Yes, the idea of purchasing a new car can be overwhelming, what we found is that once you know what to expect, the process usually becomes less stressful. We have collate together these five simple steps in buying a new car, summarising out all the necessary information to help you think through the car-buying process and get the greatest offer on your new car.
Laying Out the Steps in Getting the Best Deal on Your New Car
1. Understand exactly how much you can afford
Before you go ahead and purchase a new car, you should know exactly how much money you have to spend or save. You will be aware how much you should save or spend if you exactly know what car you want to purchase. If not, then you must know how calculate on how much you can afford to borrow on a new car loan.
You might use the 20/4/10 rule to calculate car loan affordability.
According to the 20/4/10 rule: You make a 20% down payment on the car you want to buy. The term of your car loan should not exceed of four years. You must only spend no more than 10% of your monthly income to balance life.
2. Get your car finance ready
Now you know how much you can spend, it’s time to compare car loans. And that’s where we come in! At Automotive Finance, we are full of dedicated brokers in helping you find the best car loan for your needs. By doing research to our panel of lenders, we can help you choose within a range of car loans that is suitable on your budget, making the process of finding a car loan much easier and simpler.
It’s also worth bearing in mind that many lenders now offer pre-approval on their car loans, so you can get preapproved for a certain amount before you even step foot in a dealership. Secure with your pre approval, you can head to the dealer knowing exactly how much you can spend, and then snap up the best deal when you find it.
3. Check your options
Car loan pre approval isn’t all you’ll need to prepare yourself with when you check out car dealerships. You must also do some research on the car you want to buy. Wandering into a dealer with no idea about your car of choice is almost an invitation to be taken for a ride and that’s not in a good way.
As you do with your research, consider how long the current model has been offered. Most manufacturers update their models every few years, so find out when the next update is due. If you want a bargain, you may find a great deal on an end-of-model runout sale. Alternatively, if you want the latest updates, you may want to wait until the new model is available.
TIP: As you compare cars, be sure to take into consideration factors such as each model’s ANCAP safety rating. Choosing a car with a higher rating should not only be safer to drive, it may also be cheaper to insure. Fuel consumption is another important factor to check, especially if you plan to use your car for everyday use.
4. Know what’s included
By carrying out research, you will also find out exactly what’s included on the model you’re interested in. Dealers often try to sway buyers with extras when selling new cars, but if you know what’s included as standard, you can keep a clear head while not being influenced by extras that you know come with the car anyway.
This may also put you in a better position to negotiate for further extras over and above what’s already included.
5. Know when to buy
You want to get the best deal offering in the maker? You need to know when to buy! If you can plan your car purchase, consider these best times to buy a car in Australia:
- The end of the calendar year – Most dealers want to clear out old stock at the end of the year to make way for new models in the new year, making it a great time to find a cheaper car.
- The new year – Similarly, January can be a great time to get a good deal, as dealers discount the cars they didn’t sell in December even further.
- The end of the financial year – EOFY sales in Australia are huge, so if you want to find a new car at a lower price, this could be the time to do it.
- The end of the month – If you’ve missed out on all of the above, you may still be able to get a good price on your new car by shopping at the end of the month to take advantage of dealers looking to hit end-of-month targets.
- On a Monday – According to reports from TrueCar, Monday is the best day to buy a car in Australia, with an average saving of 8.10% of the car’s MSRP. You will typically get the worst deal on a Saturday or Sunday, as this is when dealerships are busiest.
To further discuss, the ideal time to buy a car in Australia is determined by various aspects, including the kind of car you want, the availability of the car you want, the season you’re shopping in, and the discounts and offers that are available.
In general, the ideal time to buy a car is in the late summer or early fall, when dealerships are eager to clear out their stocks or inventories and provide the best cheap offers. Furthermore, scheduling your purchase to take advantage of end-of-financial-year sales and other special occasions may also save you money.
Finally, the greatest time to buy a car in Australia is when the perfect car is available at the appropriate price.
If you need auto financing in Sydney, contact Automotive Finance. We are proud to offer a variety of finance solutions to meet your specific financial needs. You should also do some research about the vehicle you wanted to purchase. Walking into a dealership with no notion what you want is virtually an invitation to be taken for a ride, and not in a good way.You should also do some research about the vehicle you intend to purchase. Walking into a dealership with no notion what you want is virtually an invitation to be taken for a ride, and not in a good way.