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Top 5 Considerations When Looking For A New Car in Australia

Are you looking for a new car?

Perhaps your trusty old car has finally given up or you’re just due for an upgrade. Whatever the reason, you need a car that suits your needs.

But there are so many options! Where do you start?

Whether that’s daily errands, trips to the office or even a fun adventure, buying a new car is a significant investment, and it’s essential to make an informed decision to get the best value for your hard-earned money.

In this article, we’ll guide you through the top 5 considerations when looking for a new car, so you can enjoy a hassle-free car-buying experience.

What to look for when buying a new car

Buying a new car is a significant financial decision that requires careful consideration. To save money and get the best value for your investment, it’s important to take your time to research, test drive and negotiate a variety of options.

If you’re not sure where to start, here are the 5 things that you need to take into consideration when looking for a car that will suit your unique needs:

  1. budget
  2. vehicle type
  3. safety features
  4. fuel efficiency
  5. maintenance and repairs

Now, let’s discuss these in more detail.

Top 5 considerations when looking for a new car

1. First things first, your budget.

Of course, when buying a new car it’s essential to set a realistic budget that won’t break the bank. To do this, consider both the upfront cost and any ongoing expenses, including insurance, maintenance and fuel.

When you’re looking at your budget, remember to factor in additional costs like registration fees, taxes and any optional extras or accessories you might want to add to your new car. These considerations can also help you decide whether it’s best to take a lease or a loan for your car.

2. Think of the vehicle type.

The type of vehicle you choose depends on your specific needs and preferences. Think about how you’ll primarily use your car. Are you looking for a small and efficient city car for daily commuting or do you need a larger vehicle for family trips and outdoor adventures?

Some of the choices are:

  • Sedan: known for their comfortable interiors and smooth rides. These are great for individuals and small families, as they offer ample trunk space and reasonable fuel efficiency.
  • SUV (Sport Utility Vehicle): If you need more space for passengers and cargo, an SUV might be the right choice. SUVs are versatile and can handle various road conditions. They’re a popular choice for families and those who need a little extra room.
  • Electric or Hybrid: If you’re eco-conscious and want to save on fuel costs, you might consider an electric vehicle (EV) or hybrid vehicle. Australia’s charging infrastructure is growing rapidly which means these cars are becoming more accessible.

These vehicles may offer government-backed incentives too. Read our Quick Guide to Australian EV Incentives here.

3. Check the safety features.

Safety should be a top priority when considering a new car. Australia has stringent safety standards, and it’s important to look for vehicles that meet these requirements. Pay attention to the following safety features:

  • Airbags
  • Antilock Braking System (ABS)
  • Electronic Stability Control (ESC)
  • Collision Avoidance Systems
  • Child Safety Features

You can also check the ANCAP (Australasian New Car Assessment Program) safety rating for the car you’re interested in.

4. Consider fuel efficiency.

It’s essential to consider a car’s fuel efficiency to save money in the long run. The fuel efficiency of a vehicle is often measured in terms of “litres per 100 kilometres” (L/100km). The lower the L/100km figure, the more fuel-efficient the vehicle is.

If you’re mainly driving in the city, a smaller car with a more fuel-efficient engine is a wise choice. On the other hand, if you frequently undertake long highway journeys or have a larger family, a fuel-efficient SUV might be a better fit.

5. Ask about long-term maintenance and repairs.

Consider the long-term costs associated with maintaining and repairing your new car.

To do this, research common maintenance needs for the make and model you’re interested in. Some cars may have more expensive parts or require specialised servicing, so to save money in the long run, it’s a good idea to choose a vehicle with readily available and affordable replacement parts.

Make informed decisions when buying a car

By keeping these top 5 factors in mind, you can make an informed choice that not only meets your needs but also saves you money in the long term. Also, don’t be afraid to take your time, do your research and test-drive several models to find the perfect new car for your lifestyle.

Our team of car-buying professionals are also here to help you.

Find the right vehicle at the right price with Private Fleet

Private Fleet empowers you to gain all the benefits of a fleet purchase but as a private buyer.

Backed by decades of vehicle industry experience, fleet buying power and a network of car dealers across Australia, we are here to ensure that buying your next vehicle will be as straightforward as possible for you.

Shopping for a car is an enjoyable process – let us make it hassle-free, too.

Reach out to us today for a seamless and simple car-buying experience.

Should I Repair My Car or Buy a New Car?

Sometimes it’s hard to let go and move onto a new vehicle.

Whether it’s an emotional attachment to our pride and joy, or the belief that a new car is less attainable and will end up costing us more – we often like to give ourselves a reason to resist change.

But while these may be factors we care to consider, the more pertinent questions we should be looking into are how the numbers stack up, and what our personal circumstances are.

The easiest way to consider this is to separately assess the here and now, from the future. When it comes to the here and now, you need to consider the up–front costs associated with purchasing a new vehicle. This obviously includes tangible elements, but also intangible factors too.

Weighing up a new car

Starting with the obvious, to fund your purchase it is likely you will either need to trade in your existing vehicle, supplement it with savings or finance, or take out a loan for the entirety of the car’s price. And when interest rates are rising, that’s an even bigger consideration.

This introduces potential cash flow strains, as to get the best possible financial outcome, it’s better to pay off as much of the initial purchase cost as possible. The downside means you will be left with less disposable expenditure if you make a larger up–front payment.

Looking at a lengthier timespan, you’re facing interest repayments, maintenance, repairs, registration and insurance costs. Besides that, there are operational costs concerning fuel efficiency.

To help form a comparison, you’ll want to break these expenses into weekly, monthly and annual prices for the ownership of your vehicle.

Choosing to repair your current car

On the other side of the ledger, you’re operating a car that does not involve an initial cost. But while there may not be up–front costs involved, ongoing operational expenses are likely to cost significantly more than a new vehicle.

You have to keep in mind that an existing or used car, particularly an old one, is usually more prone to repairs or maintenance even if in good condition.

And when such maintenance or repairs are undertaken, parts may be far dearer considering their scarcity, or you may need to replace more parts considering their life span could be surpassed.

An existing car is also more likely to be less fuel efficient than newer models. There is a greater chance you will pay more to fuel your current car. If you have repayments due, you should also assess these so that you’re including all relevant costs.

One thing that does generally work in favour of existing cars is that insurance is likely to be cheaper, although this is just a rule of thumb as opposed to a certainty.

New cars are also stung by a huge depreciation expense which, depending on your circumstances, could be beneficial as a business owner using the car for taxable business purposes.

What else to consider?

Keep in mind a couple other things.

With old vehicles more likely to break down, what impact will this have on other aspects of your life? How will you get around while you don’t have access to a vehicle? Could it impede family matters such as taking the kids to school, or dropping a spouse off at work?

There may also be features that are less safe compared with today’s cars because of technological advancements.

In deciding, you may wish to adopt a particular line of thought – if the repairs or operating expenditure for an existing vehicle surpass the car’s market value, or the financing of a new vehicle, or even the repayments due on the current vehicle over the course of a year, move on and purchase a new car.

If on the other hand things are still running well, and relatively affordable, or you’re in a position where you can’t afford to outlay a large initial capital cost, keep on top of maintenance to defer the decision.

Should I Buy a Ute or SUV?

Choosing between a ute and an SUV depends on your specific needs, lifestyle, and preferences. Both types of vehicles have their advantages and disadvantages, so it’s essential to consider your priorities and how you plan to use the vehicle.

Here are some key factors to consider when deciding between a ute and an SUV.

Cargo and Towing Capacity:

Ute: generally designed for heavy-duty use, utes are a better choice if you need to transport large or heavy items regularly. They also tend to have higher towing capacities, making them suitable for hauling trailers, boats, or other equipment.

SUV: They typically have a closed cargo area, which is more secure and weather-resistant than a ute’s open bed. While some SUVs offer good cargo space, their towing capacities may be lower than utes, so consider your towing needs.

Passenger Capacity:

Ute: Usually have two rows of seats and can accommodate up to five passengers, but the rear seats may be less spacious and comfortable compared to SUVs.

SUV: Available in various sizes, from compact to full-size, and can often seat more passengers, including up to eight occupants. If you need to transport a larger family or group of people regularly, an SUV may be a better choice.


Off-Road Capability:

Ute: Many utes come with four-wheel drive (4WD) or all-wheel drive (AWD) options, making them suitable for off-road adventures or rugged terrain.

SUV: SUVs come with varying levels of off-road capability. Some are designed for mild off-roading, while others, like dedicated off-road SUVs, are built for more extreme conditions.

Fuel Efficiency:

Ute: utes may have larger, more powerful engines designed for heavy work, which can result in lower fuel efficiency compared to some SUVs.

SUV: Many SUVs offer better fuel efficiency, especially the smaller and more compact models. If fuel economy is a priority, an SUV might be a better choice.

City versus Rural Driving:

Ute: utes can be more challenging to maneuver in tight urban spaces due to their longer wheelbase. They are often preferred in rural or suburban settings where space is less of a concern.

SUV: Smaller SUVs are generally easier to drive in city environments because of their compact size and better visibility, but obviously this will be different for larger SUV models.

Safety:

Both utes and SUVs come equipped with a range of safety features, but the availability and level of these features can vary between models and brands. Be sure to research and compare safety options when making your decision.

Price:

Consider your budget, as utes and SUVs come in a wide price range. Utes tend to have a lower starting price for basic models, but high-end models can be expensive. SUVs also vary in price, with luxury SUVs typically being more costly.

Ultimately, choosing between a ute and an SUV should be based on your specific needs and preferences. It’s advisable to test drive both types of vehicles and consider factors like cargo space, passenger capacity, towing needs, and how you plan to use the vehicle before making a final decision.

Additionally, research the available models and their features to find the one that best suits your lifestyle and requirements.

Demystifying Deposits: How much do you need to save before buying a new car?

How much do you need to save before buying a new car

 

Picture this: you’re cruising down the scenic coastal roads of Australia with the wind in your hair and the sun kissing your skin while your favourite tunes are singing through the radio.

Sounds perfect, right?

More than just a mode of transportation, a car is a real ticket to freedom, pride, comfort and adventure. However, the journey of hitting the open road always begins with navigating the financial side of car ownership, starting with saving for a car deposit.

In this quick car deposit guide, we’ll explore what a car deposit is, how much you typically need to save and share some reminders for when you’re putting down a deposit for your dream car.

 

What is a car deposit?

A car deposit is a lump sum of money that you pay upfront when buying or leasing a car. It’s a demonstration of your commitment to buying the car and is often required by dealerships and lenders.

Essentially, it serves as your initial investment in the vehicle, while the remaining cost will be completed through your choice of car financing method.

 

So, how much do you need to save for a car deposit?

The amount of the car deposit can vary, depending on several factors including:

  • car price,
  • lender’s policies and
  • your credit score

Some lenders require a fixed percentage while others can be more flexible. A good credit score can also help with negotiating the initial deposit or even help you qualify for a no-deposit option.

Typically, car deposits can range from 10% to 20% of the vehicle’s purchase price. According to a Canstar Blue survey, the average spend for cars in Australia is $40,000. This means that the usual range of car deposits is around $4,000 to $8,000, depending on the factors mentioned above.

 

how much do you need to save for a car deposit

 

3 Tips to help you save for your initial car deposit

Saving for your dream car might seem daunting at first, but with some careful planning and discipline, you can reach your goal sooner than you think. Here’s how:

  1. Set a clear goal.

    Start by determining how much you need for your car deposit. This involves considering your dream car and doing your research. With a specific target, it’s far easier to stay motivated.
  2. Open a dedicated ‘car deposit’ savings account.

    Consider opening a separate savings account for your car deposit. This way, you can easily track your progress and avoid being tempted to use the savings for other expenses.
  3. Stay disciplined.

    Because a car is a big investment, remember that patience and discipline are required. Try to stay focused on your goal and think of the exciting road trips and adventures that await you.

Once you’ve saved enough for your initial car deposit, the next thing to do is to be prepared for when you discuss your car loan and deposit with a lender.

 

Things to remember when putting down a car deposit

 

Do the necessary checks before paying.

Book in a test drive and make sure that you’re getting the right car. If you’re buying a used car, be sure to run a car history check early on.

Carefully examine the contract before signing.

Read the vehicle loan contract carefully and be wary of verbal agreements. This part may be a little tedious, but it can help you avoid car financing mistakes and save money in the long run.

Don’t be afraid to negotiate a car deposit.

Don’t hesitate to negotiate the terms for your vehicle deposit. In some cases, they may be willing to accept a lower deposit amount depending on your credit score and the car you’re looking at buying.

 

Saving for a car deposit may not be the most exciting part of car ownership, but all of the benefits that come afterwards are definitely worth all the effort.

With determination and careful planning, you’ll soon save up for your initial car deposit and find yourself behind the wheel of your dream car. Better yet, if you speak to us, we can help you through the process!

 

Find the right vehicle at the right price with Private Fleet

Private Fleet empowers you to gain all the benefits of a fleet purchase but as a private buyer.

Backed by decades of vehicle industry experience, fleet buying power and a network of car dealers across Australia, we are here to ensure that buying your next vehicle will be as straightforward as possible for you, whether you’re ready with your car deposit or not.

Shopping for a car is an enjoyable process – let us make it hassle-free, too.

Reach out to us today for a seamless and simple car-buying experience.

 

Disclaimer: The article is for informational purposes only and does not constitute financial advice. The content is not intended to be a substitute for professional financial advice, and readers are advised to consult their financial specialist before making any financial decisions. Readers are solely responsible for their own financial decisions and should conduct their own research and due diligence before making any investments or taking any financial action.