Simple tips for buying a new car

Buying a car is exciting, but for most of us, it’s not something we do all the time. These simple new car-buying tips from Compare Money could help you make more confident choices when you buy your next car.

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1. Do your research:
While a two-seat sports car might look great, it's probably not going to work if you have a family of four. Sorry! Knowing the type of car you need and what options are available, along with knowledge about the car market, can help when you’re negotiating for your new car.

2. Set a budget and stick to it:
This might be the most difficult! Browsing through a shiny car dealership and talking to a smooth salesperson can quickly see you spending thousands more than you meant to. But if you’ve done your research, it can be easier to know what you should be getting, and you should be well prepared to stick to your budget.

3. Don’t forget insurance costs:
Australian states and territories have compulsory third-party insurance requirements to register a vehicle. In addition, you may decide to purchase third-party property or comprehensive insurance, which is an additional and regular cost you will want to budget for.

4. Know the rules that apply to you:
Imagine buying a car and then finding out you’re not allowed to drive it! Depending on your license type, a range of rules can apply. For example, probationary drivers in many states have restrictions on vehicle power. Check with your state road authority before you commit to buying.

5. Understand your finance options:
If you’re planning on financing your new vehicle purchase, there’s no shortage of car loan products on the market. Take your time choosing your car finance and get a good understanding of the terms and conditions, and payment obligations. A rushed decision here could cost you in the long term.

If you’re researching car finance, comparing a range of new car loans Finbeat Finance could be a good place to start.

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