- Posted 03 Oct
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Financing a new car can be quite challenging. If you’ve managed to save up enough to afford an upgrade, you should take the next steps very carefully.
As you probably already know, investing in a car, be it new or second hand, is no minor expense. If you accidentally end up with the wrong car, a ‘lemon’, you will have to deal with the long-term effects of your mistake.
Ensure you don’t make the mistake that many people make and buy the first car you find. Become a successful car buyer by following the tips below.
10 Tips for Buying the Right Car
- Make a list of things you need from your car. You should do this before you even begin looking for a car. The brand new luxury car at the dealership might be tempting, but is that what you really need? What kind of car you should drive depends on what you do. Your profession, hobbies, and family situation should dictate your choice of car. Making a list of all the things you’ll need your car to be able to do will be a great aid in finding the perfect car for you.
- Used or new? Whether you’re looking for something new or used, you should decide between the two so that you’re not lost in a sea of choices and so you don’t get led down the wrong path by a dealer.
- Do your homework. Use the Internet and classifieds in your local newspapers to do some research. If you’ve already got your mind set on a car, find out the market price of the car to avoid spending too much. Read user reviews and professional criticisms of different cars to get an idea of what you should expect to pay for them and whether they will meet your long-term needs.
- Set a budget. This will also narrow down your options and help you pick easily. Find out what you can afford, set a budget and stick to it.
- Plan it out. Car finance can often take a toll on your earnings, if you haven’t planned properly. Do you have enough deposit for taking out a car loan? How will you pay back the interest? It’s good to plan these things out before you start looking at cars.
- Make sure the car finance doesn’t threaten your financial security in the future. This follows directly from the last point. Make sure the money you’re spending on your car doesn’t threaten your financial stability or the future of your family. No car is worth putting yourself in financial hardship.
- Choose the right dealer. If your dealer doesn’t offer information or doesn’t respond to your queries quickly, that’s a red flag. Don’t buy from a dealer who doesn’t cooperate with you fully. There are many car dealers in Australia who can find the right car for you, so you don’t have to settle for the first one that you like.
- Narrow down your choices. Once you’ve found the right dealer and found a lot of cars that are within your budget, shortlist your choices. Compare all the cars and see what works best for you.
- Take out the car for a spin. Test-driving the car before you buy it is a must. Drive around for at least 30 minutes and check the interior, as well as the engine and other essentials so you don’t buy a car that will make you spend more in maintenance and repair costs.
- Pick carefully. Be picky. Like we said before, buying a car is a big deal. Don’t settle for a car that seems off, go with your instinct and only choose the one that seems just right. Make sure you’ve ticked off all the points above before making your choice and don’t forget to always read the fine print of any paperwork provided to you.
Do you need help to finance the purchase of your next car? Our car loan experts are eager to assist you. Contact us today to let us help you in choosing the right finance for you car.