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5 Tips To Consider When Buying A New Or Used Car

How Much Do We Spend on Cars?

Experts say that buying a car is the second biggest purchase a person makes after purchasing a home to live in.  The average Australian changes cars every 10 years and spends about $3,161 on fuel and rego and $1,000 on repairs.  When you add it all up and think about it, it’s a lot of money.  Here are a few things to think about before you buy your next car.

What can you afford to spend?

This is where reality meets what you desire.  If you haven’t already, do a household budget and realistically look if you’re able to save the money to buy a car without needing finance. On the other hand, if you need car finance, how much can you afford on monthly repayments?  Are you able to trade your current car in or sell it to lower the amount of finance you may require?  The answers to these questions will help you work out if you can (or should) buy a brand new or used vehicle.

Running Costs

In addition to a car’s purchase price, be sure to consider the cost of servicing and parts.

How much per year or month do you want to spend on maintaining a car?  Are you happy to pay higher repair costs that typically go with purchasing a European or older car, or do you want a car that’s cheaper to repair?  A newer car typically comes with fixed price servicing.

Lifespan and Needs

Take an honest look at how long you anticipate needing your next car.  Will the car you’re looking at service your current and future needs, or are you planning to upgrade in 5 years? Are you planning to start a family?  Are you dreaming of 8-seater FWD but live in the inner city where parking spaces are typically small and narrow?  Try and match what you want with what you practically need.

Drive Green (?)

Are you concerned about your environmental footprint?  Have you considered or researched the cost of running an electric car versus a standard car?  Although electric cars are still considerably more expensive to buy than fuel-run cars, the price of charging an electric car can be cheaper than the cost of a petrol.  Also, the cost of servicing an electric vehicle versus a petrol run car is far less frequent with sometimes years between servicing.  There are additional benefits like better finance deals on buying low emission or Green-Vehicles.

Dealer Finance

If you’re buying a car through a dealer, you’ll typically be offered dealer finance.  While it can be convenient at the time of purchase, it’s not always the wisest choice!  It’s a good idea to look at what other car finance options are available via your broker.

As a Finance Broker we will Act in your best interests, helping you structure a car loan that will suit your budget and needs to come for years to come.  Also, if your time-poor, you can utilise our car buying service which will help you find your dream car without the high-pressure sales or even stepping into a car yard!  Ask us how?

Hopefully, the above tips will help you work out what car options are best for you.

Contact us anytime, we’re here to help.

Written by Jason Pestano