Remember - everything in sales is negotiable so get your haggling skills on to get the best price for your car. Instead of putting your offer on the table first, ask the salesperson for their price. When the salesperson asks for your offer, you want to avoid a figure that could potentially be higher than theirs. Instead, ask them for their best price!

This can give you some valuable negotiating power. If their offer matches yours, make a counter-offer anyway. You could end up knocking something off the price and at worst, you achieve the offer you initially wanted.

Keep a Business Mindset

Don’t get distracted by additional shiny features and glittery glam – stick to what you need and only what’s within your budget. Buying a new car should be a business decision, not an emotional decision so use your head to choose over your heart. Salespeople can be pushy, so if they’re trying to get you to test drive a car that’s out of your budget or has too many of the bells and whistles you don’t need – be firm or walk away.

Negotiate a Service or Maintenance Deal

Don’t be afraid to ask for extras to negotiate a better deal. If you can’t get the purchase price down, asking for a service discount can be valuable. Negotiate a set period of time – for example, 12 months for discounted services and maintenance on the purchased vehicle.

You can also negotiate an extended warranty. Every new car comes with a warranty to repair or replace parts. Most cover three years or a set mileage, whichever comes first, but it’s possible to extend it for an extra year or two. Free window tints, upholstery protection, anti-theft alarms and other additional features can also be negotiated as part of the deal to save money too.

Consider EasiBuy

If dealing directly with the sales team isn’t for you, consider investing in a service like EasiBuy. EasiBuy is a fleet buying service where fleet companies deal directly with the sales team to arrange the best possible deal for you. Through such services, you get access to big discounts all year around. And the time and hassle of negotiating are eliminated.

With a few smart negotiating tips and ways to make your money go further, it’s more than possible to buy a new car without breaking the bank.  

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