June is the most popular month of the year to buy a new car, so if you're about to invest in one of life's most expensive assets a few preparatory steps may save you thousands of dollars.
According to the Federal Chamber of Automotive Industries, June is consistently the best month for sales of new cars, with 112,566 vehicles sold in June 2012.
Community CPS Australia says the lure of end of financial year sales can be strong and consumers can easily get swept up in the excitement of shopping for a car.
This is particularly so during big promotional sales, but Community CPS's general manager distribution in the NSW Hunter Valley, Ray O'Brien, says doing your sums first can result in savings.
"Sorting out your finances before shopping around helps clarify what you can afford," he says.
"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."
O'Brien says while dealerships may offer finance packages with appealing interest rates, consumers should always check the fine print before signing a contract.
But before heading for the caryards, consumers should consider:
THE RESEARCH
Consider the kind of car they are after and read reviews to narrow their choice down to the model that best suits and most appeals.
Also consider things like running costs particularly fuel consumption, insurance and service costs.
Check around on the internet and see what other prices are being advertised. If you find the same car cheaper somewhere else, it can give you useful bargaining power.
THE DEAL
Trying to bargain with salespeople can be more difficult during sale periods and promotions, when cars have already been marked down, but it may be worth trying to haggle. The dealers are keen to sell, and may shift a little on price-or add in some extras - if they think they're going to lose you.
When buying new, always check the VIN to make sure the build year is what the car is claiming an earlier build year takes value off the car.
Also check that the official specifications of the car match what is being advertised in the image. Different wheels, for example, can be worth less.
THE LOAN
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? Can you make extra payments?
Read the fine print, particularly with highly promoted low rate loans-is it available for a limited time? Is it only for new cars?
Consider all the expenses, not just the cost of the car -- Explore a few loan options
Source: Community CPS Australia
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