Hunting down a great new car deal

Buying a new car is as exciting (sometimes as daunting) as it ever has been.

Today, there’s a wider choice than ever with more than 50 brands of vehicles on sale and a host of model variants – from compact city cars to family hatchbacks to swaggering four-wheel drives. There are cars and wagons and utes from just about every corner of the planet these days – aside from Australia, that is.

Yet many, if not most, of the old rules apply, whether looking to downsize, chasing a tow vehicle for a new campervan or helping a family member decide on fresh wheels.

Just remember, if a more mature motorist, to think about ease of use.

Maybe a manual V8 Mustang isn’t the right machine for the later years.

Leaving aside the Lotto win, budgeting for the new car purchase should be right up there with deciding on the type of vehicle you’re chasing.

These two decisions go hand in hand. No point looking at Range Rovers if the budget is limited to Mitsubishis. No point looking at seven-seater SUVs if the budget won’t stretch beyond a compact hatchback.

So, do the homework, with most of it made easier in 2024 through internet access to specialist motoring websites, newspapers and motoring magazines plus manufacturers’ websites.

Perhaps look out for owners of vehicles you’re considering and  consider comfort levels as an older driver. SUVs sell well for a number of reasons, including a higher ride height which makes it easier for access, easier on the back if strapping grandkids into child seats and, generally, offer more cargo space.

Be thorough when checking vehicle specifications. Can you live without a full-sized spare tyre? Will the dream 21st century machine fit in your 1960s garage? How long’s the warranty? Will that gorgeous body colour cost extra? Is this model about to be superseded? Is there room for the dog?

And remember, optional extras can add considerably to the final bill. Do you want personalised number plates? Extra tint for the windows? A tow bar?

Then, it’s not only a vehicle’s recommended retail price and the extras to consider. There are registration and insurance costs, plus estimated running costs including fuel and service imposts.

Resale values need thought – particularly if looking to upgrade a car every few years: ‘cheaper’ models may depreciate faster than others.

Check whether there’s fixed-price servicing and how that may affect the budget. The RACQ and other state motoring organisations publish annual reviews of running costs for popular models which can help with purchase decisions. Day-to day costs need to be balanced against purchase costs and resale values.

A conventional petrol-engined car could well be more economical, more cost-effective transport than a dearer petrol-electric hybrid version unless you are intending to own the latter for some years. A battery-electric vehicle – often more expensive than internal combustion-engined models – may take time (and cheap home solar power) to recoup the extra cost of the vehicle in fossil-fuel savings.

While battery-electric vehicles will become more mainstream, early data from the Australian Automotive Dealers Association and automotive analysts AutoGrab suggest electric vehicle (EV) value falls quickly after two years and takes longer to sell. North American rental car company Hertz has dropped 20,000 EVs from its fleet, citing greater repair costs and higher depreciation.

The RACQ recommends shopping around for competitive finance before heading off to the showrooms. Don’t accept a loan or finance agreement just because it’s quick, easy or convenient. The club suggests considering obtaining finance beforehand, or be well aware of rates of finance available, before visiting a dealership.

Buying a new car from a licensed motor dealer is less fraught with risk than buying a used car from under a backyard mango tree. Licensed dealers and motor manufacturers are bound by any number of rules and regulations to help make sales safe and sure.

Take a test drive (buying something this important online is not recommended) and maybe best on a route you know, or chose, rather than one determined by a salesperson.

Try, where feasible, to include a mix of road conditions and road speeds. A tip from consumer advocate CHOICE: take a ride as a passenger as well for another perspective. Perhaps it’s not quite so comfortable or quiet in the back seat?

Best to chase up at least three quotes. Having now sorted the choice of car and with a good idea of the best prices, there may still be haggling to be done on the floor – in particular if trading in a car.

Be wary of one-time-only deals and remember that it’s the bottom line that counts or how much is needed at the end of the day: the changeover cost. It may make little difference if dollars offered for the trade sound too good to be true while the price for the new machine remains high, or vice-versa.

Here CHOICE suggests pre-approved finance can be a handy bargaining tool and that buyers should hold firm if salespeople begin up-selling options such as upholstery protection. Extended warranties may be worth consideration, although today many standard manufacturer warranties extend to seven or more years. And remember that roadside assistance packages may be dependent on the vehicle being serviced by the manufacturers’ dealers.

When a final changeover price is agreed, time to check the paperwork and all detail (money owed, car model, colour and options, delivery date)  before signing any contract.

If getting finance, ensure the contract specifies ‘subject to finance’ in case those funds fall through.

On delivery of the new machine, take a good look over the vehicle.

Check off all the options, check the build plate and the odometer to make sure it’s an all-new car. Make sure you understand the car’s controls, check  any Bluetooth connectivity and the workings and meanings of any new-fangled infotainment screen and  digital graphics.

Have you lined up insurance before driving away? While Compulsory Third Party insurance (CTP) is part of a car’s registration in Queensland, the RACQ reminds buyers more protection may be needed. CTP insurance only covers personal injuries sustained by passengers in your vehicle, not at-fault drivers and other users. CTP Insurance does not cover damage caused to or by your vehicle.

Get comfortable behind the  wheel, check the fuel gauge (or  battery charge) and mirrors. Drive off with a smile.

Now, some buyers side-step all this business by using a car broker: a buying agent who, through their network of dealer contacts, sources the right car at the best price. Here, a customer should be close to 100 per cent of the essential details of the preferred vehicle to ensure a timely, and successful, hunt across  the country.

So, you still need to do the initial homework to decide on the right car, arrange finance and insurance. But a broker can find and complete a good deal, right through to registration.

The broker earns money from dealers’ commissions and can save hassles, headaches and dollars when buying a car … but it does take away some of those thrills and spills of a century-old process.