7 tips for buying a new car
You’re set to buy a new car, but don’t know where to start. Do I want a SUV or sedan? Electric vehicle (EV), hybrid or petrol-power?
The many decisions you need to make before buying a new car can make the whole process a little overwhelming.
We have seven tips to help you when purchasing a new car.
1. Determine your budget
Before you set foot on the showroom floor of a dealership, think about how much you want to spend on a car.
Remember to consider ongoing costs like registration, insurance and fuel. This will help determine the type of vehicle you can purchase and your negotiating power when speaking to the salesperson. It can also help prevent overspending.
2. Know your needs
You’ll want to find a car that fits your needs. If you have a growing family, maybe a SUV is worth considering or, if you only use the car for city driving, maybe a hatchback is a better option. Nowadays, you can also decide whether you want to purchase an EV, hybrid or petrol powered.
It might be worth sitting down and doing the maths to see if an EV or a hybrid could be cheaper in the long run.
3. Check ANCAP safety ratings
Safety should be a priority when purchasing a vehicle. Australian new-car buyers don’t need to check all the safety features on a car themselves. Instead, you can visit the ANCAP website and find an independently tested rating of one to five stars. Try to buy the safest car you can afford.
4. Shop around
Before purchasing a vehicle, do some research online and find out the recommended retail price. This will give you a good idea of what the price might be when you arrive at the dealership.
5. Take a test drive
You’re probably spending a few thousand dollars on a new car, so you want to take it for a decent test drive before handing over your hard-earned cash. Don’t rush and drive it in a variety of traffic conditions, including on city streets and at higher speeds on a freeway.
Try to be objective making a judgement on the vehicle. Can you imagine driving this car every day? Am I comfortable and does it fit my lifestyle?
6. Check the warranty
Buying a new car at a dealership can be intimidating, particularly when they hand you lots of paperwork to sign. Spend time reading the fine print, particularly for the warranty so you know exactly what it covers and how long it lasts.
7. Organise insurance before purchasing the car
Before you drive out of the showroom, consider getting insurance to make sure your brand-new shiny car is covered.
Not all insurance policies offer the same cover so be sure to check specific inclusions and exclusions as well as limits.
For example, RAA Premium Comprehensive Car Insurance also includes new-vehicle replacement for up to five years from the first registration if the vehicle has been written off. *
Allianz South Australia Insurance Limited ABN 14 007 872 602 AFSL 232525 (Allianz SA) is the insurer and Royal Automobile Association of South Australia Limited ACN 677 371 274 (RAA) issues this under binder from Allianz SA. RAA do not provide any advice based on any consideration of your objectives, financial situation or needs. Policy terms, conditions, limits, exclusions, and underwriting criteria apply. Before making a decision about this insurance, please consider the Product Disclosure Statement (PDS) and Supplementary PDS (if applicable). The PDS and Target Market Determination (TMD) are available on our website.
*If you purchase your vehicle brand new and within 5 years of the original registration, the vehicle is a total loss, then it will be replaced by a brand-new vehicle. If same make/model not available, your car’s quoted replacement value will be paid, or it will be replaced with a comparable car. Policy terms apply.