New year, new car? What to consider
If your car is leaking oil, sputtering about the road, and seems like it’ll fly apart when you hit 60, it’s definitely time to upgrade your car. If you have been thinking about buying a new car, the new year (and new financial year) are great times to venture out into the market. However, with rising prices and inflation still rampant, what type of vehicle – new, used, certified used, or demo – is best? What are some tips to get the best deal?
The premium – a new car
A new car is almost unbeatable when getting something that’s more reliable, fuel efficient, and safer than whatever you had before. New cars will have state-of-the-art safety features, fuel economy and other components, as well as being covered by manufacturer or statutory warranties. Of course, new cars are the most expensive option and depreciate as soon as you drive it away from the dealership. However, it will last longer than a used car, be easier (or sometimes free, at least for a while) to maintain, and be much easier to finance.
Used cars
Used cars, if you do your homework and nab a good deal, can be a great alternative to buying new. However, very old used vehicles may be in poor condition, which will increase your costs for fuel, maintenance, and repairs over the vehicle's lifetime. If you purchase from a private seller, you will be required to ask numerous inquiries, examine the documentation thoroughly, and consult the Personal Property Securities Register to determine whether the item is written off or has outstanding financing. You will need to do some more research and “tyre-kicking”, but you can drive away with a used vehicle at a good price, if you get expert advice.
Certified used cars
Certified used cars sit in a category between new and used cars. Certified used cars are manufacturer-refurbished, and safety checked ex-lease or ex-demo cars that are at least three years old. Unlike some used cars, they are sold with an extended manufacturer warranty. They're more dependable, have newer features, and are in great shape than other used cars. Though they cost more than a comparable used car, they are easier to finance than some used models.
Demonstrator (Demo) models
Ex-Demonstrator or Demo models may be even more attractive than certified used cars, as they’re no older than three months and have fewer than 5,000km on the clock. As it’s a demonstration car, it is already registered and most, if not all on-road costs are paid for. The drawbacks are that ex-demo models are limited to whatever the dealer has set aside for demonstration. Since the car has likely only been driven on short trips, it may have accumulated much more wear and tear than certified used models. You also “inherit” the remainder of the new car warranty from the date of purchase.
How to get a better deal
If you are in the market for a new car, ideally you want to approach dealers at the end of a financial or calendar year, as they are making way for newer models. If you can’t wait, going at the end of the month when salespeople need to make quota can help drive a hard bargain. Checking your credit and applying for a preapproved loan also gives you a firm price ceiling which your dealer or seller has to match or lose on the sale. Many online automotive finance brokers offer preapprovals giving you thirty to sixty days to find your perfect car – and best deal possible. So, make the most of the advantages!
Disclosure
This press release may contain forward-looking statements. Forward-looking statements describe future expectations, plans, results, or strategies (including product offerings, regulatory plans and business plans) and may change without notice. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements.
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