5 things to think about when choosing a car

Buying a new car can be super exciting, whether it’s your very first set of wheels, new or used, or you’re looking to upgrade to something more suited to your changing lifestyle. But with so many makes and models to choose from, it can really pay to do your homework to make sure you choose the right car for your budget and needs. 

Here are 5 key things to think about...

Your budget

Audi tastes, Holden budget? You’re not the lone ranger there! While we might love the look and style of that new high-end model, it’s important not to get too swept up in the emotion of it all and stay focused on how much you can realistically afford to spend. If you’re planning on taking out a car loan, you’ll need to think about what your repayments might be and whether you’ll be able to cover them comfortably on top of your everyday living expenses.

Why not run the numbers to see what your repayments could be with our loan repayments calculator.

Running costs and fuel economy

Running costs and fuel economy are other important factors to think about when it comes to choosing the right car for your budget. With ever-increasing petrol prices, plus rego, insurance, repairs and servicing, the yearly cost of running a car can be very significant. It’s all the more reason to weigh up the fuel economy of any car you’re looking to purchase.

The Green Vehicle Guide is a great resource to help you compare up to 3 vehicles side by side to see what the annual cost of fuel will be. Plus, it will give you an estimate of each car’s CO2 emissions so you can get a feel for your prospective cars’ environmental credentials too.

Car safety

The safety of a vehicle isn’t always the first thing to come to mind when choosing a car but it probably should be - a study by Monash University found a driver in the least safe car is 10 times more likely to be killed or seriously injured than someone in the safest. So when you’re shopping around, make sure you check each car’s ANCAP star safety rating, with a 5 star rating being the highest.

Your lifestyle and space needs

You’ll also need to think about your lifestyle when it comes to deciding on what make and model might suit you best. How many passengers are you likely to have? Will it be a family car or an everyday commuter to get you from A to B, or perhaps you're looking to upgrade to a 4WD to take you on adventures further afield? A few things to weigh up in this department include a car’s drivability, the number of seats you’ll need and the boot or hatch capacity, especially if you need to transport things like prams or sports equipment.

Depreciation in value

As the saying goes, your car starts to lose value the moment you drive away from the car dealership - so it’s a good idea to do some research if you think you’re likely to upgrade your car in a few years time because some makes and models hold their value better than others.

To get an idea of how a particular model might depreciate over time, look at the sale prices of older models of the cars you’re considering. According to Cars Guide the brands with the best resale value after three years/60,000km are Land Rover/Range Rover (61%), BMW (58%), Porsche (58%), Subaru (56%) and Toyota (55%).

Time to do some car loan homework?

We offer competitive variable rate loans which start from $5,000 and fixed rate loans starting from $10,000 with flexible repayment options and no ongoing account keeping fees to help you get on the road for less.

Explore your car loan options here.