Purchasing a car is the second biggest investment you’ll make, after your house. Therefore, it’s important to do your research. Below is a list of tips from pre-approval to encumbrances to insurance;
- Plan ahead
- Check the vehicle
- The Big Buy
- PRE-APPROVAL: Arrange finance before you start looking at cars. Knowing you’ve been approved and that the money is on standby will give you the confidence to negotiate a better deal from the vendor.
- BUDGETS: When you are doing your budget, don’t forget those often overlooked expenses of running a car: registration, comprehensive insurance, servicing and tyres.
Check The Vehicle
- TEST DRIVE: If you are going to test drive a car, check that the owner has the vehicle covered by insurance. If buying privately and the owner won’t allow you to test drive the car, ask them to take you on a drive instead. This is the best way to highlight any inherent mechanical problems
- INSPECTION: Try to inspect the vehicle during clear daylight hours as this allows you to see the vehicle clearly. When inspecting the vehicle, check the ground for oil and other leaks. It may not be a problem now but could cost you dearly in the future. Alternatively you might consider requesting an independent mechanical inspection.
- PPSR CHECK*: To safeguard yourself when buying a private car, complete a vehicle encumbrance search (this used to be called a REVS check but is now called a PPSR check) to ensure the vehicle is not still owned by a bank or finance company.
- Check for the vehicle’s Registration Number, Vehicle Identification Number (VIN) or chassis number and Engine Number direct from the vehicle.
- Confirm these numbers match the ones on the Registration Papers.
- Contact the appropriate Vehicle Register in your state and provide these numbers.
- Buy a search certificate to confirm these details
Best Loans can conduct a FREE PPSR check for you if you finance with us – Call 1300-002-190
* Best Loans does not take any responsibility for information provided by any Government operated vehicle registers
The Big Buy
- DEPOSITS: Most vehicles are sold very quickly once advertised, so if you’ve found one you like, you should leave a deposit – $50-$100 is often all that’s necessary.
- CONTRACTS: When you sign the contract always sign with the condition that the sale is “subject to finance and satisfactory mechanical inspection.”
- CAR VALUE: In the emotion of updating your car, you may convince yourself to pay more than you should! Ask Best Loans to check that the vehicle you’re about to purchase is appropriately priced.
- NEGOTIATION: Except for auctions, most cars are advertised at prices well above their true value so don’t be afraid to bargain – you may save thousands.
- WARRANTIES: remember there is no 3 month statutory warranty on private purchases but we can arrange a mechanical warranty for you for private or dealer sales. There are conditions so call us for more information on whether your vehicle qualifies for warranty cover.
- INSURANCE: If you’re financing your car, be sure to ask Best Loans about including insurance in your contract. Not only will you be covered from the time you drive your car away, but it will most likely save you time and money. Comprehensive insurance is mandatory for a vehicle that is under finance. Some insurance companies do charge you extra to pay by the month instead on annually.
Buying a car isn’t always easy, but we’re happy to help make the process as smooth as possible for you, where possible. Apply online now or call us on 1300-002-190.