We all need a form of private transport and if you normally buy used cars but have decided to take the plunge and order a brand-new vehicle at your local showroom, we take a look at the finance options.
- Dealership finance – Every car dealership has an agreement with a major finance provider and they can offer you a competitive deal with low interest rates. Most people go down this route as it is quick and convenient and you can take a 1, 2 or 3-year package. Some dealers will accept your old car as part payment, which depends on age and condition.
- Borrow from your bank – Rather than use a finance company, you can approach your bank for a personal loan. Of course, a lot depends on your history with the bank; if you are in regular employment and are not in debt, you should be approved for the loan.
- Novated lease – The great thing about novated leasing is you can bundle maintenance, insurance and fuel into your package and you pay an affordable monthly payment. This means you never have to worry about vehicle servicing, tyres or any other motoring cost, as they are all factored into the salary package.
- Save up and pay cash – Sadly, for most people, this is not an option, but there are a few determined folks that stash a little aside every payday, until that day finally arrives when they can walk into the showroom, point to the car and pull out a wad of cash!
- Online lenders – There are many online lenders here in Australia; with superfast approval, the funds are typically in your account on the day you make the application. Google can help you to compare loan packages and with terms from 12 months to 5 years, you can find a package that suits your lifestyle. Click here for a breakdown of a start-up loan.
- Vehicle leasing – This is an option for commercial entities; you can lease vans or trucks, which offers several benefits that you don’t get with regular finance. Talk to a business lawyer about vehicle leasing and they will explain the pros and cons. There are definitely tax benefits to leasing, plus you get new vehicles when you reach a specific mileage.
As you can see, there are numerous finance options when you want to buy a new car; dealerships are in competition and that is good news for buyers, as lots of add-ons and discounts can be found if you know where to look.
Take your sweet time looking at new cars, there are so many out there; sedans, hatchbacks, coupes, SUV and sports; check out the pro reviews on YouTube for any model you are interested in. Once you have narrowed down your shortlist to several models, take each one for a test drive and never forget that the salesperson does get a commission, so there is room for a little negotiation; it is not uncommon for a buyer to walk away with jackets, bags, caps, umbrellas, extra options and even a free tank of fuel!
