When it comes to personal milestones, purchasing a new car is an exciting and satisfying experience, whatever stage of life you may be at. Whilst buying a new car represents a considerable financial outlay, there are many other contributing factors that should be taken into consideration too. Financial responsibility isn’t only limited to the manufacturer’s cost- but extends to added extras, running costs and of course, car insurance.
Before embarking on your search, you should make it a priority to sit down and calculate exactly how much you are willing and/or able to spend on your purchase. You’ll be better off sorting this out before you even set foot in a car yard. Having a clear budget in mind will help you narrow your search, decide on what features are important to you and what you can expect to get for your money. It is a good idea to incorporate all potential costs into your budget at this point as well, so you know upfront the implications of exceeding your limit even by a little.
It is extremely worthwhile to shop around and compare quotes from different dealerships. Be sure to obtain a breakdown of the monthly repayments within each quote, this will help you later on. Speak with each salesperson about upcoming sales, last year model discounts or special offers on added features, like metallic paint or road side assistance. This will put you on the front foot when negotiating a good deal with the salesperson at your next dealership.
It is also worth noting that often, the advertised price ‘drive away’ may not include all of the features/ extras you might expect, so be prepared for the quote you receive to exceed the advertised amount. Obviously, the need for added extras or inclusion of special features will depend on your requirements as a driver. How often you will use your car, how far you will be driving, and where you will be driving are some key factors, and it is important to prioritise these by their contribution to the overall cost. For example, if you are required to travel reasonable distances on a weekly basis, purchasing a hybrid car with high fuel efficiency will reduce your weekly running costs. In this example – this could represent a larger initial outlay, but save you money in the long term.
Another expense to consider when buying a new car is the cost of car insurance. After investing time into searching for the right car and comparing deals across a number of dealerships, you may find it helpful to look into comparing car insurance quotes using online comparison sites like Insurance Hotline (Canada), Compare The Market (USA) and iSelect (Australia). Using a comparison service website allows you to input your personal requirements, current situation, age, location, and desired level of cover, and then matches these requirements with the products available across several insurers, eliminating the need to ‘shop around’ for isolated quotes.
The other benefit of a service like this is that it is tailored to your personal needs, and you’re able to pin point exactly which features you feel are important to pay extra for- and those that may not be suited to your needs which, if excluded, could reduce the cost of your insurance.
Every car insurer operates differently, so while the cost of premiums may vary, they will most likely be covering different things. In general terms, the inclusion of additional coverage options like new car replacement, choice of repairer and market vs. agreed value will often increase the cost of your premium. The best option is to select a policy that is tailored most closely to your individual needs, as the most expensive cover may not always be the most comprehensive or suitable, and the cheapest option may not cover you for things you may need in the future.
All things considered, when purchasing a new car- preparation in key. Making sure you’ve done your homework and know what you’re looking for will ensure the process of purchasing your new car is as rewarding as driving it home from the dealership.