| PREPARE • Always use a cold-hearted approach to car buying. Let your head do the work, instead of having your heart talk you into buying the wrong sort of car. Sadly, dreams can
be dangerous.
• Buy a copy of Australia’s Best Used Cars, a sister publication to this one. It’s also published by Universal Magazines and will become an invaluable resource of information and helpful hints.
• Decide what size car you really need. Be realistic. Buying a 4WD for that annual holiday trip may mean you spend 48 weeks every year driving something far too large and expensive.
BUDGET
• Set a budget and stick to it.
• Don’t forget to budget for transfer fees, registration and insurance, not just for the car itself.
• Transfer fees are usually about 3 to 5 per cent of the cost of the car.
• Balance of registration is included with the car — this may be for one day or a full year. Typically this amounts to about $600 to $800 per year.
• Insurance always depends on the driver and their age, the area in which the car is garaged and any existing no-claims history. Insurance can be as low as $500 pa or as high as $5000 pa.
CAR LOANS AND FINANCE
• Shop around for finance before looking seriously at cars. This will ensure you get the optimum deal and are well-prepared to seriously shop.
• Research your finance as thoroughly as you research each car. There are often bigger savings in getting the right loan than you can make by getting the right car. For example, adding your car to your home loan finance can result in an interest rate of about 8 per cent.
SHOPPING AROUND
• Find a friend and/or relative who really knows cars and get them to accompany you on your shopping/inspection rounds (and avoid those who only think they know what they are talking about…you know the type we mean!).
• Get out on the road early in the morning to look at cars. The best cars and deals seldom last more than a few hours.
• Look over each car carefully. Don’t just rely on a quick drive around the block. This is where your expert friend or relative can really help.
• Make notes on each car; doing this will help you to be a lot more practical and discerning. Appearing organised and informed means you are likely to be treated more seriously by salesmen and dealers.
WHERE TO SHOP
• Dealer car yards: usually the most common place to start due to the range of vehicles available. Here you can haggle on price and run full inspections without putting anyone out. The tips and advice below on “buying your car” are based on a car yard scenario.
• Auctions: for the more adventurous shopper, auctions are renowned as being very cheap and offering great deals, but you must be very prepared and sure of what you are buying before venturing into an auction house. Fowles Auction Group is one of the biggest and better known car auction houses in Australia and deals in both new and used cars. Visit www.fairtrading.nsw.gov.au and follow the links through to the Office of Fair Trading’s page on “Where to Buy a Used Car” for details on the risks and requirements for buying at auction.
• Private sale: you can get a good price if you are prepared to trawl through directories such as The Trading Post. Again, you must be very focussed on what you want and how much you’re prepared to pay and definitely be accompanied by a car-savvy friend if you’re not really sure on what to look for. You can arrange for a vehicle inspection at your own cost but there are no statutory warranties when buying in this manner. You can talk the price down in most cases but remember any slightly higher offer will beat you every time. Private sellers have the opportunity to pick and choose their buyers.
BUYING YOUR CAR
• Haggle on the price. The car has almost certainly had its price loaded to allow for you doing so. Don’t be shy or you could end up paying too much.
• Arrange for a professional inspection from your motoring association or a specialist mechanic. If you’re not currently a member of a motoring association, then consider doing so as it makes a lot of sense. You can join at any time, there can be savings in inspections, insurance, finance and often getting multiple services can mean a further discount. Rates for an inspection should be about $100 per hour.
AND FINALLY
• Before taking delivery of the car, make sure nothing has been removed or swapped for cheaper or worn items since you last saw it and check for damage.
• Notify the registration authorities about the change of ownership within the nominated period (usually 14 days) or you may get stuck with fines incurred by the previous owner.
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THE ORIGINAL AND THE BEST
