Articles by CarsGuide team

Registration, fuel, insurance, roadside assistance and general servicing are the mainstays to consider.

When it comes to cars, 'green' is becoming a more commonly used term but what does it mean?

You know you need (or want) to buy a car.

A pre-purchase inspection is an absolute MUST. You should always conduct a mechanical inspection before you hand-over your thousands of hard-earned dollars, and it’s advisable not to do this yourself.The point of the pre-purchase inspection is to confirm you’re not getting a dud. It’s to confirm the car is going to run, today and into the future. Your mechanic will investigate the engine, radiator, battery, exhaust, tyres and body.They’ll check for oil and coolant leaks, battery issues and poorly done modifications. You need an expert eye on this because even the shiniest car can come with hidden problems under the hood, and usually they’re expensive to fix.Here’s what you should run your eye over before you test-drive a car. This is not a substitute a professional mechanical inspection and you should always seek expert advice.Think of this list as early warning signs - a red flag. If any of these issues present themselves, skip the professional inspection and move on to the next car.Oil indicatorsOil can tell you a lot about the engine, so check it. If you pull the dipstick out and the oil residue doesn’t reach the ‘full’ marker, or it looks thick and black, this is a sign that the car has not been maintained well. If you look under the oil cap and find gritty carbon deposits there too, you can be sure there has been some engine neglect.LeaksLook underneath the car. Look at the radiator. Look at the hoses. Are there any signs of leakage? Cracking? Corrosion? If the answer is yes, there’s a good chance you’ll run into some of those hidden problems we mentioned about. Smoke from the exhaustTurn the car on. Have someone rev it a few times. Is there smoke from the exhaust? Can you smell anything in the smoke? Either would be bad. Usually, a smoky exhaust indicates an oil-burning engine, which tells you there is a problem to be found.Who can do my pre-purchase inspection?All you need for a good vehicle inspection is a qualified mechanic. The big car and insurance associations (like NRMA and RACV) usually provide this service at a reasonable price, or you can take the car to your regular guy, or hire a mobile inspection service. Just do an online search for ‘pre-purchase inspections’ and you’ll find plenty of options. 

There are many benefits of buying a car from a licensed dealership – warranties, trade-in, guaranteed title, expert advice, after-sales service, detailing and convenience to name a few. While the pros certainly outweigh the cons, we’re all too familiar with the ‘dodgy dealer’ stereotype. Look out for these tactics (or tricks) when dealing with dealers.Financing falsehoodsIf you’re relying on the dealership for finance, a fairly common (and unethical) practice is to close the sale of a car before the financing process is complete. In some cases you’re allowed to drive your new pride and joy home, only to get a call the next week to hear the financing has fallen through. This is the perfect time for the dealer to step in with a solution - a new financing option, at a much higher interest rate. At the very least, do not get in the driver’s seat until all financing has been finalised.Bait and switchThis is one of the oldest tricks in the book. Dealers will advertise a specific model at an surprisingly low price to get you to the dealership. When you arrive to inspect the car you’ll find that it has ‘just’ been sold. ‘Lucky’ for you, the dealer has a whole range of options that are much better, anyway (and likely much more expensive).Unfortunately there’s not a whole lot you can do about this. It may help to email the dealer and get confirmation the car is still available in writing, but really it’s no guarantee you won’t be given the same ‘just sold’ story others get. The best response is to recognise this play for what it is and take your business somewhere more transparent.Monthly payment focusMost dealers like to get you thinking in terms of monthly payments, rather than total costs. It can make the unaffordable seem within reach. But some dealers will take it to a dishonest degree.An old-school tactic for guiding your attention towards monthly payments is the ‘foursquare sheet’. This is simply a piece of paper divided into four: one for the new car purchase price, one for the down payment, one for the monthly payment and one for the trade-in price of your car.Usually, with this sheet of paper comes some rapid-fire calculations and explanations, and a whole lot of extra costs will be shuffled into your purchase price -- all the while, keeping your eye locked firmly on the monthly repayment.Changeover confusionSomething that works well for dealers is leveraging whatever discount they offer you directly off the value of your trade-in. You get a great price on the new car, but get a lot less than expected for your old car. Or vice-versa. You’re offered a great price on your old car, but pay sticker price on the new car.It can be difficult to keep track of, but if you’ve done your research and know the approximate value of the car you’re trading in, as well as a reasonable price you’re willing to pay for the new car. It’s basic maths but in the excitement of car shopping simple concepts can seem confusing.Take the new car price, and subtract the trade-in amount. The number you get is your changeover cost (new car price - trade-in price = changeover cost). Be sure this is all you end up paying.Time-sensitive dealsNow’s the time to buy! Only for today! Another buyer has gone to organise their deposit and will be back soon!Creating a false sense of urgency is another old trick from the salesman’s handbook. If a deal is good now, it will most likely be good in three hours, or twelve hours. Don’t buy into this attempt to force your hand. Take your time, get your quotes matched at other dealers, and assess your options with a cool head.All the extras you’ll never needPaint protection, fabric protection, rust-proofing, floor mats, cargo trays, scuff plates, hands-free Bluetooth, reverse camera, parking sensors - the list of extras dealers will offer is endless. Don’t get roped in to paying the inflated prices and nudging up your finance by buying from your dealer. You can pick up an equivalent accessory at your local warehouse or automotive super store.  Delivery fableOften popular models require a wait. It could be months before the new stock hits our shores and dealers inventory is replenished.If this is an issue for a few dealers, it will be an issue across the board, but occasionally you’ll find one who tells you they already ordered it, a few months back and it will arrive in a week or two. They’ll say ‘it’s yours if you pay the deposit’.So, you’ll give him the deposit. A week later they’ll tell you the delivery has been delayed, and it won’t arrive for another 8 weeks or so... around the same time those other dealers were getting theirs in.Demo models: New or used?Demonstration models will only have a few thousand kilometres on them, but don’t be fooled: they’re used cars. In some cases, they’re already part of the way through their warranty period. Don’t pay full price for these. They should be priced more closely to used cars than new ones.

There are two main tactics for price negotiations. The first is to walk in with your offer, and then walk out. The second is to low-ball them, then build incrementally towards your true offer.The best way to negotiate is to refuse to negotiateAs long as you’ve done the work leading up to this moment (ie. you know your price, you’ve organised your finance and you know what you want), don’t negotiate. Just tell them what you want, tell them what you’ll pay and give them your number. Then leave.You have to be polite, but firm. Time your visit well (close to the end of the month, around 4pm on a Sunday might work). Be confident but authentic. Dealers can sense a weak resolve at a distance.HagglingYou know the price of the car you want. Estimate the figure your dealer is likely to accept. Offer something a little lower than that number. Say, 5% lower. Sometimes, the dealer will say yes. Almost every time, they will smile and say no. This is when you ask for their best price.What happens next is telling. If the dealer feeds you the sticker price, it’s probably time to walk away. But if they deliver a counter-offer, it’s time to haggle. Be clear (with yourself) on the price you’re driving at.Raise your offers in small and specific increments, no greater than $500 at a time. After some back and forth, if you’re not getting what you want, say you need to consult the other-half, parent, sibling, mate, etc. and offer to come back in a few days.Leave your phone number. You might get a call before then.Things to keep in mind…There’s always a better deal. Dealers know that someone, somewhere is going to sell you a car for the price you’re asking. It’s the reason we negotiate – and it’s also the reason you should negotiate with multiple dealers at one time. As with most things in life, getting a bargain is a numbers game. The more offers you have out there, the more likely you are to strike gold. Walk away. This can’t be emphasised enough. If the dealer won’t come down to your price, walk. Like we said, there’s always a better deal. Don’t lock in to a negotiation when it’s clear from the outset you’re not going to get what you want. 

You’ve researched the options, test driven your short-list and decided on the perfect make, model and feature list. You’ve found ‘The One’ and you’re ready to sign your name and collect your keys.You’re almost there. All that’s left to do is negotiate the price. As long as you don’t give off the wrong vibes at the dealership, getting a great deal shouldn’t be hard. To help you prepare for the ‘business-end’ of the transaction, we’ve put together a list of things you shouldn’t say when talking numbers.“I can spend x amount each month.”You should have already settled on the absolute max you can spend – the total price that you’re willing (and able) to pay. Keeping this number firm in your mind will spare you the trouble of misleading talk around monthly payments, which are an easy place for dealers to hide thousands of dollars over the life of a loan.Just make sure you don’t talk about (or think about) your car payments in monthly instalments only. Go with the big picture, the total amount, and you’ll be less vulnerable to overcommitting to finance you can’t afford.“Here’s my budget.”One of the first questions a dealer will ask is what’s your budget? You don’t necessarily need to tell them up-front what you can afford. If you do, you open yourself up to spending the entire budgeted amount, even if you could have got the car for less.All you need to do is discuss the specific models you’re interested in, discuss the market values you’ve seen and discuss the options that are available to you. The dealer will make an offer eventually, and that’s when the power dynamic shifts in your favour.“I want a car and need finance.”It’s best not to discuss financing, or even trade-ins, until you’ve settled on a price for the car you want. Have credit or quotes ready to go before you set foot in a dealership. This allows you to haggle a bit with the dealer, even giving them a chance to match (or better) the terms. If they know in advance you’re relying on them for cash, and can see you’re hooked on the car, you’ll be taken to the cleaners.“Honey, what do you think of this?”If you’re buying with your spouse or partner, discuss and decide on what you’re after before you hit the dealership. If anything unexpected arises and requires discussion, speak about it in private. You don’t want to show your hand when it comes to uncertainty or overenthusiasm - this can weaken your negotiating position.“I LOVE this car. I NEED this car.”Once the dealer knows you already have your heart set on a car, and there’s no chance you’d walk away from it, you have no leverage. None. No free upgrades, no special interest rates, no rebates, nothing.“I don’t really know what I do need and what I don’t need…”If you genuinely don’t know what you need, run away from the dealership as quickly as you can and take a step back. You need to spend some time defining your needs and researching your options.If you’ve gone through all the recommended research steps, thought through all your options and tried the ones that stuck out for you, then rest assured you know exactly what you need. Remain firm in your decisions - as soon as the dealer smells uncertainty on you, he’ll start pushing whatever he needs to sell first. And he’ll push hard. 

For most people, buying a new car can be overwhelming. There appears to be a million things to consider. We can get you sorted in just five easy stages.Stage one:  What are your needs? What kind of driving do you do? How often? Who do you have to take along? What are you budgetary limits? What can you afford? This is the stage where you take stock and start to think about your profile as a driver, and your thresholds as a purchaser.Stage two: Start looking at what’s out there. By step two, you already have a very clear picture of what your needs are (you’ve also thought through the pros and cons of buying used or new and the pros and cons of buying from a private seller or dealer) so you don’t have to look at every single car on the market - just the select group that loosely fit your needs.Stage three: Marry up ‘your needs’ to ‘what’s out there’… Start drilling down into specific models—first, you’ll research them, discover their quirks, and then you’ll begin making a short-list of your best finds. Stage four: Find ‘The One’. You’ve done all the legwork, now it’s just a matter of finding the one you’ll call your own. This is when you test-drive a few of your favourites, narrow it down to a few options, and then pick the winner.Stage five: Keeping the car happy and healthy until the day you find yourself asking the question… is it time for a new car? 

Once you have an idea of your car needs, it’s good to sit down and work out a budget. How much can you afford?Before talking finance with anyone, you need to work out what you can realistically afford. When you’re caught up in the excitement of buying a car, you can quickly forget the reality of having to pay back a large sum of money.How much do you want to spend on a car? Focus on the total amount, and work backwards. Think about the annual payments and your overall balance. Then, break that down into weekly or monthly instalments. Look at your current income and expenses, then figure out where those regular payments will be coming from. Is there wiggle-room for covering your running costs, insurance, roadside assistance etc.? Is it feasible? Start investigating options for finance. Refer to the bigger numbers you came to earlier, and revise them down. Having these numbers plotted out in advance is important, because it should prevent any heat-of-the-moment decision-making you can’t afford.You can find a great deal on the car you want. There’s no reason for you to be stuck with an unmanageable loan and the risks that come with it.The world of financeThere are a few different avenues for financing your car:Personal loans - A personal loan allows you to borrow a one-off lump sum and make regular, set repayments. You can typically spread your repayments over one to seven years. The longer the term, the smaller the size of the regular repayments you make (but you’ll pay more interest). Personal loans can be secured or unsecured. A secured loan just means you can use an asset as security against the amount borrowed, which lowers the risk from the lenders perspective and (usually) reduces the interest rate while increasing the maximum amount they’ll consider giving you. You can sometimes secure the loan with the car you’re buying. Car loans - Using your car as security allows the lender to seize your car if you default on your loan repayments. Car loans usually require that some criteria be met… For new car loans (which often have lower interest rates than used car loans) the car will need to be brand new and purchased from a dealer only. Used car loans vary more widely by lender, but you’ll often find that the car can’t be older than 7 years and there will effectively be a minimum price you’ll have to pay for the car (the loan will need to meet a minimum amount). Each lender is different, so be sure to ask about these things before applying. Credit cards - If the amount you need to borrow is not going to meet the minimum required for a car loan then credit cards can be a good option. They often have low interest rates and many come with set interest-free periods. Car lease - A car lease is a bit like renting a car for a period, with the option to buy it at the end of the lease for a residual - that is, a value or percentage typically agreed up front.The last piece of advice we will give is to always read the fine print. Always.

Working out when to buy your new car can be one of those grey areas. Does it really matter? Or do you start shopping as soon as you’ve made the decision it’s time to buy.In the car-market, there are predictable, seasonal sales; lifecycle events for individual car models; and then there are other opportunities driven by the state of the economy.Some people need to make a purchase as soon as possible. And that’s fair enough. But for those of you who have a little time up your sleeve, waiting for a sale can mean cash in your pocket. The end of the financial year EOFY sales are huge in the car industry with June the biggest month for car sales. Car buyers can take advantage of dealers wanting to clear the showroom floor and push their profits over the line by 30 June.February and MarchFebruary and sometimes even March is when last year’s models start to feel ‘old’.  The end of the calendar year leads buyers to think cars that were considered shiny and new just two months before are now officially ‘outdated’. By February there are newer models with the new years’ build plate, and people want them instead. That gives car buyers some leverage in negotiating a lower price or getting some upgrades thrown in.Christmas and New YearSimilar to February and March, Christmas run out sales focus on moving current year models out of dealerships in time for the new-year models coming in. You can get some great deals and salespeople are usually pumped up, ready to sell everything. As a buyer, you can be doing your dealer a favour by taking stock of his hands that in the next few months won’t be as appealing.Model updatesIn the same way a car can be shiny and new in December but outdated by February, a superseded model can go from shiny and new on Monday to outdated and bargain-ready on Wednesday.When the updated model arrives on the floor, even if there is no significant change between the two vehicles, the previous model takes a big hit. For the car shopper this is a perfect time to negotiate a deal. If you’re aware of the release cycles of models you like, you can use this to apply pressure when working out a price.Basic economicsFinally, there are a couple of things that you don’t need an economics degree to work out.Supply versus demand – if supply is high and demand is low you are in a good place to talk discounts. Car sales down – when car sales are down in general because ‘x’ applied downward pressure ‘y’, but interest rates are low and salaries are high, dealers are going to run a sale to remind people they like buying cars.  When the Aussie dollar moves – when AUD values fluctuate from a good place to a bad place, and stay there, dealers will eventually push prices up to cover the increased cost of importing the vehicles. If the dollar is on its way down, move quickly.