Are you in the market to buy a spanking-new vehicle? If so, great, you’re in the right place.
Whether it’s your first time in the ringer or not, buying a new car entails a lot of pre-planning, research, and financial investment for it to work out favourably on your end.
Considering the price of a car downpayment, buying a car is no small feat. You want to ensure that you’re making the right decisions to secure a vehicle that will last you for a long time. You also want to balance its purchase with the rest of your financial obligations to maintain your financial stability.
If you’re unsure about the key factors to consider before buying a car, or simply need a refresher, then this article will outline seven important things to bear in mind before signing your new car deal.
Let’s get started!
1. Price and Budget
It’s no surprise that you need money to secure a vehicle—and lots of it. The median price of a proper vehicle in Australia ranges upwards of $20,000 AUD, and it only grows in price with bigger and more luxurious car models.
As such, it’s important that you round up all your cash streams and assess whether it can realistically handle the downpayment and monthly payments of your chosen vehicle. Besides that, throwing car-related expenses into the mix, namely the registration, stamp duty, and insurance costs.
If you find yourself unable to sustain your current way of living with a car purchase, then you may have to reconsider your top car choice or delay car ownership altogether. That said, don’t simply buy a car for the sake of owning one if it doesn’t fit your criteria. You can end up losing out on the end with its deteriorating value and reduced practical use.
If you can tightly work a car purchase into your budget, then be sure to abide by strict budgeting tips to ensure that you won’t financially struggle during the term. This also helps you work towards a savings goal if you’re still in the process of earning enough money to get a car.
2. Your Car Type
Another consideration you should make is the type of car you’re planning to get. Don’t buy a car for the sake of owning a new one. It should serve some practical use in your life or your business’s needs.
Consider your needs and set of circumstances before making a selection. Do you drive your car mostly in cities or cross-country? Are you planning to use it to haul cargo or to carry your future family? Do you like the innovative and eco-friendly nature of electric vehicles over gas cars?
Depending on your answer, you can narrow down your options and pick from a range of cars that fit your exact needs. Vehicles come in a wide range of types and styles, so it’s important to consider the entire breadth of options at your disposal and pick the one that resonates with you and your lifestyle the most.
After all, the car you’re buying is the one you’ll maintain until you decide to sell it. So be very selective and be sure to balance out both practical use and personal preference—all while remaining within budget.
3. Payment Terms
Most prospecting car owners don’t possess the capital to buy a car upfront. Instead, they typically take out a loan and pay an incremental amount each month until the car is fully paid at the end of the term.
This loan essentially includes the lump-sum cost of the car. It then requires the borrower to pay an agreed-upon interest rate over a pre-determined period. Failure to pay can result in penalties and fees on the borrower—so be sure that you have the capacity to stay on top of these debt obligations before picking it.
Most banks and lending companies offer a car financing option for approved borrowers. Getting approved for a loan requires you to have a good credit score and an upstanding financial background overall. Car dealerships also offer a dealer financing option that makes it more convenient for car buyers to pay their loan arrangement.
In any case, it’s important to evaluate your own cash flow and preferred payment method before proceeding with a car purchase. Besides the aforementioned financing options, you can also consider paying for your car via a goods loan. Click here to learn more about this financing option.
4. Fuel Efficiency
Another crucial factor to consider when purchasing a vehicle is its fuel efficiency. One of the largest, if not the largest, expenses you’ll have to shoulder monthly is fuel. This is particularly the case for people opting to buy gas-powered vehicles.
Gas prices can be expensive the more mileage you plan to drive in your car, breaking into the four-digit mark annually. To keep costs low, it’s a good idea to pick a car that’s fairly efficient with its fuel-saving capacity.
As a rule of thumb, vehicles listed as consuming less than 6 litres of fuel for every 100 kilometres are regarded as fuel efficient. The car manufacturer will list out the specs of the car and its fuel efficiency gauge before purchase, so be sure to check it out before signing any contracts.
Furthermore, fuel-efficient cars often follow a specific type of build structure. This includes a smaller engine, a lightweight body, and a small axle ratio. Pick cars that follow this structure and you’re more or less guaranteed to have a fuel-efficient vehicle. If no car hits that specific litre per kilometre range, pick a car that falls closest to it.
5. Technology and Infotainment
When buying a brand new car, it’s best to choose one that’s future-proof and fitted with the top features. Fortunately, this is not too hard in today’s day and age, as many of today’s vehicle catalogues are equipped with smart systems that enhance the driving experience. This includes navigation and safety features, among many other things.
If you want to revel in convenience in your new car, pick cars with an extensive infotainment system with voice control, GPS, and multiple connectivity options for phones and stereos.
Some hybrid vehicles and EVs also come with advanced driver assistance systems, such as adaptive cruise control, lane-keeping assist, and parking sensors. This makes the driving experience extremely smooth for everyone.
Pick a car that has a mix of features that you feel would enhance the driving experience. This way, you’ll always look forward to bringing your car out for a spin.
6. Repair and Replacement Accessibility
Your vehicle may not need to undergo a lot of repairs during its early stages, but there are bound to be some mechanical problems down the line.
A lot of minor problems with gas-powered cars such as scratches and low fluids can easily be touched up and fixed by going to the car repair shop. These car types have been around for a long time, making it easy to find qualified specialists to work on most repair jobs.
For EV owners, it’s a different story. Car repair specialists are few and far between, and in some cases, completely inaccessible as the car’s closest manufacturer may be a multiple hour drive away.
It’s important to take into consideration your repair frequency when purchasing a vehicle. Some cars are also more costly to repair than others, so bear that in mind before making a selection.
You should also consider whether the car has an extensive warranty package and the coverage the brand provides its customers. In doing so, you can ensure that you’ll have a plan of action when your car needs fixing.
7. Cabin Comfort
Another important consideration to make is the comfort of your car’s interior. You want the driving experience to be pleasant for not just you, but also the rest of your passengers.
When going to the dealership, be sure to get inside the vehicle and feel it all around—the plush seating, upholstery, legroom, controls, lighting, and temperature settings. Give it a test drive, and determine whether you’re okay with the noise levels coming in from external sources.
A pleasant driving experience starts with a positive acknowledgement of the interior. As such, be sure to consider that before purchasing your next car.
Best of luck in your car procurement journey!
Written By
Matt Banks
Matt is the founder of Autohero.com.au and has been hooked on cars and repairs ever since childhood.
A veteran in automotive since leaving school, Matt has completed his trade as a panel beater and is across all things with wheels.
His first car was a 1967 FORD XR Wagon followed by a string of collectable Holden’s.
Have a question for Matt? leave a comment below.