Breaking all the car buying rules

Where life’s major investments are concerned, the adage is buying a car comes second only to buying a house (or a Hermès Birkin bag).

It’s an emotional decision with significant dollars hanging in the balance, so do you listen to your heart or your head? Follow the crowd or go completely rogue (like a true fashionista)?

If experience is anything to go by, there may be tears, tantrums and credit card regrets in the pursuit of something unique. There are downsides to not conforming.

But perhaps there’s a middle ground that ensures you get what you want as well as securing a wise investment?

Let’s take a look at a few things new car buyers should consider before they fork out their hard earned on an emotional four-wheeled wildcard.

Family values

When baby number three arrived in January this year, Nick and Kate decided it was time to say good-bye to their Ford Territory and buy a new car.

The couple wanted a medium-sized SUV but it was time to graduate to seven-seats.

Here’s the catch though, they don’t necessarily want to conform to the homogenous styling of segment sales leaders; including the likes of Mazda’s popular CX-9.

“It’s got to look good, and not like everything else. It’s hard to find a car that doesn’t look like all the others” commented Nick.

With unique style a top priority, their shortlist includes the Skoda Kodiaq and Peugeot 5008; the Peugeot in particular regularly gaining accolades from motoring.com.au for its stand out looks and unique interior design.

Far from blinded by style, however, Nick and Kate understand the perils of buying against the trend.

“[We’re concerned] resale value won’t be there, as they are not your big name brands” said Kate.

There’s no denying this is an emotional purchase for Nick, Kate and their growing family.

So just how much weight should resale value carry in choosing a car? How many people truly think about resale value as they’re about to drive away in their first brand new car? And how do you measure a car’s true value, anyway?

The Value Equation

Ross Booth, Data Services Director at Redbook.com.au, Australia’s foremost provider of specialist data to the automotive industry, says factors such as demand, supply and perception all come into play.

“If all we valued was future value and fuel prices, we’d all be driving white Toyota Camrys” says Booth. And nobody wants that! [Ed: except Toyota!]

Booth agrees that a car should be a reflection of your personality, but suggests you do your research and know what you’re getting into.

Where second-hand cars are concerned, Booth adds that ultimately, what determines the prices is what someone will pay for it. Simple, really.

Sounds a lot like the formula that drives unfathomable discrepancies in property market prices, right? Now there’s an emotional minefield.

Adrian Wood, Property Partner with real estate industry disruptor The Agency says: “In reality it [emotion] is a huge component given a property is so much more than shelter, its where relationships are started, kids born, raised, etc.

“Once a buyer has engaged with the property and sees their future/families future, then they are more likely to stretch financially and move things around to be able to buy.

“Ultimately though budget will always be the end factor.”

Budget is definitely a good starting point when it comes to cars. And if you can wait, timing can sometimes get you a better deal.

It’s called ‘faaarshun’: emotion in motion

When style matters, emotions usually run high. Appearances count.

The truth is, Nick and Kate can’t wait to ‘have a car that people like and talk about in a good way!’

But what are the rules of emotionally-charged buying decisions… There’s no clear answer on Google - send help Siri! No wonder we get all het up. Perhaps we should be consulting our stylist?

Stylist to the stars and fashion royalty, Lana Wilkinson, says your personal style choices should almost 100 per cent be determined by your emotions. So why should you car be any different?

On the topic of trusting your emotions versus chasing trends, Wilkinson says: “Fashion is used as a form of self-expression which has the power to boost confidence and ultimately empower you.”

Driving a car that stands out has much the same appeal, we reckon.

But still, what are the rules? How much is too much?

“Don’t alienate the everyday person with an over the top avant-garde driven collection,” says Wilkinson.

Designs that polarise the market will naturally limit the potential buyer pool when it comes to resale time.

Even the colour you choose plays a part, Booth confirms.

Of course there are exceptions – if you’re selling that much sought after, limited edition, never to be seen again automotive gem... Then the supply and demand equation may just work in your favour – even if your car is Nardo Grey!

Dollars and sense

More than a Birkin but less than a house, there’s some flex when buying the car of your lifestyle and budget-hamstrung dreams.

With a budget of up to $60,000, both Skoda and Peugeot present a strong package for Nick and Kate, ticking many of the style, safety and technology criteria they’re chasing… And all in a seven-seat platform that’s not too big, not too small, but just right.

Redbook’s Booth warns about the risk of buying outside the usual suspects.

“If you’re going to buy a challenger brand [like Haval for example], it won’t hold its value as strongly” says Booth.

And then there’s the ongoing cost of ownership to consider; warranty and after sales support. This is something not enough buyers take the time to factor into their overall buying decision, says Redbook’s numbers man.

At the same time, Booth talks up capped price servicing plans for the extra transparency they bring to the market.

“There’s no doubt Kia’s seven-year warranty has helped it to change perceptions in the brand. But perceptions are built over generations. The warranty takes out the risk factor compared with a car that doesn’t have a long warranty. That period from three to five years is really important,” cautions Booth.

When analyzing the aftersales support offered with your potential new car, be sure to look at the warranty period 9months v kms traveled), roadside assist programs and service plans (suggested intervals and capped price options). On top of this there’s the question of dealer networks and parts availability.

“Because stuff happens, we’d always recommend to have an extended warranty,” says Booth.

Information is power

Thanks to the carsales.com.au network we can all be desktop experts – but that’s only one piece of the puzzle. Do all your research and understand the implications of going against the trend.

Stylist Wilkinson brings some perspective for the style-conscious buyer, reminding us that ‘fashion isn’t permanent’.

“So if you make a mistake, you can change your look and try not to make the same mistake again.” she says.

If only it was that simple with a new car.

Ultimately, you should buy the car you love. But like any good relationship, go forward with a full understanding of what you’re getting into. After all, who are we to tell you who to love?

At this point Nick and Kate are still looking…

Top Tips for buyers straying from the pack
How long are you planning on keeping the car?
What is the after sales support — will it cover your intended ownership period)?
Know the market via research on redbook.com.au and carsales.com.au
Tame your emotions — but don’t ignore them
Choose the car you love and need — but understand the potential risks