Getting a New Car at a Low Cost
At Jade Car Loans we meet all types of car buyers. There are those that are true car enthusiasts who know what they want, will go to great lengths to source exactly the manufacturer and model and may spend a long time sourcing exactly the right vehicle.
There are also buyers that view a car as a means of transport. A way to get from A to B, usually home to work, or do the school run and errands. Buyers who want, to some extent, the cheapest car possible that is still good quality and has the safety features but is not going to break the bank.
In this article we’ll share our tips and hints on how to purchase a new car on a budget.
Low-Priced New Cars
You might be thinking ‘cheap’ but really you mean ‘inexpensive’ or the lowest price-tagged cars. When it comes to low priced new cars in Australia, you’re probably looking at around the $14,500 -$15,000 minimum price range and sneaking up to around $17,000.
We’re talking rough figures of course and based on advertised market recommended dealer prices. But at that price point you can get a good quality 4 door car which does have room in the back for more than your small children, handbag, brief case or gym bag.
When it comes to new cars, size does in some way determine price so most cars in the lower price brackets will be smaller cars. Here’s a few to check out:-
- Mitsubishi Mirage – a basic but functional city drive with good credentials.
- Honda Jazz and Honda City – moving into a smaller sedan in some eyes.
- Suzuki Baleno, Ignis and Swift – this manufacturer covers sporty and sedate.
- Kia Rio and other Kia models – a number of options in the lower price bracket.
- Skoda models – not as well-known in Australia but good reps overseas, worth a look.
- MG MG3 – a sporty number with a reasonable price point.
When looking at advertised prices, look closely – does it say plus dealer charges etc? If so, that will mean that there will be a lot more to add to the price tag. The advertised price on most new cars will have extras unless it says ‘drive away price’.
Doing the Deal
If you have your existing car to trade-in, it’s definitely worth presenting it washed, cleaned and spruced up to look its best.
Whether or not it is worth spending money on getting scratches, minor imperfections and other knocks etc removed with a professional repairer is debatable. Ditto with a professional detail. You will not always recoup the costs in getting extra on your trade, depending on the car of course.
Always try negotiating on price with the dealer – they will expect it!
Consider Running Costs
If keeping your annual car expenses down to a minimum is your priority, then you should be looking at more than just the purchase price.
- Insurance: comprehensive car insurance is partially priced on the cost of repairing that make or model. You may be surprised how that can vary. It may be worth getting quick quotes on insurance for the different cars you are considering.
- Service costs: new cars do come with a warranty, usually up to 5 years or a certain number of kilometres and manufacturers may have offers like ‘free service’ for a certain number of kilometres. Unfortunately, warranties and free service do not usually cover every item involved in servicing. You will still have to pay something in most cases, each time you take the car in for a service. Some manufacturers offer fixed priced servicing.
- Fuel efficiency: this is a big issue for all car manufacturers these days as most are working towards green targets and striving to produce even greater fuel efficient engines. If you do need your car for a lot of driving, fuel costs could add up.
Getting a Cheap Car Loan
- Most people will need to take out a loan to buy their car and Jade Car Loans always offers the cheapest car loan deals. Our cheap car loan offers might bring that slightly more expensive car within your budget.
- When buying a car, looking at the price tag is one thing, knowing how that will translate to monthly repayments is the key for most people. Use our online calculator to get rough ballparks on all cars you are considering.
- If monthly repayments is your main focus, consider paying a larger deposit to reduce the overall amount of your loan – that will reduce repayments over the same loan term.
- If the total cost of the loan is your focus, then paying higher monthly repayments over a shorter loan term will result in paying less total interest over the loan, ie the total cost is less.
- But with the current low interest rates levels and Jade’s cheap car loans, the saving may be quite insignificant.
- Getting a pre-approved Jade Car Loan may save you from being tempted for any special promotional finance offers advertised by the dealer.
- 0% interest rate car loans are usually not cheap car loans, they are usually cheap promotional gimmicks. Read our articles for more info on these.
Cheap Car Loan Options
Jade Car Loans offers cheap car loans for both private and business buyers. We negotiate hard with our lenders on interest rates and terms to deliver you the best car loan offer every time.
Your Jade Car Loans consultant will explain the options available to you and assist you with a cheap car loan to enable you to purchase your low-priced car within your budget.
To discuss a cheap car loan on a low-priced new car speak with a Jade Car Loans consultant 1300 000 003
DISCLAIMER: THIS INFORMATION IS PROVIDED FOR GENERAL PURPOSES ONLY. ALL REFERENCES TO GOVERNMENT POLICIES, SCHEMES AND INITIATIVES IS SOURCED VIA OFFICIAL GOVERNMENT DOCUMENTS, MEDIA RELEASES AND WEBSITES. DETAILS ON VEHICLE SPECIFICATIONS ARE FEATURES ARE SOURCED FROM MANUFACTURERS’ WEBSITES. NO LIABILITY IS ACCEPTED FOR ERRORS IN THE REPRESENTATION OF THE INFORMATION AS SOURCED. ALL PERSONS ARE ADVISED TO CONSULT WITH THEIR ACCOUNTANT OR FINANCIAL ADVISOR FOR PROFESSIONAL ADVICE ON THEIR SPECIFIC CIRCUMSTANCES.