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Car buyers in the driver’s seat to steer a good deal

Announcement posted by Beyond Bank Australia 13 May 2013

Next month thousands of Australians will take advantage of end of financial year car sales, but all buyers should do some homework first to make sure they’re actually getting a good deal, advises leading credit union, Community CPS Australia.

With June consistently being the most popular month to buy a car - particularly in 2012 when sales rose 17 per cent compared to June 2011 and with demand in Europe slumping by as much as 20 per cent – Australian car prices are falling, making it a buyers’ market.

Community CPS’ General Manager Distribution in the Hunter Valley, Ray O’Brien said it’s easy to get swept up in the excitement of shopping for a car, particularly during the promotional periods, but buyers could save hundreds of dollars more if they sort out their finance first.

"Sorting out your finances before shopping around helps give some clarity on what you can afford," he said.

"It also gives you better bargaining power, especially if you get your loan pre-approved because you know your budget and can negotiate a deal straight away. This could save you thousands of dollars and could potentially offset any lower finance rates offered by the dealership.

"Dealer finance packages can have appealing interest rates and be very convenient but consumers should consider the fine print," he said.

Mr O’Brien provided his top five tips for consumers to consider when securing car finance, including:

Before you start test-driving, get a car loan pre-approved

Consider all the terms and conditions on your car loan, not just the interest rate – do you need a deposit, is it a short-term agreement, can you make extra payments?

Read the fine print, particularly with highly promoted low rate loans – is this loan for a particular car, e.g. new not used, and is it available for a limited time?

Consider all expenses, not just the cost of the car – this includes stamp duty, insurance, running costs and interest

Explore a few loan options – talk to financial institutions

Shane Townsend from East Maitland decided to get pre-approved finance with Community CPS – operating as Companion Credit Union in the Hunter Valley – for a new work vehicle, before shopping around to help make the process easier.

"I knew from past experiences that the buying process would be easier if I got pre-approved finance for my Toyota Hilux first because I’d know how much I had to spend and could negotiate a deal with the provider straight away," Mr Townsend said.

"Companion Credit Union helped me work out a realistic loan amount which was affordable and allowed me to buy the heavy duty car I needed for my building business.

"Getting a car loan this time with Companion Credit Union was simple and convenient compared with my past experiences because they were helpful throughout the process," he said.

About THE COMMUNITY CPS AUSTRALIA GROUP

Three-time winner of Money magazine’s Credit Union of the Year award (2012, 2008) and Best Credit Union (2005) and winner of the Mozo People’s Choice Award for Best Credit Union (2012), the Community CPS Australia Group is one of the largest customer owned financial institutions in Australia. With assets under management approaching $4 billion, the Credit Union employs 598 staff across 46 branches to service more than 186,000 members. Community CPS is located in South Australia and the Australian Capital Territory, and operates as Wagga Mutual Credit Union in Wagga Wagga, Companion Credit Union in the Hunter Valley and United Community Credit Union in Western Australia. The Group comprises activities in banking, the community (through the Community CPS Foundation) and professional services (wealth management, tax and accounting services via Eastwoods). For more information visit www.communitycps.com.au