Avoid These 5 Car Buying Pitfalls

  • Posted 10 Nov

Avoid These 5 Car Buying Pitfalls

If you’re looking to buy a new car, the deal that you think you’re getting might not be all it’s cracked up to be.

Dealerships don’t always provide you with the correct information, and sales are definitely seasonal, with summer being the biggest time that people tend to buy cars.

If you want to ensure you get the best deal, following our tips below.


5 Car Buying Pitfalls to Avoid

#1: Trade-In’s

While you might think that trading in your used car is going to grab you a discount, it can actually increase the price of your new car, with a recent study in the United States (completed by the Journal of Industrial Economics) showing that on average, if you have a trade-in, you’re going to pay $990 more on average.

The smarter way is to sell your old car first and then hit the dealership for your new car, keeping the money you earn from the sale to put towards the new car. You’ll receive a much better deal, potentially saving 10-25%.

#2: Car Model Year

Towards the end of the year is the best time to buy a new car, as the year comes to a close, most dealerships will be having sales on the models that are current for the year. They need to make way for the new cars coming in for the following year, so you can capitalise on this, as those current models will have depreciated by the end of the year.

Look to shop around August/September for some great deals.

#3: Natural Disasters

If you’re looking to purchase a used car, then make sure you complete your due diligence and make sure that the vehicle hasn’t been damaged by flooding or hail storms. And if it has, and you don’t mind, make sure you’re getting a hefty discount.

Get your local mechanic to check it out and then you can negotiate further with the seller.

#4: Finance

There are a lot of great car finance deals available, however, it pays to read the fine print and the financing terms.

If you’re happy to have this car for the next 5-6 years, then a loan that is over 72 months is probably not a bad deal. However, if you’re not planning to keep a car that long, then a loan over this term is going to cost you dollars in the long run.

Make sure you know what you’re getting into before you sign on the dotted line.

#5: Costs

Just because the car you’re looking at is a great deal, doesn’t mean that it’s going to never cost you money ever again. Certain makes and models might be cheaper to purchase, but maintenance costs are much higher.

Make sure you factor in the costs of maintaining your vehicle, including insurance. Failure to do so can end up costing you more than you were willing to spend long term.

Need help buying your next car? Let the team at Australian Credit and Finance help you out. Our car buying experts can get you into the right car within a few days. Contact us today.

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