In the current low interest rate environment, rarely been a better time to invest in your business by acquiring plant and equipment including motor vehicles. Whether you’re buying a vehicle for business or private purposes, here are some tips when buying
1. Educate Yourself
In order to get a good deal, you must first know what a good deal is. This requires doing some research to find out what incentives specific car manufacturers are offering. We recommend searching sites like racq.com.au or redbook.com.au as well as the manufacturer’s website to educate yourself on current car prices, reviews, financing, and more.
2. Decide Which Car You Really Want
While it’s easy to be tempted by a great deal, you should make sure the car is actually the one you really want. You need to be able to see yourself driving it for 3 or more years. This will prevent you from making an impulse buy and a very expensive regret or mistake. Importantly, customers who ask a salesperson for “the best price” on 3 different cars are never taken seriously. So when it comes to striking a deal, know EXACTLY what you want before talking price.
3. Get a Pre-Approved Loan
It’s also a good idea for your financier to arrange finance in advance of your purchase. A preapproval is usually good for 60 days, which should be plenty of time to find the car you want.
4. Negotiate the Whole Package Together
There’s nothing worse than thinking you’re getting a good deal at first, only to find that you’re not getting the trade-in price or incentives that you expected. You should insist the dealership gives you the final cost after all these things are added in before you commit.
5. Leverage Supply and Demand
Most brands have moments of the year where they have too much stock of a particular model. Look out for those periods where a manufacturer is heavily advertising a particular model – it usually means they have more stock than they would like. Likewise this can apply to individual dealers. You might get a price from Dealer A who only has 1 or 2 of your model available but Dealer B has 10 – usually making them more flexible on the final price.
6. Make Dealers Compete for Your Business
When you’ve decided on the car you want, it’s a good idea to contact a handful of dealerships and ask each one for their best price. Letting them know you’re talking to other dealers will start a bidding war, which will drive the price of the car down. Just remember each car you’re looking at has the same features so they are comparable.