Dealers are well aware of this. Not all, but many dealerships and salespeople aim to prey on this mix of excitement and uncertainty and can push you into a more expensive package than you might have first planned.
To help you search for a brand-new car, we’ve compiled a list of ten of our most important money-saving tips for car buyers.
With this list, you can approach the dealership with confidence and be ready for some of the pressing questions that might otherwise lead less savvy buyers astray.
Let’s take a look at ten of the best money-saving tips for car buyers here in Australia.
Ten Best Money-Saving Tips for Car Buyers in Australia
Research like you’ve got a PhD
While it’s not the most exciting tip to hear straight off the bat, good deals come to buyers who have invested some time in the research phase.
Specifically, you should be doing some market research not just on the car you’re interested in, but the wider segment and its rivals.
To help you out, we’ve done significant homework on your behalf and have a number of handy guides covering things like the cheapest seven-seat SUVs, safest cars for P-Platers, best electric sedans the best seven-seat hybrid & electric vehicles and most reliable SUVs on the market.
Compare Model Grades
Vehicles are split into a few different models, otherwise known as trim levels, variants or model grades.
You’ll find a base model, maybe a few variants in the middle and a flashy range-topper at the top of the lineup, with equipment additions made the higher you step up the range.
Manufacturers probably don’t want you to know, though, that more often than not, the base model will come powered by the same engine and transmission and the price difference can be massive between entry-level versions and flagships.
With this in mind, be sure to toss up which features are a must-have for you and your family’s needs and which features you might be happy to skip if you end up paying thousands for a select few premium touches.
Plate Clearances
Timing your purchase of a new car to coincide with plate clearances is a great way to save some serious cash.
Plate clearances can happen at any time, though they are most commonly promoted at the end of the year when dealerships are under some pressure to clear out stock to make way for a brand-new model year.
Typically, changes between a vehicle’s model year are minor. Usually, there are just a few extra features or paint options, but nothing that fundamentally changes the vehicle, presenting a great avenue for potential savings.
Strap on the Negotiating Hat
No matter what a car salesperson is telling you, there’s always a deal on the table.
It might be a little intimidating to start negotiating on price, but it’s important to remember that negotiating can prove a sport for many dealers - and they won’t be offended unless you’re being reasonable.
With a solid understanding of the market and that vehicle’s comparable rivals, you may well end up with a discount on the sticker price in order to get the deal secured - you just have to ask.
While popular car models might not have the wiggle room on the price you might have hoped for, that doesn’t mean the door is closed to extras like added accessories.
End of Financial Year Deals
Like many other consumer goods, car buyers stand to save thousands if they time their purchase right. We’ve covered this in a previous guide that you can read here.
Notably, there are many sales, including end-of-financial-year deals that buyers can capitalise on.
The short version is that many dealerships are incentivised to bump up their sales figures and clear out real estate on the showroom floor toward the end of the financial year, presenting an attractive avenue for car-buying deals.
Skip the Dealer Finance
Once you’ve found your dream car and you’re ready to pounce, one of the most impactful money-saving tips is to skip the dealer finance.
The convenience of securing finance at the dealership can come at a significant cost down the line, because you’re limited to a select few, if not just one single finance provider.
Investing some time ahead of your purchase and researching your best finance options means you’ll likely land with a more competitive interest rate and have a firm idea of your budget to avoid being up-sold on the dealer floor.
Time to go Hybrid?
With hybrid versions of best-selling vehicles hitting the market, ticking the box on a fuel-efficient version of your preferred midsize SUV or hatchback could save you thousands over time.
Better yet, hybrid vehicles often have a bit more pep in their step when accelerating off the line and can be silky-smooth on your average drive around town, making for a refined and cost-effective vehicle option.
Avoid the Easy Dealer Trade-in Option
Dealerships know that you’re excited about a potential new car and will happily organise a trade-in toward your next vehicle, though it’s worth keeping in mind that these often fall well below the market rate.
There is, of course, a price to be paid for all this convenience, but you need to be aware of how much that convenience should cost and whether you’re being lowballed for the vehicle you’re trading in.
While it requires more time and effort, selling your current vehicle privately or at least getting multiple quotes for your trade-in is a much smarter money-saving tip in this regard.
Deals on Demo Vehicles
Demonstrator vehicles, otherwise known in Australian lingo as a ‘demo’ vehicle, are used by the dealership for test drives, events or in-house logistics.
More often than not, a demonstration vehicle will have just a few hundred kilometres on the clock and is paired with a sizable discount if you’re willing to go down that path. If so, we’d recommend talking to the dealer about a complimentary first service as a gesture of faith in their treatment of the vehicle.
Use a Car-Buying Service
If you’re strapped for time and simply want the best deal without the stress, utilising a car buying service like OnlineAuto can be a great option.
Contacting an OnlineAuto car-buying specialist, for example, takes just a few minutes and will get you in contact with an industry expert empowered to help you find your preferred vehicle at the best possible price.
They’ll help organise a test drive and negotiate directly with the dealer on your behalf to find the best deal.
Better yet, OnlineAuto can also help you trade in your current car and even provide you with a range of competitive finance rates.
Request a Quote
If you’re looking to step into your dream car without the headache and at the best possible price, reach out to one of our car-buying specialists now.
Get in touch with one of our Car Buying Specialists today.
