Choosing a car is about what you need, not what you want. Furthermore, how much you’ll pay depends on the car you buy.
Working out a budget before you look at cars will make buying a car easier and ensure you don’t waste anyone’s time.
Once you understand the market value and know what model you want, you are ready to go hunting. And there are also many ways to lower the final bill.
With RightCar, you can look up to more than 500 makes and models to get their expected fuel cost per year and safety rating. This government’s site has made running costs available, free of charge for many models.
These rules usually apply to running costs:
- Smaller engines are most efficient for town use and cheaper as they use less fuel.
- Usually, petrol cars are cheaper to buy than their diesel equivalents. Diesel engines are more economical as they tend to use less fuel than the same petrol counterparts.
- Manual gear cars are cheaper than automatics, although automatic cars are more fuel-efficient than the manuals. This fuel saving could be reimbursed over time.
- Although electric and hybrid cars are cheaper to run, they cost more to buy upfront. Sticker prices fall as more of them enter the New Zealand market. Soon, there’ll also be a resale market.
If you have a dealer, there’s a right time to buy a car. It’s best to aim for the end of the month as salespeople have sales targets to reach. Or, at the end of the quarter — mid-March, June, September, and December — dealers will want to move cars and maximise sales.
Also, visit on a Monday or a Tuesday for a quiet dealership to negotiate better than a weekend.Can You Really Afford That Car? Click To Tweet
One-year-old cars are cheaper than new cars. Say, a new 2017 Toyota Corolla GX lists around $31,000. In 1 year and with 10,000 – 15,000 KMs on the odometer, it costs around $20,000 – $22,000. That’s a 35% reduction and tails off yearly as the car ages.
This is depreciation, and most Korean and Japanese manufacturers follow this rule.
This also applies to luxury manufacturers — BMW, Mercedes, and Porsche. However, compared to their Japanese counterparts, these manufacturers tend to keep more of their value.
Upfront and ongoing are 2 types of costs involved in buying a car. Upfront is the purchase price, while ongoing is everything else – from Warrant of Fitness (WOF) to insurance to parking fees.
First, you’ll need to pick the car you want before you add up the costs of a new car. Start with any major purchase and look at reviews.
Your car insurance cost depends on the car and your driving history. Age and size also factor in.
A small European car will be more expensive to insure than a bigger Japanese car because of costs to repair and parts.
So, if you want to spend less on insurance annually, a popular car with cheap parts will be cheaper to insure.
Do you need funds to buy a car? Do you want a quick and hassle-free process?
PPL processes unsecured loans online during business hours on the day you make the application. As long as it’s received before 8:00PM, you’ll be able to get the funds on the same day.