7 things to know before you buy a new car

Buying a new car – no matter the make or model – will be one of the largest financial decisions you make this year. And before you head to the dealership and trade in your old model for the latest and greatest – it’s time to take a deep breath and make sure you’re aware of all the aspects of buying a new car.

Whether it’s financing, insurance, or simply choosing the right dealership, it’s good to consider all your options and know what to look out for. Here are 7 things to know before you get too comfy behind the wheel.

1. Know what you’re looking for

Before you spend big, it’s a good idea to ensure you’re choosing the right car for your needs. Now, unless you’re Elon Musk, your budget is probably going to play a big role in making this decision. But it’s not the only consideration you should be looking into.

Many cars these days come with multiple trim levels offering a multitude of different engine types, features and optional extras. Matching up your needs with the right trim level can be a bit of a labyrinth if you don’t know what’s what.

That’s why research is everything. Walking into new car sales Perth armed with as much knowledge will give you a better understanding of which car is best suited to your lifestyle.

2. Get ready for depreciation

It’s the new car buyer’s curse – but it’s an inevitable one that you’ll have to be aware of when buying new.

New cars depreciate in value faster than used cars and if you want to sell again shortly afterwards – you’ve got to be prepared to make a significant loss on your investment. It’s therefore very important to be sure of the long term viability of your new car.

Will this new car be worth the investment 5, 6 or even 10 years from now? These are questions you’ve got to ask yourself before diving in. It’s good to look at the trends – we’re moving away from diesel motors, even petrol engines are on the way out with major carmakers pledging to significantly reduce fossil-fuel-powered engines by 2030.

Keeping ahead of these trends can also help you make an informed decision at the checkout.

3. Be prepared to compromise on features

No one wants to hear the word compromise. But trading features and optional extras like a sunroof, or dual climate control is the name of the game when it comes to matching your budget to what’s on offer. Before you start speaking to any seller, you should understand which extras you need, want and what ones you’re willing to forgo as you search for the right deal.

4. Know all the expenses

Having a clear plan on how you will finance your car is always a good starting point, but there are many other expenses – both upfront and ongoing – that should feature in your decision making. Remember, if you’re taking out a car loan that uses your car as security against the loan, you will need to show that you’ve got comprehensive car insurance as well as third party insurance before your car loan is approved.

Here are some of the potential expenses you should be aware of:

GST
Stamp duty
Dealer delivery
Registration costs
Insurance
Roadside assistance package

5. Don’t overestimate the value of your trade-in

This is a common mistake that could catch you off guard when you decide to trade in your old clunker. The fact is your much-loved car might not be worth as much as you expected. The best way to balance out your expectations is to first get a valuation from as many sources as possible – as this can help you make an informed decision down the line.

That being said, with the price of used cars high – you may find yourself lucky if you get a good deal on the private market. Just don’t expect a big trade-in deal at any dealership.

6. Not all dealerships are made equal

Buying a new car is often best done at your local dealership. Dealerships offer unique access to financing options and often have trustworthy servicing options available with parts and accessories that are suited to your vehicle make.

But not all dealerships are made equal.

You’ll want to choose based on price, but also your location. Be on the lookout for dealerships that listen to your needs and don’t push you around. Make sure you’re feeling very comfortable with your choices before you settle.

7. There is a good time to buy

And that may not be now. As with any new toy – the temptation is always there to get it as soon as possible. However, delayed gratification can be sweet if you wait until the right moment to pounce. Even if your car is brand new, you can always expect there to be deals floating around – especially towards the end of the financial year as dealerships offload stock. Be sure to keep an eye out to take advantage of these new car deals when they come.