How to pay less for the car you want

Font Size:

If you are looking to buy a new car, you are certainly getting towards the right time of year to be on the market.

As the end of the year approaches, car dealers are desperate to clear out stock, knowing that all those 2017 models will become last year’s stock on 1 January, 2018.

Whether you wait to pick up those old models in the new year, or snatch up a bargain beforehand, this is one of the prime times for buying a new car.

Other tips that can save you money when buying a car include:

Purchasing the display model
The biggest vehicle-related expense isn’t fuel, or maintenance or servicing costs: it’s depreciation. The minute you drive your car from the lot and the odometer flicks from zero and starts counting the kilometres, you have just seen significant value drop from your car. You can use that factor to your advantage by purchasing the test drive vehicle from the lot. It won’t exactly be a brand new car, but the cost saving can be enormous.

Sell your old car privately
Car dealers will attempt to convince you to trade-in your old vehicle. This may be quicker and easier, but more often than not, you will be able to get a much higher price for your car if you attempt to sell it privately. If you do not want to endure the hassle of selling your own car, don’t mention the fact you are looking for a trade-in when you are initially negotiating the price for the new car. Otherwise, you will not be able to tell if you are getting a good deal.

Don’t fall for financing deals
You will always secure a better deal if you shop around for your own finance rather than falling for a dealer’s financing options. Some of the financing options available exist purely to obscure the real cost of buying your new car. Look closely at the total cost over the term of the loan including fees, rather than focusing on the interest rate or monthly repayment amount.

Start low and walk away
Do not be afraid of going too low with your initial offer. If you show that you want to buy today and are prepared to walk away, the car dealer will do everything possible to secure your signature. If the negotiations reach a sticking point, simply stand up, shake the agent’s hand and walk off. If they let you go, you have most likely gone in too low, but chances are they will come in with something approaching their best offer before you reach the door.

Don’t pay for unnecessary extras
Dealer-extended warranties, window tinting, paint protecting and rust-proofing: All of these things are largely unnecessary. New cars don’t rust and the paint doesn’t really lose its shine these days, either. The dealer-extended warranties usually tie you in to manufacturer servicing deals that are extremely expensive and inconvenient, compared to getting your car serviced by your local mechanic. Make sure you only pay for the extras you need.

What are your tips for buying a new car? Are you a gun negotiator or nervous when dealing with car salespeople?

Join YourLifeChoices today
and get this free eBook!

Join
By joining YourLifeChoices you consent that you have read and agree to our Terms & Conditions and Privacy Policy

RELATED LINKS

Three of the best large cars under $30k

Here are some of the best large car buys for the budget conscious shopper.

Computers vs. Cars

For those who feel only true affection for the way computers have enhanced our lives.

Post-war cars make a comeback in the popularity stakes

Being asset-wise from classic cars to coins and fine art.

Written by Ben

3 Comments

Total Comments: 3
  1. 0
    0

    window tinting is good

  2. 0
    0

    The best way to save money on a car is ..buy second hand and don’t get a loan, pay cash. The biggest costs are depreciation and bank interest.

  3. 0
    0

    It’s no doubt that negotiating with a new car salesperson can be stressful, paricularly when salespeople are match ready and most buyers are simply not. My best advise is to engage a new car buyers’ agent to find your chosen car at the best possible price. I’ve done this twice, got a great deal on both without any effort on my part, vehicles were delivered into my driveway and the bonus extra, no pressure applied to buy any of those over priced and over rated options….winning!


FACEBOOK COMMENTS



SPONSORED LINKS

continue reading

Entertainment

Friday Funnies: The barista and the spoon

Enjoy these caffeinated jokes from Readers Digest while you sip your morning coffee. They may even improve the best part...

COVID-19

What chickens can tell us about living with COVID-19

Professor Amir Hadjinoormohammadi As the world grapples with rolling out various vaccines for the SARS-CoV-2 virus that causes COVID-19, there...

COVID-19

Vaccinations, transmission, contact tracing: COVID questions answered

What do we know about COVID-19? Given how new the disease is, how much has been learnt in the past...

Mental Health

What is agoraphobia and how is it treated?

Popping to the shops, picking up a coffee on the way to work, queuing up for entry to a gallery...

Food

Benefits of kefir and what to look out for

Forget kale and nut butter: fermented foods are the one big health trend we'll all be spooning into our diet...

Age Pension

CPI figures point to an increase in the Age Pension in March

After pensioners were denied an Age Pension increase in September last year, due to a rare case of deflation in...

Diseases

MND breakthrough offers hope damaged nerve cells can be repaired

There is hope of a breakthrough in treating motor neurone disease (MND) after Edinburgh researchers found a way to repair...

Health

Avoid these common mistakes people make with bleach

Bleach is one of the most effective and least expensive disinfectants around, but it pays to remember it's not an...

LOADING MORE ARTICLE...