When you’re buying a car, it’s easy to listen to the advertising of car dealers or manufacturers and to believe that the car finance deal they can offer you will be cheaper.
However, this is one instance where it pays to do your calculations and work out exactly how much you are paying for your new car - you could be surprised.
When car manufacturers or dealers offer a low price, or even zero percent interest, it’s usually going to be tied to the full price of the car, and full dealer delivery charges.
When shopping for a new car, it’s easy to focus on finding the car that you want to buy and putting so much effort into getting the exact features that you forget one of the most important aspects of car buying - making sure you get the best price possible.
You’ll find that you might be better off arranging your car finance deal through an independant broker. This breaks up your big decisions, so you have enough time and energy to make the best decision.
It also means that once you get to the car dealer, you can focus on negotiating the best deal on the price of the car, because you have finance pre-approved.
Australia has become increasingly obsessed with small hatchbacks and SUV’s, resulting in intense competition from manufacturers competing to provide more luxurious and safer cars. We've narrowed down the best picks for SUV and small cars to help your decision process along.
Let’s get onto the exciting stuff - with a look at our 5 favourite new models for 2016:
One of the quietest small cars, this car combines space with driveability, though you have to bear in mind that this isn’t a sports car! The vehicle corners responsively, . A continuous variable transmission (CVT) found in all Suburus can be manually operated using gear shift paddles behind the steering wheel.
It’s very economical, with the 4 cylinder engine using 6.8L of fuel per 100km.
It also comes with a 3 year unlimited km warranty, and all the features you expect in a modern car, such as:
All in all, it’s a great car, with choice of hatchback or sedan, with an excellent safety rating - 5 stars (the maximum possible) under the Australiasian New Car Assessment Program (ANCAP).
This SUV has been designed with Australian families in mind. It features the ability to legally fit 4 child seats, and the second row has been weighted to allow small children to operate t the sliding row giving access to the third row, even with a child seat in place. Grab holes in the trim make it easier to climb in and out of the 3rd row.
It has the 5 star ANCAP safety rating we expect, and is the first SUV to incorporate AEB (auto emergency braking), technology at both the front and rear of the vehicle.
AEB will alert the driver to an imminent crash and help them to use the maximum braking capacity of the car, and even apply the brakes independently of the driver should the situation become critical.
It’s pretty efficient for its size, the two-wheel drive model consumes 8.4L/100km, and 4wd uses 8.8L/100km. This is a huge improvement on the previous model, giving each vehicle a respective driving range of 857km and 880km under various conditions - you can expect better on the highway.
In March, April, May and June this was the top-selling passenger car in Australia. Originally priced at $19, 990, you can now get it for between $20,350 and $24, 200 depending on whether you go for the sportier version, and dealer you select.
It has lots of modern features, like Apple Carplay, Android Auto, bluetooth connectivity and USB and AUX outlets for playing music and accessing navigation. It also boasts a rearview camera and park assist. It drives comfortably both on city roads and on the highway.
For a small car, there’s a surprising amount of space on the inside, with ample storage for small items, and an impressive 1300L of cargo volume when you fold down the rear seats. Shopping bag hooks and a 12V outlet add to the convenience of the cargo space.
It’s not really passenger friendly, but with 4 doors and plenty of room in the back seat, you can forgive the lack of cup holder, a centre armrest, and air vents in the rear - after all this isn’t why you’re buying an i30 and will only be an incidental requirement.
The i30 has a 5 year unlimited km warranty, lifetime capped price servicing, and roadside assist.
This is another great SUV, and very affordable with prices starting at $28, 990 for the petrol model. You’ll pay more ($33,990) if you opt for diesel and all the extra features, and the diesel model does have more power and great fuel efficiency. The diesel uses 6.8L/100km, the petrol 7.9 L/100km - quite conservative for an all-wheel drive.
Notably it’s equipped with a full-size spare rather than the space saver spare often found in its competitors, making for a much more comfortable drive should you get a flat tyre in the outback. It also comes with a massive 7 year unlimited kilometre warranty.
It comes with all the modern features you’d expect, like rear parking sensors, rearview camera, headlights which switch on as it gets dark, bluetooth connectivity, hill-assist and downhill brake control to regulate speed automatically on downhill slopes when you’re driving offroad.
There’s tons of space to carry stuff, with 466L in cargo bay, expanding to 1455L with the rear seats folded away. There’s a luggage net option too to make packing full more practical.
Despite not having been updated since 2014, the Mazda 3 is still Mazda’s most popular car in Australia. It’s just the right balance of looks, practicality and value, with an excellent multimedia system and 5 star ANCAP safety rating.
It comes with AEB, and prices start from $20,490, with increases for automatic, diesel and features. The warranty is for 3 years. With a high safety rating and child seat mounts in the back, it’s a good car for a small family if you’re driving in the city.
Of course, once you’ve chosen the car and negotiated the best possible price, if the dealership can then offer you a better finance deal, go for it. Just make sure you have your calculator handy so you know for sure that you’re still getting the same price on the car you’ve chosen.
Dealerships make their money through the finance department, so they may load the rate that they offer you, inflating the cost of the vehicle. So if they offer you finance for your new car, don't take it unless its better than your pre-approved loan!
Car interest rates may vary from around 4% to 15% - but you need to make sure you’ve read the T&C’s, and you are aware of any fees or if a balloon payment applies to your car loan. If you’re buying a new or nearly new car, ask for a secured loan to get a better interest rate. Remember, if you use a car finance broker, their first interest is getting you the best loan. At the car dealer, they are trying to make some money on the sale of the car and they might use finance to do that!
If you think you’d like to buy one of these 2016 favourite cars, or you’ve got another car in mind, give a car finance broker a call on 1300 722 210 so you can be confident that you’ve got a competitive car finance deal pre-approved before you start shopping for that great new car.