Things to consider when buying a car

DABAS Blog post:

Hello Readers, DABAS hopes all is going well for you. After 2020’s and 2021’s C19 lockdowns here in Melbourne, many people now may be thinking of updating their car. With that in mind, DABAS will share with you some general-in-nature tips that are worth considering when buying your next car, whether it is a MY22 or MY23 brand-new model vehicle, or a quality LMCT late-model used vehicle. If then you consider these tips before rushing in to purchase your next car may help you find a car to suit your personal life journey better, all whilst saving you money in the long run. The hypothetical examples and following points are broad generalisations. DABAS understands everyone’s budget, chosen car model variant, needs and driving styles can be different.

DABAS also has many other points to consider that expand on all this blog’s covered topics; we can discuss these points further upon your transition to becoming a DABAS client. DABAS hopes you find this blog article interesting and helpful for your car-buying journey.

Here we go: Car prices have dramatically increased since Covid 19 restrictions eased so you do need to have a good and realistic budget – daydreaming about that brand-new car or good-quality used car of your choice may be more fun than thinking about how you’re intending to pay for it. It pays – if you are not buying outright – to find out what finance options are available to you. How much of a deposit do you have to have saved up and how long will it take to finance and own your new car outright? Are you going to go with a monthly payment plan or take out a fixed personal loan? What are the financing terms?  How are the payments being structured: are they better off being put through your business?  on a tax-deductible method?  Is a business loan more appropriate for you? Is a leasing structure an option? DABAS suggests you chat to your accountant to see what finance package may suit you best.

Consider this tip: depreciation is a word mentioned by most potential car buyers when the following question is asked of them:  Ok, do you realise, that for the budget you were going to pay for a late-model used car, with a slightly larger spending budget you could buy yourself a good brand-new entry-level medium-sized car drive-away deal? (Pssst – at present, a mainstream model brand-new car can be cheaper than a very late model used example of the same model: there may be a time delay in production and delivery of your brand-new car though). Their next words are:  oh, but won’t it depreciate the minute l drive out of the caryard? Yes, this is true; a brand-new car can depreciate the day after purchase, but as you have just bought the car, you’re not intending on selling it anyway, are you? plus in today’s post-Covid world good late-model MY22 used car values are holding RRP, if not increasing above RRP. Generally most people, unless personal circumstances change, can – and do – keep a brand-new car for some time, until at least the new-car warranty nearly expires, which can be a timeframe of up to 7 years with included unlimited kilometres; by the time that runs out, the market will decide the car’s value, but you should be well in front of your other used-car choice of 7 years prior.

Keep in mind, a good used car from a LMCT can also depreciate the day after purchase.

Consider this tip: there is no such thing in 2023 as a cheap used car! In the long run, with the long-term running costs included, that $18,000 medium-sized used car with its factory warranty expired – as your used-car choice – potentially can leave you with expensive bills 7 years sooner than that $29,000 small- to medium-sized brand-new car on a drive-away deal with a 7-year unlimited-km warranty. To demonstrate, very briefly, the used car versus the brand-new drive-away car example; In January 2023; (without DABAS’s assistance) you buy a $18,000 drive-away LMCT used car circa MY14 with odometer at 98,000 km; you’re happy at the time – you think – a saving of *$11,000! (*compared to buying a brand-new drive-away deal entry-level small/medium car at $29,000). Then in January 2023 you pay for a year’s comprehensive insurance – consider – did you pay more than the brand- new car’s premium, which included a new-car for new-car replacement period? In October 2023 the registration is due = add est.$869 for 12 more months registration. In January 2024 at 110,000km the car is due for a service; this can be expensive, timing /belt/s? service the CVT Transmission? (Have you priced just the CVT transmission fluid per litre=$) How are the roadworthy? tyres, suspension bushes, brake-pads, disc brake rotors, brake fluid flush and change, filters etc. If it’s a diesel, how’s the particulate filter; that can be an expensive job. If it’s a certain model of German heritage, how’s the dual-clutch transmission? That can be a very expensive service job. The potential cost incurred now of the purchased used car plus the potential maintenance costs -equals? how long is a piece of string? – may? be more than a MY23 brand-new vehicle on a drive-away deal. Consider this tip: by late 2024-2025 how is the paint and car body looking etc, no hail/flood/fading/flaking/ touch-ups that have been exposed, shrunk, or cracked?

 

#It is also worth mentioning that in 2022, used-car prices increased dramatically due to the supply and demand issues brought on by the impact of C19; once the production and supply of brand-new cars becomes comparable to 2019 levels, the resale value of used-cars will also decrease very dramatically.

With some of – or all – the preceding points considered, you could have easily spent over the cost of that MY23 brand-new car that still has factory warranty left, plus the remaining capped price service schedule. Keep in mind, also, that a MY22 or MY23 new-car uses less fuel and will generally have much more safety-kit technology, including a better ANCAP rating, than similar slightly older cars. All the above could be worth keeping in mind when making your choice.

Consider this tip: the included advanced safety technology,

Very importantly the driver’s and vehicle occupants’ safety technology included in a MY22 or MY23 vehicle. Also consider the costs of insurances, maintenance, and servicing schedule timelines. Fuel type: diesel, LPG, dual, hybrid, electric, unleaded -E10, 95RON, 98RON, the ease of availability in your area of the fuel needed for your selected vehicle? Are there the additional included MY23 safety and comfort options in your brand-new car choices that benefit your lifestyle? Whilst keeping in mind the intended distance to drive regularly; car size to fit children and pets; roads driven – city, long distances, country driving, etc. There of course, are many, many more other points to consider when choosing between a brand-new and a quality used car: a lot does depend on your brand and model variant, as current and future servicing costs do vary between the popular brands you could select.

In the last few recent years, COVID-19 (coronavirus) measures have also dramatically slowed the official launch and production of many of MY22’s and MY23’s new models, which in some cases may create a delay in delivery dates. In short, if the date matters, make the LMCT purchase contract conditional upon a clearly specified delivery date.

When test driving a vehicle in today’s “new-normal post covid 19 restrictions” if you have any health concerns etc, don’t be afraid to ask the salesperson to stay at the dealership – or failing that – get them to sit in the back. You’re not being rude, just observing the social distancing recommendations previously advised in 2021 (do so also in the LMCT dealership). Ask these questions politely, remembering that LMCT dealerships and their staff may be facing the same personal C19 restriction recovery challenges as you may be experiencing.

So, “pending any 2023 Melbourne C19 lockdown restrictions” when the time comes to update your car for a safer MY2022-23 brand-new car – even maybe an EV? –  with a long warranty, or very recent late-model used car, perhaps a towing car or 4WD in the new normal post-C19 lockdown Melbourne, DABAS knows that buying a car to suit your needs can be one of the biggest purchases in your life. DABAS offers flexible personal assistance to clients on their car-buying journeys, tailored to suit their individual budgetary needs.

DABAS services can be delivered in a vast variety of ways, including – but not limited to – phone consultation/s, zoom meetings, research emails, research links, LMCT yard email link referrals, face-to-face meetings at a caryard/s, in the cafe at an LMCT caryard or even in your home if required. The choice is totally yours, pending personal needs and the urgency timelines of being behind the wheel of your next car. DABAS services are offered flexibly, as stages in a journey. You pick at what stage of your journey you may need DABAS’s assistance: maybe the full journey, or just vehicle selection/clarification, or maybe just providing a car-yard buffer zone and help with the yard process.

We hope this “general-in-nature information” page has provided some useful information to assist in you. By clicking on DABAS’s blog index link here you may find some guidance for your personal car-buying journey. The included highlighted links on this page may also provide other information that assists in selecting a suitable vehicle for your car-buying needs.

Whatever roads your life journey takes you on, DABAS can help you find a car to travel those roads.

Have a great day, Cheers, Tim.

Please note our disclaimer’s, as clients have individually tailored needs and stages on their DABAS automotive-buying journey, information mentioned on this – and all – DABAS blog pages is to be considered as a general-in-nature summary. Any vehicle pricing and advice on our pages is general in nature and can be discussed and clarified – if needed – relevant to the timeframe and date stamp of your transition to becoming a client of DABAS.

Please ensure – if applicable – you do go to your postcodes/relevant state C19 app for the latest information, restrictions, and advice on your applicable postcode’s current restrictions and current lockdowns that you may need to comply with, including your state government’s health department guidelines that are current at your time of reading this article.

In the last few years, COVID-19 (coronavirus) measures have dramatically slowed the official launch and production of many of MY22’s and MY23’s new models, which in some cases will also create a long delay in production, manufacturing, and customer delivery dates for some vehicles.