How to buy a new car

The local new car market is already bouncing back from the economic woes of 2020, meaning now is the ideal time to purchase a new car.

All the car companies plan their model inventories months and even up to a year in advance, so many are overstocked, and they’re anxious to get new-car inventory moving again.  On top of that, the federal government is bending over backwards to help businesses write off new vehicle purchases with immediate effect.

It's been said often in the past, but as far as capital purchases go, the car is second only to the family home. It's expensive. Even a basic light or micro hatch represents a substantial chunk of disposable income -- particularly if the buyer is a young person in their first job and being paid subsistence-level wages.

There's a lot riding on making the right choice then, but the good news is this: You're not alone.

Before you enter into the thrust and parry of negotiation, which increasingly will be via an online medium, take a look at what's available to you. Many prospective buyers have little idea in advance of what will suit their needs, but there are plenty of resources at carsales.com.au including our New Car Showroom to help you settle on the type of car you need (and want).

Start with the class of car. Do you need room for a family? That would suggest you need an SUV. Are you buying for looks and presentation? Maybe a sports car then.

Does the vehicle transport the family at the weekends, but it fills the role of a workhorse during the week? That need is pointing you in the direction of a large SUV or a dual-cab ute.

Ask friends and relatives who are car savvy or educate yourself via a site like carsales.com.au. If you don't know that much about vehicles, the advice of others could be invaluable.

You can rely on redbook.com.au to help filter the candidates, even down to price, fuel economy, seats, towing capacity, et cetera. Once you've compiled a list of three or four prospective vehicles, research each one by reading our reviews. The more information you can read – from a range of sources – the better informed you will be.

While it's important to know precisely what the buyer is getting before signing on the dotted line, buying a car doesn't have to be that hard.

There are numerous resources, not limited to just carsales.com.au either, to learn whether you're making the right choice. Questions you'll want to ask concern the brand of new car you're planning to buy, for instance. Is it a well-regarded name? Does the model enjoy strong resale value and a reputation for reliability, comfort, safety, and so on?

Take care when you're buying to time your negotiations for the best outcome, like during the end of financial year sales, for example.

When you're buying, make sure you select the options that are more popular. The automatic transmission is a 'must-have' unless the car being purchased is a sports or performance model.

Finally consider how you are going to pay for your new car and make sure you have finance options if you are not paying cash.

Even if the dealer is offering low-interest finance, you may wish to shop around.

Have you seen the car you want, and it meets all your needs?

The next step is to make an enquiry at a dealer selling that type of car. This can be done by clicking on the 'Enquire' button for the vehicle listing at carsales.com.au. Fill in your details using the online form and a staff member at the nearest dealer will be in touch with you to discuss things like whether you have a trade-in, whether you want to arrange finance through the dealership and whether you would like to take the new car for a test drive.

There's no need to move fast; you can take your time making your decision and committing to purchase. The staff member from the dealer may not even be a sales person, he or she may be a concierge. Learn the lay of the land from concierge or sales person; request a brochure be messaged or mailed to you, and ask about pricing and future plans for the model, including any retail incentives (everything from those free floor mats to finance at zero per cent interest).

The concierge is there to serve you, the customer, without any hard-sell, arm-twisting tactics. A good concierge will arrange an at home test drive or brew you a coffee while you flick through the brochure if you physically attend the showroom to see the car at this early stage.

If you're not yet ready to buy, let the staff at the dealership know when you will be. That adjusts their perception of you: 'not just a tyre kicker; needs some nurturing to get across the line'. It means that you can have a sensible conversation, ask questions and leave the topic of money off the table for the time being.

If you're ready to buy 'soon', say so. It helps the sales staff to know that it's worth keeping in touch with you if the particular model you want is suddenly available with a factory rebate, for instance, or with discounted drive-away pricing.

Leaving your phone number or email address with the salesperson or concierge is a gesture of commitment on your part, but they will have your contact details from the carsales enquiry form anyway.

The vehicle to be tested may need to be brought to your door and the salesperson, practising social distancing, will likely sit in the back, or hold your licence while you drive the car alone.

Subaru was already offering home visits like this long before the coronavirus pandemic.

Dealers generally prefer you do things in a specific sequence. After the lock-down lifts, the dealer may ask that you bring in your trade-in and take the demonstrator for a drive while your machine is being valued.

Things you might consider when testing the car include:

Another point too: Don't just 'drive' the car. Also consider packaging, safety and things that might be deal breakers. Apple CarPlay and Android Auto connectivity will be important to many prospective buyers. Others will want the full gamut of driver-assist safety technology.

And does the new car have a full-size spare tyre? You don't want to get home and then find it has just a tyre-repair kit in the boot, if that's important to you.

Hopefully the dealer will allow you to take a longer test drive to ensure the car is what you want. If you've already had a chance to drive the car over a prolonged period and you are definite that it's the one for you, then the five-minute test drive at the dealership should be little more than a formality.

After that, the negotiation begins and, hopefully for all concerned, the outcome is a successful sale – all on the same day, or a day of your choosing for maximum haggling effect.

For more information concerning the best deals, discover 'new car deals' from your favourite brands inside 'new car showroom' on carsales.com.au: