10 tips for buying a new car.

1. Buy a car at the end of the month or at the end of the financial year

Plan your purchase, but don’t sign on the dotted line until near the end of the month. Many car dealers operate on monthly sales targets and may be more likely to offer discounts and free extras around this time to help meet their targets.

You can save a lot by purchasing a car during the EOFY car sales. The automotive manufacturers and dealers offer special deals and also throw in optional extras worth thousands of dollars for free.

2. Be serious about safety

ANCAP safety ratings are no joke. These ratings determine how likely an accident is to injure or kill you, and the differences between safe and unsafe cars are enormous.

More importantly, it can also affect the cost of car insurance. If you’re after a more cost-effective drive and you want a safe vehicle, avoid settling for less than a 4- or 5-star ANCAP rating.

3. Do your homework on the car you want

Learn about your chosen car's typical drive-away price before you buy, as well as which extras are tacked on and how much these are really worth. This gives you a baseline against which to haggle and consider “free” extras.

It also lets you determine how much haggling room is left when you’re quoted a price. You probably won’t get a good deal if you don’t take this step and if you do, how would you know?

4. Know the haggling dos and don’ts

• Do keep your expectations realistic. You probably won’t haggle much off an already-discounted price.

• Do keep it friendly and polite. Good manners go a lot further and sometimes a deal simply comes down to how much they like you.

• Do leave your phone number, even if you walk away. They might come back to you with a better offer.

• Don’t be afraid to walk away. If they’re not budging, find someone who will.

• Don’t try low-balling them unless you’re ready to climb back up the price ladder.

5. Make dealers compete with each other

A lot of dealers might turn down an offer without hesitation, but would accept the very same offer when asked to match a competitor’s price. There’s always a better deal out there somewhere and dealers know it. Try to be in touch with more than one dealer before buying and let them compete for your business.

Know what car you want? A Car broker could save you money

With an established network of dealers, a car broker can source the vehicle you want and negotiate on your behalf to save you money.

6. Always do a test drive

There’s no substitute for a test drive. If you’re still deciding between different cars or models, test drive them all if possible. Never buy a new car without test driving it first.

7. Beware of unwanted extras

Dealers are always ready to generously throw in extras for free or at cost, to sweeten the deal. Think about the extras you actually want before buying and try to resist walking out with something you didn’t want.

Some of the extras you almost certainly don’t want are an extended warranty, rustproofing and paint protection. A new car already has all of these in some form and these extras are often just a sales trick.

The cost of car insurance changes a lot depending on what you’re driving. Common new cars, even the latest models, are often cheaper to insure than one would expect thanks to the availability of spare parts. Meanwhile, cars that don’t have more recent safety features such as auto braking or traction control, or cars with a poor ANCAP rating, can be considerably more expensive.

8. Check the fuel consumption

Check a car’s fuel consumption with the yellow sticker on the windscreen. This allows you to you to compare efficiency between vehicles and can give you a reasonable idea of what the car's operating costs might be.

9. Make sure all the boxes are ticked before you buy

Check off these tips before buying for better luck finding a deal, but when the pen’s in your hand and the dealer is salivating over your shoulder you should ask yourself whether you have:

• Understood the terms and conditions. Make sure you know exactly what you’re signing up for.

• Been to multiple dealers. If you haven’t, then you’re almost certainly not getting the value you could be.

• Know what is and isn’t included. Be certain that you aren’t paying for unwanted extras and that you won’t be missing anything.

Your new car will need CTP insurance, and if you’ll be depending on it you might want to consider comprehensive car insurance instead of one of the more basic options.

10. Compare all your loan options

If you're planning on using a car loan or other form of finance to purchase your car, it pays to do your research. You have a lot of options when it comes to car finance, so it pays to understand how they differ, and what makes a loan more competitive than another. Along with the banks, many dealers offer car loans, and it's important to compare both to find the one that bests suits your needs.

Article from www.finder.com.au