5 Questions To Ask Before Buying A Car

The decision to buy a new car may seem unimportant compared to buying a house, but the requisite due diligence is much the same.

A poor decision in the bargaining process could lead to years of extra debt, while a hurried selection could reduce the resale price.

Fundamentally, it comes down to the questions you ask at the start, which should include the following.

Does it meet my requirements and expectations?

Before you get started, it’s sensible to come up with a checklist of exactly what you’re looking for in a car. New or second hand? Prestige or budget? Compact or family? What model?

Following this, narrow down further and ask whether it has the right ANCAP rating and green rating, and has a clean and well reported maintenance history if it is second hand.

Do I know anyone with this car?

An authentic reviewer will tell you what the car dealer or private seller won’t. Peruse your network to see if anyone you know has the car you intend to buy and ask them for the pros and cons. You can also look on sites like reddit or reputable automotive and motoring sites for reviews of makes and models.

How much will it cost to run?

Underestimating the price of running your new car is a treacherous mistake from a budgeting point of view. Find out how much it costs to service (get quotes from several mechanics), how much a tank of fuel is and how long it normally takes before parts start to deteriorate. It also pays to get some price information on spare and replacement parts.

Any room to move on price?

Always be prepared to negotiate on price because the advertised price is rarely what the vendor expects to sell it for. If you have concerns, walk away, even if that takes the offer off the table. If a vendor thinks they may have lost their best buyer, they may come around.

How will I finance it?

Car loans are becoming a more popular way of paying for a new vehicle for those who don’t have ready finance. Before you take one, it’s vital you assess how much you can afford to borrow, what your repayments would be and how long the liability would hang around. For an obligation free consultation, speak with one of our expert consultants today. We offer a wide range of car finance solutions from a panel of more than 20 lenders.

Unlike houses and units, cars unavoidably depreciate in value, so only take a loan if you’re comfortable you will be able to pay it off over a period of time, in a variety of conditions, and know that it is unlikely you will recover the sale value.