How to Buy a Car: Top 6 Tips to Buy New Cars details the top six things new car buyers don’t investigate, but should:
NEW CARS: BUILD DATE
A listener of mine on Radio 2UE in Sydney put a deposit down to buy a new car in January 2015. It turns out the new car – a Suzuki S-Cross – was actually built in 2013. The compliance plate went on in 2014, and the new car was set for delivery in 2015. Disaster. Get a discount on your next new car if you’re actually buying old stock – last year’s model – because you are certainly going to pay for it at trade-in time.
NEW CARS: SPARE TYRE
When you buy a car, check the spare tyre. Space saver spare tyres are one of the car industry’s great, enduring frauds. They are of absolutely no benefit to you on a new car. They’re limited to 80km/h, and they don’t grip the road very well. Always investigate your intended new car’s spare tyre, at the dealership, before paying a deposit – and sometimes you can negotiate to fit a full-sized spare when you buy the new car. If it’s critical to the new car sale, the car dealer might even throw it in for free. If you only ever drive 15 or 20km from home in suburbia, space-savers are probably OK. But if you get out on the highway, even occasionally, don’t risk your life by buying a car with a space-saver. They’re a joke.
NEW CARS: LIGHTS
You don’t normally test drive new cars at night, right? But there are two things you really should check here: outside the new car, you need to know whether the headlights – and in particular the high beams – are adequate. Some new cars are just anorexic in the high beam department. Again, not so important if you only ever drive in the city, or suburbia. But very important in the country.
Inside the new car, the reverse applies. Dimmers on instruments are great for driving in isolated areas at night – you dim the instrument lights down to maximise night vision out there on the road ahead. Very important. But the big, fat centre LCD display often doesn’t dim sufficiently (or at all) for night driving.
NEW CARS: DEPRECIATION
There are two ways to lose money on a car. You can pay too much for it up front, or the depreciation can burn you at the back end of the deal.
OK – all cars depreciate, but some depreciate like Dresden on the ides of February, 1945. A classic example here was in last month’s Ford Territory review – which Ford fans hated, principally because it’s such a lemon. Mechanically as well as on the depreciation front. It pays to do your homework on depreciation – and here, past performances are excellent indicators of the future.
NEW CARS: UPDATE TIMING
You don’t want to buy a nice new whatever, and see the manufacturer upgrade it four weeks later. Even a mid-life upgrade is a bit of a disaster because a) it usually comes with more standard equipment at the same price and b) the one you bought – the suddenly ‘old’ model – becomes instantly obsolete and its value takes an immediate hit.
You need to let your keyboard do the walking here: google the car you want and keywords like update, upgrade, plus the current year and the next year. Find out what’s going on in the near future.
NEW CARS: FIRE SALES
Here’s what the car industry does with its marketplace dogs. When all else fails, and sales have flatlined, the manufacturer bends over and drops its pants. Every time. They fire-sale the price in an attempt to prop up or stimulate sales. Generally unsuccessfully.
Holden dropped its pants on the latest Cruze and Commodore, and Ford has just played the same undignified card with the Territory. Although none of them put it like that in the press releases…
So I guess that’s good news if you desperately want a Cruze, a Commodore or a Territory… Of course, if you actually bought one of these marketplace lemons a few months earlier, guess what happens to the value of your car? It just evaporates. Desperation discounting by manufacturers slashes the same amount from the value of the lemon you own – because used car prices vary directly in line with replacement cost.
So there you go: Six things you probably weren’t considering while you’re poring over the specs and the pretty pix of your possible next new vehicle.