If you’re thinking about purchasing a car in 2017, it’s important to set aside some time to plan for the purchase. After home purchases, a car is typically the second most expensive purchase anyone makes. It’s not a quick decision either – usually taking days, if not weeks, to decide on the right vehicle.
Follow the steps below in order to ensure you consider all bases, get the best deal for financing and enjoy your ride for years to come.
First things first – you need to decide on a budget. Having a budget will help guide you through the next few steps and ensure that you’re not financially in too deep with your options. When deciding on your budget, you should consider the actual cost of the vehicle, as well as the ongoing expenses, such as insurance, registration, services and fuel.
Some lenders will pre-approve finance at this stage to help you know what budget you have to work with. However, lending rates often change depending on whether you are buying new or used so you may need to have that information for your lender before they agree to rates and repayment details.
New or Used Car
Once you do have a budget in mind, you can decide whether you want to purchase a new or used vehicle. Deciding between a new or used car can be difficult, which is why it’s important to weigh up the pros and cons of both.
Something to consider at this stage is that lenders will often have more attractive repayment rates on new cars. Over the term of a loan, spending a little bit more on a new vehicle can be worthwhile with benefits like more warranty and capped price servicing.
Whether you’re on the hunt for one of the best new cars in 2017, a ‘new’ demo model from last year, or want to hunt for a bargain used car, you’ll need to decide on the car model and year you are hoping to purchase. There are often consumer reviews on vehicles too, which might help you make a decision.
Find Your Vehicle
Once you’ve got your sights set on a particular car model, you can start fine tuning your search. A good place to get an idea of what is available is on CarSales, which is Australia’s largest online car sales network. Read the descriptions thoroughly and consider the kilometres on the odometer to see how much usage the car has. The driving and service history are also important though – a few long distance trips in a well looked after vehicle can be much less of an issue than a car with low km’s but poor maintenance. Having a test drive and getting a trusted mechanic to inspect vehicles is a crucial step in any used car purchase.
If you’re looking for a brand new car, you could go straight to dealerships and seek out the best deal in person. Many people don’t realise the price of new cars are not always fixed. So you can negotiate on a new car purchase, especially if you are looking into optional extras. If you’re time poor or unsure of where to start, a car broker can help you by contacting and negotiating with dealers on your behalf. The best part about this is that there is no cost to you as the customer, as the car broker takes commission from the dealer. Even with the commission factored into the car price, using an experienced broker will often result in a purchase price that is lower than an individual would be able to negotiate. You can read about how a car broker service works if you’re interested in finding out more about this handy option.
So you’ve found the car you would like to purchase, but what about the finances? Financing directly through a dealer may be tempting but if you have time to shop around, it can pay off to check out your options.
Contacting and researching a number of different banks, credit unions and financial loan organisations can be a very time consuming and often a confusing process. If you’re looking for someone to do this on your behalf, you could contact a loan broker who is able to sought through the lending options available and provide a range of finance options specifically catered to your needs and often at far better rates than the mainstream lenders .
Lock It In
If you’re happy with your option, you should make a move on financing straight away and lock in your purchase. Good deals on new and used vehicles don’t often last long, so you want to make sure you lock it in while you have the chance.
The process of purchasing a car can be very time demanding. However, it is crucial to do your research and thorough inspections to ensure you find a car you will be happy driving. If you would like further information, or expert assistance in finding, inspecting and negotiating the purchase of a car, contact Car Search Brokers on 1300 650 890.