Buying a new car
With new brands entering the market all the time (while some depart), safety and entertainment terminologies being updated, and the emergence of alternate powertrain options – such as plug-in hybrid and full-electric vehicles – would-be new-car buyers can be left with their heads spinning just trying to keep up.
Simplifying the process can be done by distilling it to some core considerations. Before you get lost in the whirlwind, ask yourself these simple questions.
What type of car do I need?
Your first consideration when looking at a new car should be what it needs to do. If the car is going to be used on a day-to-day basis and not live in a garage between Sunday drives, practicality should be at the forefront.
Do I need an SUV or 4WD?
The popularity of SUVs has risen substantially over the past few years. They provide flexibility and are great for young families, however they can also be overpriced and unnecessary when more economical options cover similar bases.
Buyers should think twice about an SUV purchase, especially when it's a 4WD as running costs can become a burden. There are other vehicles on the market that appear smaller but have a similar luggage capacity, allow for child restraints and have a larger capacity engine.
Do I need a high-end vehicle?
Prestige, luxury, sports and exotic cars have obvious appeal to some buyers. With their status, performance, limited availability or other features, they often wear much higher price tags than more mainstream vehicles, however these steep prices don’t stop after they’re driven off the lot.
Insurance, depreciation, specialist workshop requirements and cost of replacement parts can all add up over the life of a vehicle, and are all inflated for prestige vehicles. Simple consumables like tyres and brake pads or fluids and filters can bring exorbitant costs upon owners just to keep their cars running.
If you don’t need what the car is offering – or if you’re not educated about the cost of the vehicles over your ownership – it might be best to go for a less premium model.
Should I get an EV?
We have a lot of resource pieces to help buyers decide whether an electric vehicle (EV) is right for them.
An EV may be more suitable for some buyers than others. Considerations such as access to at-home or public charging, kilometres driven per week and whether you do a lot of towing will all factor into whether your next car should be electric.
Work out your budget
A car’s recommended retail price is just one cost factor that buyers need to consider, but there are many others faced over the ownership period of a new car.
Insurance and maintenance costs
The cost to insure a vehicle can change substantially based on the suburb in which it’s parked, whether that’s on the street or in a garage, how often it is driven, and even the driving records of nominated drivers.
It’s possible that two cars with a similar RRP can end up costing different amounts to insure based on the risk of a crash, theft or damage the car presents, so it’s best to get a few insurance quotes for each model that makes your shortlist.
Maintenance can be the same, with some brands carrying more infamy than others for significant and costly maintenance costs. A wise move is jumping on some internet owners’ forums and seeing how used examples of the model you’re looking at has held up over time.
Capped price servicing and warranties
All new cars must be offered with a warranty thanks to consumer law, but the terms and duration of these can vary between manufacturers.
As boring as the fine print may be to read, buyers should familiarise themselves with the warranty terms for cars they’re considering purchasing.
Further to this, servicing costs should also be taken as an ongoing. Many new-car warranties are void if the manufacturer’s servicing schedule is not adhered to, with some brands offering extended periods if you keep the car within their own service networks.
Look at real-world consumption figures
Manufacturers will generally list a consumption figure for their vehicles based on quite stringent test conditions, but there are not always truly indicative of real-world consumption.
For petrol and diesel cars, this figure will be represented as a L/100km measurement, meaning how many litres of petrol or diesel the car needs to consume to travel 100km; in an EV, this will be kWh/100km, meaning how many kWh of energy the car uses to travel 100km.
By reading up online, or looking at new-car reviews such as those written by our Open Road team, would-be buyers can see much more realistic consumption figures and know what to expect at the pump or charger if they do end up buying the model.
Is a new generation coming?
Car models are sold in what’s known as ‘generations’. Generally when a vehicle enters a new generation, it has received significant upgrades, re-engineering and new design, however this is not always the case.
Run-out stock of a model’s previous generation can slash thousands off its sticker price, so it’s worth doing an apples and apples comparison to see exactly how much has been changed in the updated version to see if the difference in price (and added wait time) is really worth it.
