Average Australian Mortgage Size in 2023
29 Nov 2023
If you’re in the market for a new car, you’re probably comparing the retail prices issued by the manufacturer. While this will help you assess the relative expense of each car, you need to remember that the majority of transactions at a dealership will actually be for significantly less than the retail price. If you know how to negotiate the best price on a new car, you might be able to save thousands of dollars. Car dealers want to get the sale done, and they will often compromise to a surprising extent in order to make that happen. If you prepare properly, leverage your position appropriately and pick up on any underhand tricks the dealer might employ, you could end up driving away from the dealership with an irrepressible grin on your face. Our tips on negotiating car price will walk you through each step of the process to help make that happen.
The first thing you’ll want to figure out is the type of car you are after. It's important to take a moment to consider your needs and what you'll be using your vehicle for. If you'll be mostly commuting through busy city centres and inner suburbs, a smaller car may be a more maneuverable (not to mention cost effective) choice than a big Hilux.
Once you've identified the type of car that best suits your lifestyle, it's time to do your due diligence. Take a deep dive into things like safety features, fuel efficiency, and interior comfort to find some of the options that best suit you. If you end up with a shortlist of several options, you’ll give yourself more flexibility than narrowing down early on the exact make and model you want.
You should also research the prices these cars are selling for in Australia. If you browse websites like Carsales or Carsguide, you can get a sense for the actual price the cars you are interested in are selling for. As we mentioned, you will likely find a significant difference from the advertised retail price.
You really can’t overprepare before you go new car hunting. The more information you have about the various features, specifications and performance of the cars you are after, the better your position when you get into the dealership.
A substantial chunk of the cost of buying a car is the interest on your car loan. The rate you secure can play a big part in figuring out whether you can afford the vehicle you want.
That's why we recommend shopping for a car loan before you even step into a dealership. By doing so, you'll have a better idea of your price range and can narrow down your search to cars within your budget. Having a pre-approved loan offer when you walk into a dealer also shows them you've done your homework and gives you a hard price limit as a cap on price negotiations.
Many dealerships offer their own finance arrangements for new cars. They often spruik low-interest rates which seem attractive at the time, given you can sort the finance immediately and it seems you will be securing a good deal with low repayments. However, these loans often come attached with exorbitant upfront and ongoing fees, blowing out the cost of your loan and costing far more than going through a traditional lender.
At loans.com.au, we offer competitive car loan rates and a fast, easy online application process. Apply today and get pre approval for a car loan before you walk through the dealership doors, or chat to one of our friendly car loan specialists to get a better idea of your borrowing power.
It’s important to remember that your loan repayments will not be the only ongoing expense associated with your new ride. It’s a good idea to consider some of the other costs when working out your budget. After you've researched your financing options, it's important to get an idea of what it might cost to insure the vehicle in your area. If you get a quote for the type of car you are interested in beforehand, you can make sure that insurance won’t push you over budget.
Fuel and potential repair costs are other considerations. It’s worth getting a rough idea of how often you’ll need to fill up, at the petrol or charging station, and how much it will set you back each time. You’ll also want to consider how expensive it will be to repair your car if something goes wrong. If you are buying a car made in Europe (a Volkswagen or BMW, for example), it will normally be more expensive to replace parts than it is for vehicles made in Australia or closer countries.
So, armed with meticulous research and preparation, it’s time to head out to the dealership. There are several things you’ll need to bear in mind.
Unfortunately, there are still car dealers out there that live up to the unscrupulous reputation of the industry. There is a variety of ways they can be manipulative, the below being just a few common examples.
Hopefully you’re feeling a bit more confident chasing your dream car now. If you’re ready to get going, check out our range of loans available for new cars.
As Australia's leading online lender, loans.com.au has been helping people into their dream homes and cars for more than 10 years. Our content is written and reviewed by experienced financial experts. The information we provide is general in nature and does not take into account your personal objectives or needs. If you'd like to chat to one of our lending specialists about a home or car loan, contact us on Live Chat or by calling 13 10 90.