May 31, 2020
Getting the best car deals doesn’t have to be hard. There are some easy ways to get the best price for that new car that you’ve been looking for. Buyers can feel a bit overwhelmed when figuring out the best deals on new and used cars.
OnlineLoans enlists the help of an anonymous insider with many years’ experience in the car industry:
Mismatching a car to your lifestyle & needs can be an expensive mistake
Stretching a budget for cars under factory warranty is often worth it
Polish your credit score to help when buying a car on finance
The best car deals happen at the end of the month
Buying cars interstate isn’t too difficult
1: Know what you want
Figure out the car that you want and how much you want to pay. It’s common to hear people want ‘just a good one’, or ‘a car that gets me from A to B’.
If you find just a bad car that can’t get you from A to B, it’s a bad deal. The best car deals are on the cars that actually suit you.
Whatever’s important to you, get a clear idea to make it easier when searching for the best car deals and getting that dream car. For example, you may want / need:
Excellent fuel economy
Parking in tight spaces
Once you know what you want, you can start to get an idea of the sort of prices you can expect to pay. Being informed about what you should be paying will help you get the best deals on new cars.
Don’t make the mistake of: letting a salesperson choose for you.
If you’re not familiar with makes and models, it’s easy to get swayed by someone pushing you into a particular vehicle, but is it in your best interests?
Insider Tip: “When clients don’t know what they want, we’ll naturally show them top-of-the-range vehicles and more expensive ones. That’s how we make a living! However, when clients do their homework, it’s easy to find a car that suits them.”
2: Budget carefully
Before you negotiate any deals, make a financial plan and budget carefully. Work out your total income per pay cycle, and ballpark monthly expenses. Knowing the advantages of finance companies over traditional banks is helpful too as niche lenders can offer better terms.
Calculating your budget and how much you have to spend will instantly help you to navigate the best deals on cars. Set a limit on what you can pay to ensure you aren’t talked out of this by a salesperson.
Don’t make the mistake of: interest rate tunnel vision.
When it comes to finance, many people only ask ‘what’s the rate’. It’s easy to forget things like early repayment fees, what vehicles the loan is tied to (rates vary on the age of vehicle) and loan terms.
Insider Tip: “Most people buy cars on finance these days but often don’t know how it all works. Getting an idea of your credit score and improving it can make things easier and faster for clients and salespeople alike.”
3: Be a shrewd negotiator
If you find a deal on a new car that you’re keen on, don’t simply agree to it. Try negotiating with the seller, making sure that your first offer is lower than you’re prepared to pay.
If your offer is accepted you can be happy that you’ve got one of the best car deals. Yet even if your offer is rejected, the deal could still be within your budget.
Don’t make the mistake of: forgetting your poker face.
Experienced salespeople know how to ‘read’ potential customers. Get the best car deals by making sellers work for you – not the other way around. If you seem too keen on a car, they’ll know that they won’t have to impress you with their best car deals.
Insider Tip: “Timing is important. Buy cars in the last few days of the month. This is when salespeople get desperate to meet their targets. I’m much more open to low offers at the end of the month – the whole dealership is!”
4: Shop around
Car shopping should be an exciting thing to do. Online resources are astronomical so be sure to scour the internet for reviews.
Things to consider
Other owners: Check online to see if other owners have reported any problems with the vehicle models you’re looking at.
Pictures aren’t worth 1000 words: Cars often look immaculate in photos online as sellers select the best angles. Make sure to view the vehicle in person and in daylight hours.
Test drive: Never buy a car without taking it for a thorough test drive. You may find something wrong or something you don’t like. For example, lack of power, things not working or having to go through screen menus for simple things like turning on the A/C.
Private sale Vs Dealer
Private sale: These are often cheaper – they won’t have any dealer warranties or finance options. However, they often come with the highest risk. After parting ways with your cash, you won’t have any legal legs to stand on to get it back in the event the car has problems. Ideally, the seller has kept the car in good condition so make sure you thoroughly inspect vehicles.
Dealer used: Reliable dealers inspect and repair vehicles when they acquire them so there’s a high chance their cars are in good condition. Make sure to choose a reputable dealer and again, inspect the vehicle. Some dealers offer a (conditional) warranty and even a money-back guarantee.
Don’t make the mistake of: waiting too long or jumping too quickly.
It can be a fine line, but ‘umming and ahhing’ over a vehicle could result in you losing out on the one you like. Buy too fast and it’s easy to make the wrong choice.
Insider Tip: “Some clients think buying cars interstate is too difficult. They can be easily transported to your city, often for several hundred dollars. Just make sure there’s registration on it so you can change the plates over without having to buy permits. This just means your state government matches the engine and chassis numbers and transfers the plates to your state. You’ll have to pay fees though.”
5: Ask for help
If you find a used vehicle you like, it can be worth paying a professional to inspect it. This means a mechanic runs tests and looks for anything that’s broken or may break in the future.
Additionally, get a PPSR (Personal Property Securities Register). Available online, these documents tell you if a vehicle has ever been written off, reported stolen or has any finance owing on it.
Don’t make the mistake of: guessing repair costs.
Often, repairs can be a simple fan belt or wiring connection. Other times, it’s thousands of dollars in labour and parts. If you find a car with a few issues for a great price, get a professional quote.
Insider Tip: “New car warranties cover pretty much everything – unless it’s the driver’s fault. So if something breaks, it’s free to fix. Stretching your budget to purchase a vehicle still under factory warranty is often worth it. It’s a big selling point for new cars, that’s why we advertise warranties.”
Know the ways to keep your car’s value high so it won’t end up being a problem to sell or trade-in next time you want to upgrade. This will help you get your funds for your next car.
If you’re not sure of your budget, it’s really tough to find the best car deal. We can assist you in applying for the right car loan so you can get the best car deal! Get a quick quote from OnlineLoans to see your borrowing potential today.