December is a great time to buy a new car as dealers look to boost sales towards the end of the year. The higher the sales, the more buying power the dealer has with the manufacturer - the result being attractive discounts or free upgrades for buyers.
BOQ Specialist has a long history of offering unique finance packaging to take advantage of new car price reductions in December. Here’s our checklist to help you secure a smart purchase:
1. Make a decision about your old car – trade it in versus private sale?
2. Do your research before you go to the dealers – know what you want
3. Be wary of test driving a model that exceeds your budget
4. Seek pre- approval from your finance provider so you can go in as a “cash” buyer
6. Reconsider unnecessary extras like paint protection, window tinting and leather protection
Helpful car finance tips
Once you have ticked all of the above off your list, you are in a good position to buy. In most cases it may work out better to arrange your own finance rather than going through the dealer. Here are some tips to help you avoid common car finance mistakes:
Compare the total monthly cost and not simply the quoted rate: Sometimes competitive quotes from brokers include terms and repayments “based on a banks very low rate”. This rate may be lower than other quotes, but when you work out the monthly repayments the effective rate can be much higher due to additional brokerage fees.
Be wary of fixed rate contracts with no break fees: Some dealers use the “Rule of 78” which results in interest being repaid first and capital thereafter. In this instance, if you break the contract early the outstanding capital is artificially inflated. Essentially you are not getting a fee-free break.
Don’t make a decision on the dealership floor: Buying a new car is an emotional purchase, making you vulnerable to the dealer’s influence and suggestion. If you really like a particular vehicle, you may consider speaking to a broker who will give you an unbiased opinion and help you secure the best price for your chosen model.
Think about your broader financial commitments: For every $30,000 of car finance you are effectively limiting your ability to borrow $91,000 against a residential property purchase.
More like this
Five top tips for buying a new car
For most working professionals, having a high-quality reliable car is a necessity. But the time and effort involved in purchasing a new car can often be quite off-putting, particularly for time-poor professionals. Luckily, there are a few simple things you can do to speed up the process of buying your next car.
Our car finance offering
Buying a car is all about a multitude of choices – colours, makes, optional extras and models. If a car gives you freedom of choice, why be limited to a car loan that doesn’t offer the same? At BOQ Specialist, we offer a wide choice of tailored car loan solutions and go to great lengths to give the financing that’s right for you.
The credit provider is BOQ Specialist - a division of Bank of Queensland Limited ABN 32 009 656 740 AFSL and Australian Credit Licence no. 244616 (BOQ Specialist). Terms, conditions, fees, charges, lending and eligibility criteria apply. We reserve the right to cease offering these products at any time without notice. BOQ Specialist is not offering financial, tax or legal advice. You should obtain independent financial, tax and legal advice as appropriate.
The information contained in this article ("Information") is general in nature and has been provided in good faith, without taking into account your personal circumstances. While all reasonable care has been taken to ensure that the information is accurate and opinions fair and reasonable, no warranties in this regard are provided.