Are you in the market for a new car? Whilst you’ve probably got plenty to look forward to (i.e. road trips, weekend plans, IKEA runs, and the like), there are also plenty of financial and practical considerations that need to be made when finding the right vehicle for you and your household.

For Aussie families living on a budget, ensuring minimal losses on your car purchasing habits is also becoming more essential. Yes, cars are always going to be perceived as more of a liability than they are an asset, but with the right purchasing strategy, you can actually make sure your next vehicle doesn’t break the bank unnecessarily, and may even retain its resale value.

Below, we’ll be sharing some key measures used by Aussie consumers to optimise their car purchasing habits. Read on to see how many of these steps you’re already practicing today, and what other measures can be added to your car shopping strategy in the future.

Buy Used – But Don’t Buy ‘Cheap’

That age-old adage that a car loses 10-15% of its total value the minute you drive it off the lot actually has a lot of truth to it. If you buy a new car for $35,000, you can expect to sell it for anywhere between $28,000-$30,000, depending on its condition. A drop of approx. $7,000 in value in just one year is substantial enough that fiscally responsible drivers opt instead to go for cars that are already at least a few years old, and have gotten that initially steep 1-2 years of depreciation out of the way first.

Whether you explore loans for secondhand cars or are looking to buy outright, going for a used car can be a great way to get a good quality vehicle at a fraction of its original cost. Plus, if you buy a late used model, or an ex-display vehicle, you can get an almost brand new car for thousands less than buying new – even if there's only a few thousand kilometres on the clock. 

With a relatively new used car, you should still have some years left on the manufacturer's warranty period as well, which guarantees your car will be repaired for free for any major or minor mechanical malfunctions –another excellent benefit of buying used, but not buying cheap. 

Do Your Due Diligence

How can you make sure you aren’t buying cheap? One of your first and most critical steps to make your money work for you when buying a car is conducting thorough research. With countless makes and models on the new and used market, it's essential to identify what models are safest to drive, provide the best fuel efficiency, and thus, what models are slated to maintain consumer demand in the used car market. 

You should focus on vehicles known for reliability, fuel efficiency, and low maintenance costs. Resources like car reviews, reports and online forums can provide insight into the long-term ownership experience of specific cars. You should also consider comparing prices across multiple dealerships, both locally and online, as this helps to establish a realistic price benchmark and prevents overpaying. Also beware of makes and models that have had recalls, as even reliable manufacturers can have issues. 

Another key tip here is to factor in the total cost of car ownership, not merely the sticker price. Some cars may seem like a steal upfront but end up costing more in the long run due to poor fuel efficiency, higher insurance premiums, expensive parts, or due to their requiring frequent repairs. Sometimes, paying a little more upfront for a reliable, efficient car can actually save you thousands over its lifetime.

Negotiate When Buying

If you are looking to buy from a dealership, just keep this thought in mind: car sales specialists have one objective at all times, and that is to sell you a car. If you walk out of the showroom without putting down a deposit, they are the ones who miss out on making their commission. You want to help them to do their job – but you also want to help yourself by striking a hard bargain in the process! 

In other words, you should always be able to negotiate the cost of a new or used car, especially if you're trading in another vehicle for some cash towards the purchase price. And if the salesperson can't or won't budge on the price, see what else they can throw in to sweeten the deal. Can they promise capped-price servicing, or an extended warranty, some upgrades, or roadside assistance? How can they make this purchase more worthwhile for you?

Remember, if you don't ask, you won't receive. So, haggle as hard as you can and walk away having gotten more for your money when buying at a dealership. 

Time Your Vehicle Purchase

Timing your purchase can also play a major role in how much you spend on your next car. Car dealerships often have sales targets to hit at the end of the month, quarter, or year, making them more willing to offer discounts during these times. As such, a savvy buyer will time their purchase for then. 

The end of the calendar year (from October to December), is typically the best time to buy each year, as dealers tend to clear out older inventory to make space for new models. Shopping during weekdays instead of weekends may also give you more time and attention from local sales staff, potentially resulting in better deals and a more personalised experience. 

Get More Value from your Vehicles

By following the tips we’ve outlined above, you can make sure your car purchases are always poised to deliver cost value – both during the course of your owning that vehicle, and when the time comes for you to ultimately sell it on and upgrade.

Just remember to keep on top of your responsibilities as a conscientious vehicle owner to ensure your spend-savvy purchase can retain optimal value over the course of your ownership. Never miss your servicing appointments, keep your tyres in good health, and always make sure to top up your oil as needed. All these good habits will set you up for a comfortable long-term strategy with car buying, owning, and selling.