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New Cars

A new car sounds lovely doesn't it? Imagine the purr of the new engine and the looks you will get as you drive down the road in the latest model of your chosen car. However, we also know that the new model of today will be the old superseded model in the not too distant future and that the value of the car will go down very quickly.

So with this in mind we really need to be careful when considering whether or not to buy a new car.

 Saving Money Tips - Buying a New Car

Before rushing off to the car yard, you should grab out a large sheet of paper and write up the top "Do I really need to buy a new vehicle?" Then let the brain cells take a journey and come up with all of the reasons that you can to justify going out and getting a new car. Underneath this, write down all of the reasons to justify why you shouldn't go out and buy a new car.

Here are some ideas to get you started and some common reasons that people write down:

1. Reasons to buy a new car

Car too small / big

Starting a family and need more room

Can't fit in all of my gear

Can't transport all of the kids and their friends around

It is just us now so we don't need such a large car

We are going away so we need more leg room and storage capacity

No air conditioning

It is just so hot each summer we bake in our car

No air bags

The car has never been fitted with air bags

Lacking accessories (stereo / cd player / gps)

We need to have a cd player

Some new vehicles have an in built GPS so we need one too

The stereo is broken so we need to replace the car

Costing too much money to run

I am always spending money on this car

The car always seems to be at my mechanic

Need to look good at work

My car is a status symbol of my wealth

My boss would look down on me if I didn't drive a new car

Having a new car will portray a message to my clients that I am very successful

Too old

My car is x years old so it needs to be replaced

I have had this car x years so it is time for an upgrade to a new model

This model is old, I need the newer model

Petrol guzzler

I am always putting fuel into this car

I checked my credit card statement and boy my car is thirsty

I used to put in $x of fuel a week and now I am putting in $y

Running too fast / slow

I can't keep up with every one else on the road

My foot is almost flat to the floor and yet we hardly seem to be moving

If I don't sell this I am going to do damage to someone as it just zips off so fast I can't keep in control

Want security of a new vehicle warranty

I do a lot of travel for work and I want peace of mind if something was to happen

If the car is under a warranty I won't have to spend any money on it

No longer road worthy

The mechanic said the car isn't road worthy

I don't think the car would pass a road worthy test

Want to keep up with the Jones

My friend has just purchased one of these new cars so I want one

The neighbours have just purchased a new car so we should also buy one

I have been offered a good trade in

The new car sales man has offered me a good trade in

I want to trade now whilst I can get good value for my current car

I want a diesel vehicle

I want to change from petrol to diesel as I heard it is more fuel efficient

I need a ute / 4wd / sedan

I want to change from a sedan to a ute

I need to trade the ute for a 4wd

I need a 4wd for my upcoming holiday

I need a ute so I can shift houses

2. Reasons not to buy a new car

Can't afford it

The repayments will be too high

It is a lot of money for me to spend on a car

The loan will take me 7 years+ to pay back

Don't really need a new car

I am being silly, I don't really need a new car

There are other things I need ahead of getting a new car

Old car is going well

My old car works just fine

I can always get from A to B so what else do I need

Too expensive

Although it is new, I feel it is still very expensive

There is a big gap between 2nd hand cars of 2-3 years to the price on these new cars

Will drop in value too quickly

I have heard as soon as you drive a new car out of the show room they drop significantly in value

2nd hand cars seem like a much better alternative, I have seen they are much lower in value

Expensive on-road costs and stamp duties

When I buy a new car I will have to incur extra fees such as on-road costs and stamp duties. Aren't these costs in the thousands?

Insurance will increase

When I get a new car, I know my insurance premium will increase significantly

Young family

I don't know if my kids will look after a new car or treat it well; they are always banging the car doors into things

I know that kids are kids and it is hard to keep a car nice with them around

Have better things to spend my money on

I do have a lot of other important items on my wish list; a new fridge, high school fees, reduce mortgage, etc

Work may provide a vehicle

Work may offer me a car as part of my package at my next salary review

3. Then you need to carefully look at both lists and to analyse all of the reasons you have written down

How important is the reason you wrote down?

Look through your list and decide which reasons you have written down contain something that is a must have - this might be for safety reasons or security

Be careful here and very honest with yourself with what you consider to be absolutely critical

Look through your list and decide which items you have written down is a nice to have but something that you could do without - this might be a gadget or feature of the car that isn't absolutely critical

Take the time to rank each item from 1 to 10 in level of importance

Look through your list of reasons not to buy a new car. How strong and valid are these reasons?

It is important that you spend a decent amount of time doing this exercise and that you are somewhere nice and quiet where you can really think about yourself very carefully. This exercise could save you thousands of dollars!

4. As part of your analysis you should now spend time looking for alternatives. Start with the items that are of highest importance to you.

Car too small / big

Consider hiring a trailer

Consider hiring a car for the holidays

Clean out your car and see what space you then have

No air conditioning

Check out the cost to have this fitted to your current car

No air bags

Check out the cost to have this fitted to your current car

Lacking accessories (stereo / cd player / gps)

How much will it cost to have one fitted

Can you use a portable cd player / stereo

How much is a portable GPS

Can you make do with the radio

Costing too much money to run

Work out how much your car has actually cost you over 12 mths

Seek a professional opinion on the vehicle from your mechanic or local automobile club

Look carefully at how you treat your vehicle. Are you causing some of this cost?

What about your driving habits? Is this the cause of costing you money? Ie heavy braking or is your foot too heavy on the accelerator

Need to look good at work

You can still look good in a later model vehicle

Talk to your boss about being provided with a company car when you need to entertain clients

Talk to your boss about hiring cars / taxis when you need to entertain clients or travel

It seems pointless trying to look wealthy by owning a new vehicle if it is causing you financial grief and hardship. You will not be successful in your career if you spend all day worrying about how to pay your bills

Consider that a new car may put some clients off - your services may appear too expensive or that you don't value money as you spend it on unnecessary items that decrease in value

Too old

How old is too old? There are some decent vehicles on the road that are 7-10 years old that are still running perfectly

Who states that there is a set time frame that you need to replace your vehicle

What will the newer model provide you with that your current car doesn't provide you with

Petrol guzzler

Look at how much running around you are doing and whether or not you can seek alternatives such as car pooling, doing multiple tasks whilst out

Has your car been serviced recently? You might have a problem with your car that is easy to fix that is causing the extra fuel consumption

Consider how much the price of fuel has risen recently. Is this the real reason your petrol has increased

How much of the fuel bill on the credit card contains other items such as food and drink that you bought at the petrol station?

Running too fast / slow

Has your car been serviced recently? You might have a problem with your car that is easy to fix that is causing this to happen

Want security of a new vehicle warranty

Understand what is offered under the warranty

Consider having road side assistance from your local automobile club in case of break down

Keep your vehicle regularly serviced

Travel with a mobile phone so you can call for help in the case of an emergency

No longer road worthy

Get a couple of opinions on the road worthy status of your vehicle from a mechanic or your local automobile club

Establish how much it will cost to get the vehicle road worthy

Seek a professional's opinion on this matter

Want to keep up with the Jones

Why why why, do you need to keep up with what someone else is doing?

Be an individual and live your own life and not those of others

I have been offered a good trade in

A trick / marketing strategy for selling new cars is to lure people in by offering a high trade in

You either get a high trade in or low purchase price - it generally doesn't happen that you get both

Is the salesman playing around with figures? They sometimes up the price of the trade in and lower the discount on the new car OR they sometimes lower the price on the new car and lower the price on the trade in

If you waited a year or two before swapping vehicles, what do you think you might get as a trade in then

I want a diesel vehicle

How much will it cost to get diesel fitted to your current car

Are there any government rebates in relation to diesel fitouts

I need a ute / 4wd / sedan

Can you hire the ute / 4wd / sedan for the particular period of use if it is only short term / one off

Can you borrow a friend's ute / 4wd / sedan

Is it worth paying a tradesperson to do your job to negate this requirement

Are New Car Price Quotes Online Legit?

There once was a time, almost twenty years ago, when the only way to find out the fair price for a new car was an arduous task. A new car shopper had to gather Sunday newspapers, drive from car dealer to car dealer, and haggle, haggle, haggle. Even then, the only price the buyer had was the price regional auto dealers were willing to give. How were they to know if they had the best possible price? How were they to know if car shoppers just a few cities over were getting better deals or not? The only way, would be to somehow contact other people who purchased the same new car, or drive several miles to explore the pricing of other car dealerships.

Fortunately, today's car buyers live in a completely different market. In many ways, new car pricing is in the hands of the buyer. With the invention of the Internet, and the incredible access it gives modern shoppers to information, today's car buyer should be as informed as the local dealer when it comes to cost, hold-backs, incentives, financing, and dealer profit margin. There is no reason a buyer should test drive a new car without already knowing the absolute best price they can get.

So, is this online new car information accurate? Are online car prices legitimate? Can a buyer trust the information so freely served up on hundreds of car shopping websites around the country? The answer: Possibly.

The truth is, about 95 percent of all online car shopping sites are really just lead aggregators. Modern web technology makes it simple to build a car buying site that is loaded with model specifications, new car builders, and fairly accurate pricing data. The trouble is, they pull the consumer in with all the fancy gadgets only to collect personal information, submit it to their lead aggregation database, and then resell their visitors' personal info to hundreds of advertising and marketing firms, or to the major car buying sites.

So how does a modern car buyer find accurate information and pricing without sacrificing their privacy, or worse, ending up in the databases of hundreds of advertising agencies? The answer is really simple. Stay with the trusted sources. Do not enter your personal data into a form on a car shopping site unless it is known to be a trusted authority in the auto industry.

There are many trusted authority sites in the auto industry. All of these can be classified into two categories: Dealer Lead Suppliers or Consumer Negotiation Advocates. Dealer lead suppliers include sites from the automakers themselves, dealership websites, and sites such as Autobytel.com, KBB.com, Edmunds.com, NewCars.com, etc. Consumer Negotiation Advocates include sites like CarsDirect.com, AutoSeek.com, and others. Of course there are major differences between these two types of sites.

Dealer Lead Suppliers serve up a lot of information for car shoppers. Sites like Edmunds.com and KBB.com are jam packed with model specifications, trim and color options, and much more. TrueCar.com goes as far as showing visitors real-time car deal data from dealerships throughout the country. By tracking vehicle registration information, they publish extremely accurate new car pricing information. However, by serving up this wealth of "inside" information that used to be reserved for auto industry insiders, they are in actuality trying to compel you to do the one thing that generates them cash: complete an online purchase request form.

By giving car buyers unprecedented access to new car information, Dealer Lead Suppliers are able to entice millions of visitors to complete online new car price request forms. The data collected by these forms, predominately the visitor's contact information and buying preferences, is then sold to local new car dealerships, automakers, and auto finance companies. After completing the form, the car shopper should expect several phone calls from regional salespeople. Therefore, Purchase Request Form equals Calls from Regional Salespeople.

Consumer Negotiation Advocates have an entirely different business model. On the front-end they appear almost identical to Dealer Lead Suppliers. Like the other types of sites, they serve up unprecedented new car information. They give model specifications, trim and color options, and exceptionally accurate new car pricing data. And, like their competitors, they too want to compel the visitor to complete a new car price request form.

However, the Consumer Negotiation Advocates have a different use for the data collected by the forms on their sites. Instead of selling this data to car dealerships or manufacturers, they want to either keep the data or sell it to regional car brokers. The majority of these types of sites sell the data collected by their forms to brokers. Car brokers then contact local dealerships and negotiate on behalf of the car buyer. Many car brokers are long-time industry insiders and have tools at their disposal to help them drive down sales prices, increase trade-in values, and reduce finance costs. As their name suggests, they work as advocates for buyers throughout the deal process. The sites that do not sell data collected by their forms conduct the car broker services themselves.

For the most part, new car prices online are accurate. In many ways, they are more accurate and more informed than pricing sources that existed prior to the creation of the Web. In exchange for publishing access to better information, sites that tout new car prices online hope to gather personal contact information and buying preferences from their visitors. Their primary source of revenue is either the sales of data collected by forms on their sites, or car broker services.

Therefore, before a visitor completes an online Purchase Request or New Car Price form, they should consider the ensuing result. Do they want calls from local dealer salespeople? Do they want to haggle with the dealership themselves? Or, do they want a person with extensive industry knowledge and experience to act on their behalf throughout the process? The best deals, by a slight margin, are the result of the negotiating skills of Consumer Negotiation Advocates. Either way, a well informed, modern car shopper will get a better deal and more accurate new car pricing than buyers of the past.

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