Five steps to buying your next ride

1. Do your research

By research, we mean that you need to understand all the aspects and pitfalls of becoming a car owner. Ask yourself real questions like: Can I afford this car? Do I really need that double cab to drive to the shops and back? What are the pros and cons of diesel compared to petrol? What are the maintenance and insurance costs?  Do. Your. Research! This is a number one step for a very good reason.

Sure, that SUV looks cool, but if it's going to strain you financially, is it really worth it? This is a time to really keep your impulses and emotions at bay. Stay calm, ask the right questions and be clear so that you don't get on the wrong side of your bank.

2. Create a budget – a real one

If you don’t know the difference between net and gross, get someone to help you. This is where the rubber really hits the road. Your budget needs to accurately reflect your financial situation. You need to know that you can cover the repayments, insurance, maintenance, registration, repairs, tyre changes, petrol, etc.

There’s a lot to think about when buying a car and the math isn’t pretty for most of us. Be realistic, get what you need and, most importantly, get the car you can afford.

3. Consider buying a pre-owned vehicle

We know it won’t have that new-car smell and the showroom people won’t put a big bow on the bonnet, but a certified pre-owned vehicle is a great way to buy a good car for way less than a new one. You can get older, higher-spec models of the same car for a lot less than a newer one.

4. Inspect the car like you’re Sherlock Holmes

Treat that car like a crime scene by looking for any clues that might signal bigger issues. Every ding, scrape and scratch has a story.

There’s no such thing as “just a flickering light” … some minor detail might be pointing to a bigger issue. Do not let anyone rush you while you’re doing your inspection. Take your time. Check everything. Ask as many questions as you need to about the age of the vehicle, its service history and so on. Remember, any issues you discover, however small, could give you a bit of leverage in the price negotiation.

And then, of course, take that car out for a test drive. Really test it. Does it make a noise on the highway? Are the uphills a slog? Is the acceleration smooth or jerky?  Put it through its paces (no white-knuckle stuff, but you get the idea).

5. Secure finance

Once you’ve done your research and found a car you can afford, you need to consider how you will be financing it. First, you're going to want to try to put down a good deposit. Remember, debt is bad. You want to reduce that loan amount, which lowers the interest amount.

Aim for a 20%+ deposit – more is better. A deposit shows you mean business.

Besides the banks, dealerships also offer finance. See what’s on offer and take the best deal.

If you’ve applied half of what’s mentioned here, you’ll be driving out of a showroom in your new or newish, reasonably priced car and into a lifetime of stress-free motoring.

If you would like to play around on our vehicle finance calculator click here.

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