3 tips for making the most of your car loan

Having a vehicle can sometimes seem like an absolute requirement for success in modern life. It helps you get to work, see friends, go on holiday – the automotive industry has had a huge representation for decades in Australia, and it’s clear we consider vehicles to be of utmost importance. The Australian Securities and Investments Commission tells us that we collectively spend almost $80 billion a year on our cars, while the average New South Wales resident spends about an hour and a half each day travelling, according to the Bureau of Transport.

With the majority of our travel time being spent in a passenger vehicle, choosing the right car can be an important factor in our enjoyment of the day. So, how can you make the most of your car financing?

1) Don’t rush into things

The last thing you want to do after achieving that financing is to waste it on a rash decision. Car yards or dealerships will sometimes offer you a car loan for the vehicle you are about to purchase. It may be tempting to seal the deal right then and there without any more thought, but you could find that you can get a better deal from us here at Border Bank.

Another thing to watch out for is salesmen or financiers trying to rush you into signing a contract, using phrases such as “this might not be here tomorrow” or referencing the dozens of other interested buyers they apparently have. As with all sales, if the person selling it is trying to rush you along, it could be that there could be something wrong with the car! Don’t be rushed, whether you’re looking for financing or during the final sale.

2) Spread your net wide

There is never only one place to buy your car here in Australia, but people often seem to forget that. There are plenty of different vendors who are going to be able to supply you with a car. Don’t just pick a single one and stick to it, take the time to research other dealerships or other private sales.

In a similar vein, you should also diversify your vehicle choice. While it may seem like a disappointment not to get your dream car, you might be surprised by how much you can save by taking a compromise. And it might not even end up being a real compromise – a recent Roy Morgan poll found that car buyers often underestimate how fun their vehicle will be to drive. Don’t judge a car by its bodywork, it might be able to deliver more than you think and not so much of a dent in your savings account.

3) Remember to haggle

Haggling is one of those dying art forms, simply because we don’t have to do it very much in Australia. For most purchases, we simply look at the price tag, decide if we can afford it and if so, pay it, if not, walk away. However, with vehicles, it’s a completely different world. If you are at a dealership, you will often find that the salesmen are working to a particular target – it could be a certain amount or a certain number of sales.

Use this to your advantage: you might be able to get some petrol vouchers or have them cover your registration if you are willing to help them meet their target. Of course, you can also haggle with the actual price itself, but sometimes coming at a more oblique angle can result in a better deal for you as well as the dealer – these kinds of deals often won’t affect their commission, which is exactly why they want to make that sale so badly!

Choosing the right car doesn’t have to be tough. Just remember to stick to your budget, keep a wary eye out for shady practices and give it your all in negotiation! Get in touch with a Border Bank Lending Professional today.