Buying a car, without blowing your budget

Buying a new car is up there as one of the biggest investments we make in our lives, and if you’ve never done it before, the process can seem pretty intimidating.  There are certainly a few things you should consider before you start picking out those cool new car accessories.

Here are THREE TIPS to buying a new car without blowing your budget.

1. Set your budget (and stick to it!)

Make sure your maximum price includes all the extras, like “on-road costs” (stamp duty, rego, car insurance, etc).  Also, be sure to factor in the continuing expenses associated with owning a car.  Ongoing costs like fuel, servicing and maintenance can add up to hundreds of dollars each week, so leave room in your budget for these items after you buy the car.

Even if you do have some savings, taking out a car loan could give you more wiggle room in your budget long term. This is because the loan repayment is set and provides you with an amount to budget from the outset.

Are you a bit confused about your options or the “how to” of getting a car loan?  The Capricornian’s friendly lending staff would be happy to talk through the process and loan options with you.

2. Do your homework

There is no one-size-fits-all vehicle that is perfect for everyone.  Consider your lifestyle and how you’ll use the vehicle (both now and in the future).  Here’s some things to think about:

  • Are you planning to start a family soon? 
  • How many seats will you need?
  • How much boot space will you need?
  • Will you be towing a caravan, boat or jetski? 
  • Do you have undercover parking at home?
  • Will you be venturing off road?

Either way, before searching for the car of your dreams, understand how much you can afford by checking out The Capricornian’s car loan repayments calculator.

3. Shop around (for your car and your car loan!)

Shopping around for a car with a pre-set budget in mind will help you decide whether you can afford to buy outright or if you’ll need to take advantage of a car loan

A budget will also help guide your decision of whether to head to a dealership, or to buy second hand.  Having a budget lets you negotiate with confidence – you’ll be less likely to choose a more expensive model if your savings or loan amount won’t cover it. 

Remember that shopping around for a car, also extends to shopping around for your car loan and insurance options too! 

When it comes to something as significant as buying a car, it really is worth doing your homework so you know how much you’ll pay for your car finance in the long run. Car dealership loans seem easy, but may not always be your best deal after a few years.  Comparing a range of loans from both car dealers and lenders will not only help you feel more confident, it could potentially save you thousands of dollars over the term of your loan.

If all the terms, conditions and the different types of loans seem overwhelming and confusing, get in touch with the lending staff at The Capricornian.  They’ll happily help you make sense of all the “bank jargon” (without any obligation).

There you go.  It’s as easy as 1, 2, 3.  Do your homework and you’ll be on the road in no time.


Please note this information does not take into account your personal circumstances and is general advice only. Before opening any Capricornian account, please read the Conditions of Use and decide if the account is right for you. Interest rates are subject to change without notice and should be verified with your local Capricornian Branch.

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