Strategic Car Ownership: How To Get More Value From Your Vehicle Purchases

Car Insurance

Strategic Car Ownership: How To Get More Value From Your Vehicle Purchases

When it comes to purchasing a vehicle, savvy buyers will know that the right strategies go a long way in getting the best deal. However, the decision to buy a car typically encapsulates a range of other financial factors outside of just a price tag, spanning from whether you’re after comprehensive car insurance or third party, to researching estimates of servicing and maintenance for all your shortlisted models.

Whether you’re looking to purchase your first car and are tossing between buying new or used, or you’re simply just comparing car insurance to determine if you can afford higher insurance rates for premium vehicles, the right knowledge is key to getting the best value from your purchases. And today’s guide is here to help, so continue reading to learn how you can get the most value from your next vehicle purchase.

How to get the best value when buying a car

Planning and research

The first step in buying a car is to do thorough research about the vehicle in question as well as the market you’re looking to buy in. Start by deciding what type of vehicle best suits your needs. Is fuel efficiency important, or are you looking for a spacious car with towing capacity? Once you have a general idea then you can figure out specifics.

Using online resources such as Moneysmart, you can figure out how much various models will cost over total time running the car. This is an important piece of information to show whether you can afford to run the car. Remember the ticket price isn’t the total cost of the car, there are a wide range of costs associated with vehicle ownership from registration to comprehensive car insurance and a little bit of research now can save you a lot of money later.

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Budgeting for your Auto Purchase

Now that we’ve done the research on what kind of car will suit our needs, we then need to set a reasonable budget. Here, be sure to get quotes for as many of the costs as possible to ensure that you can equip yourself with a well-informed buying budget.

In addition to the vehicle purchase price, your budget should also include insurance, registration, maintenance, and any other running costs you can expect to bear. You’ll find there is a big difference in price of things like comprehensive car insurance for every vehicle. So be sure to repeat this process a few times with different models of cars to find the right balance.

Additionally, consider financing options. If you are looking to take out a car loan, then be sure to compare the market and find the best interest rate and terms that match your budget. A key to remember here is that a higher down payment will often decrease your monthly payments and reduce the overall amount of interest paid over the lifetime of the loan.

Negotiating with Sellers

Once you’ve found the perfect car that suits your needs and is within your budget, then it’s time to start honing your negotiating skills. This final step can make a huge difference in making sure you get the most value out of your purchase. This is where all your hard work with your research will pay off as well, so make sure you know the market price for the vehicle and be prepared to walk away if they are not willing to sell at a fair price.

Remember that you can negotiate with private sellers and dealers alike, so don’t be afraid to ask for your price. If they won’t move on price, ask if they can include some additional features or any other complimentary options to make the sale more worth your while alongside helping them make their commissions. Being well prepared with the right questions and confident can save you thousands of dollars.

Best practice when selling a vehicle

Timing the market conditions

Of course, selling your vehicle can be a different kettle of fish to entering the market as a buyer. And any veteran car owner knows that timing can significantly affect the sale price of your vehicle. So our best tip here is to research the market conditions as best as possible keeping in mind that it is impossible to time the market perfectly.

Generally speaking, there are times of the year when certain types of cars sell better than others. For example 4x4 will sell better coming into winter and convertibles sell better in the spring and summer.

Your vehicle valuation should also take into consideration your car’s ownership history and whether there are any gaps in your vehicle servicing records. Understand your vehicle’s timeline by checking through its records and assessing its odometer reading. Keep in mind that cars can lose up to 58% of their value in the first 3 years of ownership. However cars older than 5 years depreciate a lot slower from that point onward.

With this information, you may decide to purchase a vehicle that you know is less likely to depreciate over time too! This is a long-term strategy for maximising the ROI of your vehicle purchase. Understanding what your car is likely to be worth in the future will give you a good starting timeline of when you should sell your car.

Preparing your car for sale

Once you’ve decided to sell your car, then it’s time to start preparing your sales strategy. You only get to make one first impression and appearances are everything, so ensure your car is in the best possible condition before listing it. Clean the interior and exterior thoroughly and address any minor repairs such as scratches, dents, or broken lights to make sure your vehicle is presentable for prospective buyers. A well-presented car often fetches a higher price and will attract more interest.

Professional detailers are highly recommended especially for higher priced vehicles. Presenting this with as much service history as possible will ensure the potential buyer that the vehicle is in good condition and is reliable.

Effective advertising

When selling your car privately it can be helpful to utilise multiple platforms to maximise exposure. High quality photos and a detailed description with the key features will help draw in potential buyers. Platforms like Car sales, Gumtree and Facebook marketplace are great places to start.

Being both honest in your description and having fair prices based on the market is key to attracting high quality serious buyers. Make sure to mention any unique features or upgrades. Staying patient and firm on your price will ensure that you walk away with the maximum value.

To make the best possible purchasing decision for your vehicle it requires a combination of research, planning and timing. The key is making informed decisions and taking advantage of opportunities you can significantly boost your buying/selling power. By utilising the steps in this guide, you’ll be well on your way to getting the maximum value out of your vehicle.

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General Advice Warning: This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is appropriate for you and your personal circumstances. Before you make any decision about whether to acquire a certain product, you should obtain and read the relevant product disclosure statement.

All information above has been provided by the author.

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