Saving Money Tips - Buying a New Car

A new car sounds lovely doesn't it? Imagine the purrHave better things to spend my money on
of the new engine and the looks you will get as you- I do have a lot of other important items on my wish
drive down the road in the latest model of yourlist; a new fridge, high school fees, reduce mortgage,
chosen car. However, we also know that the newetc
model of today will be the old superseded model in theWork may provide a vehicle
not too distant future and that the value of the car will- Work may offer me a car as part of my package
go down very quickly.at my next salary review
So with this in mind we really need to be careful when3. Then you need to carefully look at both lists and to
considering whether or not to buy a new car.analyse all of the reasons you have written down
Before rushing off to the car yard, you should grab out- How important is the reason you wrote down?
a large sheet of paper and write up the top "Do I really- Look through your list and decide which reasons you
need to buy a new vehicle?" Then let the brain cellshave written down contain something that is a must
take a journey and come up with all of the reasonshave - this might be for safety reasons or security
that you can to justify going out and getting a new car.- Be careful here and very honest with yourself with
Underneath this, write down all of the reasons towhat you consider to be absolutely critical
justify why you shouldn't go out and buy a new car.- Look through your list and decide which items you
Here are some ideas to get you started and somehave written down is a nice to have but something
common reasons that people write down:that you could do without - this might be a gadget or
1. Reasons to buy a new carfeature of the car that isn't absolutely critical
Car too small / big- Take the time to rank each item from 1 to 10 in level
- Starting a family and need more roomof importance
- Can't fit in all of my gear- Look through your list of reasons not to buy a new
- Can't transport all of the kids and their friends aroundcar. How strong and valid are these reasons?
- It is just us now so we don't need such a large car- It is important that you spend a decent amount of
- We are going away so we need more leg room andtime doing this exercise and that you are somewhere
storage capacitynice and quiet where you can really think about
No air conditioningyourself very carefully. This exercise could save you
- It is just so hot each summer we bake in our carthousands of dollars!
No air bags4. As part of your analysis you should now spend time
- The car has never been fitted with air bagslooking for alternatives. Start with the items that are of
Lacking accessories (stereo / cd player / gps)highest importance to you.
- We need to have a cd playerCar too small / big
- Some new vehicles have an in built GPS so we- Consider hiring a trailer
need one too- Consider hiring a car for the holidays
- The stereo is broken so we need to replace the car- Clean out your car and see what space you then
Costing too much money to runhave
- I am always spending money on this carNo air conditioning
- The car always seems to be at my mechanic- Check out the cost to have this fitted to your current
Need to look good at workcar
- My car is a status symbol of my wealthNo air bags
- My boss would look down on me if I didn't drive a- Check out the cost to have this fitted to your current
new carcar
- Having a new car will portray a message to myLacking accessories (stereo / cd player / gps)
clients that I am very successful- How much will it cost to have one fitted
Too old- Can you use a portable cd player / stereo
- My car is x years old so it needs to be replaced- How much is a portable GPS
- I have had this car x years so it is time for an- Can you make do with the radio
upgrade to a new modelCosting too much money to run
- This model is old, I need the newer model- Work out how much your car has actually cost you
Petrol guzzlerover 12 mths
- I am always putting fuel into this car- Seek a professional opinion on the vehicle from your
- I checked my credit card statement and boy my carmechanic or local automobile club
is thirsty- Look carefully at how you treat your vehicle. Are
- I used to put in $x of fuel a week and now I amyou causing some of this cost?
putting in $y- What about your driving habits? Is this the cause of
Running too fast / slowcosting you money? Ie heavy braking or is your foot
- I can't keep up with every one else on the roadtoo heavy on the accelerator
- My foot is almost flat to the floor and yet we hardlyNeed to look good at work
seem to be moving- You can still look good in a later model vehicle
- If I don't sell this I am going to do damage to- Talk to your boss about being provided with a
someone as it just zips off so fast I can't keep incompany car when you need to entertain clients
control- Talk to your boss about hiring cars / taxis when you
Want security of a new vehicle warrantyneed to entertain clients or travel
- I do a lot of travel for work and I want peace of- It seems pointless trying to look wealthy by owning a
mind if something was to happennew vehicle if it is causing you financial grief and
- If the car is under a warranty I won't have to spendhardship. You will not be successful in your career if
any money on ityou spend all day worrying about how to pay your bills
No longer road worthy- Consider that a new car may put some clients off -
- The mechanic said the car isn't road worthyyour services may appear too expensive or that you
- I don't think the car would pass a road worthy testdon't value money as you spend it on unnecessary
Want to keep up with the Jonesitems that decrease in value
- My friend has just purchased one of these new carsToo old
so I want one- How old is too old? There are some decent vehicles
- The neighbours have just purchased a new car soon the road that are 7-10 years old that are still running
we should also buy oneperfectly
I have been offered a good trade in- Who states that there is a set time frame that you
- The new car sales man has offered me a goodneed to replace your vehicle
trade in- What will the newer model provide you with that
- I want to trade now whilst I can get good value foryour current car doesn't provide you with
my current carPetrol guzzler
I want a diesel vehicle- Look at how much running around you are doing and
- I want to change from petrol to diesel as I heard it iswhether or not you can seek alternatives such as car
more fuel efficientpooling, doing multiple tasks whilst out
I need a ute / 4wd / sedan- Has your car been serviced recently? You might
- I want to change from a sedan to a utehave a problem with your car that is easy to fix that is
- I need to trade the ute for a 4wdcausing the extra fuel consumption
- I need a 4wd for my upcoming holiday- Consider how much the price of fuel has risen
- I need a ute so I can shift housesrecently. Is this the real reason your petrol has
2. Reasons not to buy a new carincreased
Can't afford it- How much of the fuel bill on the credit card contains
- The repayments will be too highother items such as food and drink that you bought at
- It is a lot of money for me to spend on a carthe petrol station?
- The loan will take me 7 years+ to pay backRunning too fast / slow
Don't really need a new car- Has your car been serviced recently? You might
- I am being silly, I don't really need a new carhave a problem with your car that is easy to fix that is
- There are other things I need ahead of getting a newcausing this to happen
carWant security of a new vehicle warranty
Old car is going well- Understand what is offered under the warranty
- My old car works just fine- Consider having road side assistance from your local
- I can always get from A to B so what else do I needautomobile club in case of break down
Too expensive- Keep your vehicle regularly serviced
- Although it is new, I feel it is still very expensive- Travel with a mobile phone so you can call for help in
- There is a big gap between 2nd hand cars of 2-3the case of an emergency
years to the price on these new carsNo longer road worthy
Will drop in value too quickly- Get a couple of opinions on the road worthy status
- I have heard as soon as you drive a new car out ofof your vehicle from a mechanic or your local
the show room they drop significantly in valueautomobile club
- 2nd hand cars seem like a much better alternative, I- Establish how much it will cost to get the vehicle road
have seen they are much lower in valueworthy
Expensive on-road costs and stamp duties- Seek a professional's opinion on this matter
- When I buy a new car I will have to incur extra feesWant to keep up with the Jones
such as on-road costs and stamp duties. Aren't these- Why why why, do you need to keep up with what
costs in the thousands?someone else is doing?
Insurance will increase- Be an individual and live your own life and not those
- When I get a new car, I know my insurance premiumof others
will increase significantlyI have been offered a good trade in
Young family- A trick / marketing strategy for selling new cars is to
- I don't know if my kids will look after a new car orlure people in by offering a high trade in
treat it well; they are always banging the car doors into- You either get a high trade in or low purchase price -
thingsit generally doesn't happen that you get both
- I know that kids are kids and it is hard to keep a car- Is the salesman playing around with figures?
nice with them around