According to news reports, new vehicle registrations totalled more than 126,000 in 2014, with the previous record being 123,247 in 1984. In 2013, there were 113,294 recorded registrations. With New Zealand’s economy still looking buoyant for 2015, you might be one of many people looking at getting themselves a brand new set of wheels. Follow these tips to help the process run smoothly.
Do your research
Researching used cars can be pretty stressful – all those hours trawling through Trademe listings, viewing cars that don’t turn out to be quite how you imagined them and hoping you didn’t miss anything in your inspection. But when you buy a new car you can rest assured it doesn’t have a shady history of neglectful owners or car crashes, and won’t have any hidden damage or rust.
This assurance can make the process of buying a car much more enjoyable, but you should still check out reviews and get a good understanding of whether the car will meet your needs before you talk to a dealer. Don’t just look on the company websites – check out independent reviews as well.
It’s also a good idea to visit more than one showroom. Don’t let the salesperson pressure you into signing something straight away. You’re allowed to go away and compare prices. Ask them to give you a quote so you can shop around.
One of the major benefits to buying a new car is that you can pretty much have anything you desire (for the right price of course).
There’s no need to compromise on the colour, and you can add the features you want so long as you’re prepared to pay for them.
Your current budget isn’t the only restriction, though. Keep in mind that features that make the car stand out can also make them less appealing to potential buyers later on – the market for a car covered with pink and yellow polka dots is smaller than that for a classic silver shade.
Check the fine print
When researching what cars are available at showrooms, look out for wording that suggests some of the cars have accessories and features that will increase the price of the vehicle. If you just want the basic model, it’s good to know it actually exists. If the version you want isn’t there, see if they can get it in for you.
Before you agree to the price, be sure what it includes. Ask about on-road costs and delivery fees, and remember all of the costs are potentially negotiable – don’t just accept the first price they tell you.
Another thing to check is the year of the car. Even if the vehicle you’re looking at was approved for sale in 2015, it may have been built in 2014 – meaning it’s already one year old, even if it was only built a few months ago. When you sell the car further down the track, it’ll be treated as a 2014 model, which can influence the price you’ll be able to get for it.
Pay cash if you can
Let’s be honest, buying a new car is generally a bad investment. It will depreciate almost immediately, so you will likely end up owing much more money than the car is worth (plus interest). If you’re going to buy new, it’s best if you have the money already. That way, you at least won’t pay interest (or have your car repossessed if you can’t make the repayments later on).
If you do go for a loan, make sure you’re clear on how much the repayments will be and how much interest you’ll pay over the course of the loan, so you can make an informed decision about what is right for you.
Ready to head to the showroom? Check out what you should say when buying a car.