Before you fork out tens of thousands of dollars, or sign up to a car loan, on a new head-turning set of wheels with all the latest bells and whistles, it's important to do your research. You'll want to research the market to determine a vehicle suitable for both transport and lifestyle factors.
Practical purchasing criteria including the number of seats, doors and engine size can help you narrow down the endless number of choices on the new car market, as well as provide a guide to the amount required to be financed - if you do not have a significant amount of savings to pay for your new vehicle up front.
1. Price & Running Costs
Arguably the most significant factor to consider when purchasing a car is its purchase price. The prices of vehicles varies far and wide, with some worth their designated sticker price, while others leave plenty to be desired.
Within model designations, there are further sub-variants based on trim levels and engine options. Some may hold their value more than others, and when buying new, some dealers may offer more flexibility on price on some models but not for others.
Price accounts for more than simply just sticker price, as it is beneficial to factor in running costs, insurance and maintenance. Be sure to conduct your own research and check the price of servicing, spare parts and insurance before buying to avoid any costly surprises.
Additional costs that may factor into your budget calculations include registration, dealer delivery charges and stamp duty. Generally dealership new or used cars will likely come with registration included, however the stamp duty or transfer duty will vary based on the requirements in your state or territory.
If you're looking at a novated lease you'll also want to be aware of the tax benefits on offer. While not a direct cash benefit, the savings come in a roundabout way via lowering your tax burden.
It's important to remember price doesn't always equal value - as not all vehicles cost the same to maintain. For instance, if your vehicle becomes damaged or suffers a breakdown that wasn't a result of an accident, you may be forced to pay expenses out of pocket as insurance may not cover these incidents.
In addition you'll also want to consider loan costs if you are applying for one. Below is a selection of some competitive loan options.
2. Lifestyle factors
Price aside, lifestyle factors remain one of the most significant when determining the type of car that meets your current and future needs. In fact, it might even trump price depending on how sensitive you are to budgetary concerns.
By asking yourself the questions, 'What will I be transporting?' and 'What terrain will I conquer?' you can look to narrow down your choices based on the total number of passengers you will be carrying immediately and later down the track, the amount of storage on offer and whether the car will simply be used as a city run-about or whether it will hit the beaten track on the odd-occasion.
Other lifestyle factors to consider include towing capacity, navigation and the inclusion of features such as Apple Car Play and Android Auto that can help make long drives easier with integrated podcasts and navigation.
If you have kids you'll also want to consider things like rear seat room for car seats, and tether points such as ISOFIX to make car seat installation easier.
3. Reliability
Determining which brand of vehicle to buy is another key factor to consider when navigating the car market. Your previous experiences with a particular car manufacturer can play a significant role, given brand loyalties have the ability to run deep and shouldn't be ignored at purchase time.
However, not all models under the same brand come from the same source meaning it's worth researching the various brands and models to avoid buying a lemon. Generally, Japanese manufacturers are considered most reliable, Koreans just under that, and Chinese, American, and Europeans less so.
However that doesn't mean you should shy away from a car from a certain nation - your devotion to regular servicing, preventative maintenance and good ownership habits can determine how reliable your vehicle will be. And of course, there's the off chance you're delivered a lemon straight out of the box.
Generally if you've had a positive ownership experience with a specific manufacturer previously, chances are it is likely to happen again - however you should not base your purchase decision solely around this factor.
4. Safety
When buying a vehicle, safety should be amongst your top priorities. If the unfortunate happens and you are involved in a crash, regardless of who's at fault, your choice of vehicle could make the world of difference. Generally, newer vehicles provide increased protection in a crash and include a range of active and passive safety features and technologies.
An easy rule of thumb is, 'Buy the safest car you can afford'.
To compare vehicle safety ratings, you can check your preferred vehicle's safety rating through Australasian New Car Assessment Program (ANCAP).
By law, all new cars sold on Aussie roads should come with a 5-star ANCAP rating, however there can be mild swings within the 5-star rating system.
5. Fuel consumption and emissions
Fuel is hands down the vehicle expense you will pay the most regularly with the purchase of a new car. The mere act of using your car is drying up the fuel tank, and most people would fill up their cars every couple of weeks or so.
It's important to consider whether the car runs on unleaded petrol, diesel or even electricity as all three come with significant costs. New cars are required to come with a fuel consumption label, detailing the vehicle fuel consumption per 100km alongside CO2 emissions.
6. Warranty
New car warranties can vary significantly depending on the vehicle manufacturer and dealership. At the time of writing Mitsubishi currently offers the leading new car warranty in Australia for a total of 10 years or 200,000 kilometres. Importantly, Mitsubishi owners who wish to receive the benefits of a 10-year warranty must also undergo regular servicing through brand dealerships for the full decade.
Hyundai and Kia also offer 7-year warranties, while most other manufacturers offer 5-years.
It's important to note the manufacturer warranty generally doesn't preclude you from using your own mechanic for servicing and repairs. An optional extended warranty or dealership warranty might come with the requirement of servicing your car through them however.
Another factor to consider with electric vehicles is their battery warranty. Most EV batteries are costly and will need to be replaced at some point, so you'll want one to come with a generous warranty to cover it.
Product Recalls
It's a relatively rare event, but it does happen - especially with the advent of complex electric vehicles and hybrids. If customers experience a lot of issues with one aspect of car ownership, a manufacturer might put out a product recall.
This means it's wise to head to that manufacturer's dealership to get it fixed or have your vehicle checked over. How a manufacturer responds to product recalls and the dealership footprint and experience can bear weight on your ownership experience.
Photo by Hyundai Motor Group on Unsplash
