The ultimate guide to buying a new car

Purchasing a brand-new car is an exciting but complex process that requires careful planning and informed decision-making. From identifying your needs to securing financing and negotiating the best deal, every step is essential to ensure you drive away satisfied. This complete guide will lead you through the process, making it as smooth and enjoyable as possible.

The first step in purchasing a new car is understanding your specific requirements. Consider the following factors to help narrow down your options:

• Passenger capacity: How many people will regularly travel in your car? An SUV or a minivan may be suitable for a large family, while a sedan or hatchback could be sufficient for individual use or small families.
• Car seats: If you have young children, check for cars with the appropriate ISOFIX points for child seats.
• Driving conditions: Where will you be driving most often? City drivers may prefer compact cars for easy manoeuvring and parking. In contrast, those who drive on rough terrains might need a robust SUV with all-wheel drive.
• Fuel economy: Consider your preference between petrol, diesel, hybrid, or electric cars. Hybrid and electric vehicles offer better fuel economy and are environmentally friendly, but they may come at a higher cost. Understanding the fuel economy of different car models can help you estimate monthly fuel expenses and choose a car that fits your budget.
• Safety features: Modern cars have advanced safety features such as lane departure warnings, automatic emergency braking and adaptive cruise control. Check the ANCAP Safety Ratings to compare safety across models. Understanding these safety ratings and their meaning can help you choose a car with the necessary protection.
• Cargo space: Assess how much storage space you need. This is particularly important for families, travellers or those who frequently transport goods.
• Towing capacity: If you plan to tow boats, trailers, or caravans, ensure your vehicle has a powerful engine and sufficient towing capacity.
• Parking Space: Ensure the car fits in your garage or designated parking spot. Larger vehicles, such as trucks or SUVs, may not be suitable for small parking areas.

Once you know what type of car you need, it’s essential to determine how much you can afford. Consider the following steps:

• Review your finances: Calculate your monthly income and expenses to determine how much you can comfortably spend on a car. Remember to factor in additional costs like insurance, maintenance and fuel.
• Loan pre-approval: Getting pre-approved for a car loan can provide a clear picture of your budget and strengthen your position as a serious buyer when negotiating with dealers. Visit reputable lenders or financial institutions to understand your borrowing power. Additionally, familiarise yourself with car financing options such as loans, leases, and hire purchase agreements to determine which best suits your financial situation. Research and compare.

When you have a clear understanding of your needs and budget, start researching different car models. Use the following resources:

• Online reviews and ratings: Websites like CarsGuide, Drive, and Canstar provide detailed reviews and ratings of various car models. Pay attention to aspects like reliability, performance and user satisfaction. Understanding how to interpret car reviews and ratings can help you make a more informed decision about your purchase.
• Manufacturer websites: Check the official websites of car manufacturers for detailed specifications, pricing and available features.
• Dealerships: Visit local dealerships to see the cars in person. Test drives are crucial to understanding how a car feels and performs.
• Comparison tools: Online comparison tools evaluate different models side by side. They can help you compare features, prices, and overall value. Understanding how to use these comparison tools effectively can help you narrow your options and choose the best car for your needs. Consider the Total Cost of Ownership.

The drive-away price of a car is just the beginning. To get a true sense of what a vehicle will cost you, consider the total cost of ownership, including:

• Depreciation: Cars lose value over time. Some models depreciate faster than others. Check depreciation rates to understand how much value your car will retain. Understanding car depreciation can help you estimate its future value and make a more informed decision about your purchase.
• Insurance: Premiums vary based on the car model, your driving history and location. Get quotes from multiple insurance companies to find the best rate.
• Fuel costs: Calculate the car's fuel efficiency and estimate your monthly fuel expenses based on your driving habits.
• Maintenance and repairs: Some cars are more expensive to maintain than others. Check the warranty and consider the availability and cost of parts and services. It is also essential to understand the different types of car warranties, such as manufacturer’s, statutory warranties for new and used cars, and extended warranties. Check what they cover to protect you against unexpected repair costs.
• Taxes and Fees: Remember to include registration fees, CTP insurance, stamp duty and other applicable fees.

Timing can significantly impact the price you pay for a new car. Here are some tips to help you get the best deal:

• End of the month/quarter: Dealers often have sales targets to meet. Buying at the month's or quarter's end can result in better deals, as salespeople are more motivated to negotiate.
• End of the year: Dealerships often offer significant discounts at the end of the year or end of financial year to clear out current-year models and make room for new inventory.
• Holiday sales: Look out for sales events during holidays like Boxing Day or Australia Day, when dealerships typically offer attractive deals.

When it’s time to buy, remember that negotiation is a powerful tool in your hands. Here are some tips to help you assert your control and get the best deal:

• Thorough research should be prioritised before entering the market. Websites like RedBook or Carsales can provide a fair price range based on local sales, ensuring you’re well-prepared and knowledgeable.
• Be prepared to walk away: If unsatisfied with the deal, don’t hesitate to walk away. This shows the dealer that you’re serious and can often result in a better offer.
• Consider the total package: Focus on the total cost of the car, including any fees, rather than just the monthly payment. Dealers might offer lower monthly payments by extending the loan term, which increases the total cost.
• Negotiate add-ons separately: Dealers often try to sell add-ons like extended warranties, paint protection, or financing packages. Negotiate these separately to avoid inflating the car’s price.

Once you’ve negotiated the best deal, it’s time to finalise the purchase:

• Review the contract: Carefully review the sales contract to ensure all agreed-upon terms are included and there are no unexpected fees.
• Arrange financing: If you still need financing, now is the time. Applying for a car loan with Azora is simple, fast, and 100% online in three simple steps:
  1. Apply online. We require your personal details, which include your loan amount, income and expenditure. We also need certain documents, such as your identification and bank statements.
  2. Receive your loan terms. If your loan is approved, we will provide detailed loan terms, including your loan amount, loan term, interest rate, fees and repayment amount.
  3. Purchase your car. If you agree to the loan terms and sign the digital contract, you can then purchase your car from a dealer or privately.