Tips on buying your new car at the right price

As we all know the total cost of a car (new or used) doesn't always stop at the price tag.

With new cars there is a trend towards advertising the "drive-away" price but many advertisements still put 'dealer preparation charges' in small print at the bottom of the page which can add to the overall price you will pay.

The following check-list will help you calculate the real cost of purchasing a car:

  Purchase price
  Dealer preparation charge (new cars only)
  Registration/transfer fee
  Stamp duty
  Compulsory third party insurance (CTP)
  Car insurance (ideally comprehensive)
  Fringe benefits tax (if applicable)
  Other immediate expenses (new tyres or battery, next service due)
  Additional options required (alarm)
  Extended warranty (optional)

One way to ensure your new car doesn't hit the hip pocket too hard is to set an overall figure you are prepared to spend before you start shopping. If you need finance, pre-approvals are a great way to ensure you purchase a car you can afford and stay within a pre-determined price range.

For more information on buying or financing your new car, Customs Credit Union has a free booklet to help you through the car buying maze. "Wheels" is filled with lots of helpful advice and checklists to help you make the right decisions, download one NOW!