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step 1

Deciding how to buy

Let’s face it – there are many, many important decisions involved in buying a new car. Choosing make, model, paint colour come first usually, but early on in the process you should start thinking about how you’re going to pay for your wheels, so you don’t fall in love first, and have to make finance decisions based on emotion.

  1. Use your savings if you can

    Ideally, you’d be able to walk into a car dealership and pay for your new car outright using cash. Paying this way will save you a considerable amount in interest payments, and you’ll have the satisfaction of knowing the car is 100% yours when you drive off the lot.

    In reality, saving for what will be one of the larger purchases we are likely to make (after buying a home) can be tough. However, with discipline, focus, the right budgeting knowledge and a savings account that rewards your good habits, it’s definitely possible.

    Open a High Interest Savings Account online

  2. Buy faster with a Personal Loan

    Sometimes, even our best intentions when it comes to saving aren’t enough, and we need to finance our new car purchase. Whether you need to take advantage of a bargain price, or your old wheels are on their last legs, getting a New Car Loan can help you get behind the wheel sooner.

    Greater Bank Personal Loans offer competitive interest rates with no monthly fees, and are repayable over a maximum loan term of seven years. We also offer free unlimited redraws on your loan, and are able to approve your loan in as little as 24 hours (subject to meeting our lending criteria and the provision of documentary proof).

    Check out our New Car Loan

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Tips when buying

If you’re opting to pay for your new car with a Personal Loan, here are some things to consider before you start hitting the caryards.

  1. Check your credit rating

    Especially important if you’ve had a chequered credit history, or you’re a bit of a newbie when it comes to personal finance is knowing your credit rating. You can do this easily through an online credit checking service, and knowing your score may just let you avoid any unpleasant surprises when you find the car of your dreams.

    Your credit report will outline the last seven years of your credit history, including your past applications for credit, any bankruptcies or overdue accounts you may have had during this time.

    Find out how to boost your credit score

  2. Some help when negotiating

    If you’ve found the perfect car but think you may be able to get a better deal elsewhere, don’t hesitate to negotiate with dealers, and be patient. It’s your right as a customer to walk away – don’t feel pressured, and be sure to take some time to think if you need it.

    After all, if you’re buying with a Personal Loan, and can negotiate a better deal, this means a lower loan amount, and less interest you’ll need to pay in the long run.

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On-road costs

As well as budgeting for the cost of your actual vehicle, it’s important you factor in the ‘on-road’ costs associated with buying your new car. These are costs which you’ll need to incur to make sure your car can be legally driven.

Of course, you’ll need to register your new car, but on top of this, you’ll need to budget for:

  1. Stamp Duty

    A percentage of the purchase price of your vehicle that goes to the government

  2. Green Slip

    CTP or Compulsory Third Party personal injury insurance (applicable in NSW)

  3. New Car Costs

    You’ll also be up for number plates and dealer delivery

step 4

Getting the right cover

Your CTP is one thing – in NSW you won’t be able to drive off the lot without this in place. However, the level of Motor Insurance you opt for is up to you. Given that you’re entering into one of the largest purchases you’ll ever make, you may want to consider a level of cover to suit your needs and budget to protect your asset.

After all, no matter how good a driver you are, it’s impossible to predict what may happen once you’re out on the road.