Before you buy a car read these 8 tips

1. Never pay top dollar for a brand new car

If it’s got to be a spanking new car rolled out of the showroom, just make sure you don’t pay the full list price. The Kelly Blue Book value  gives you the value of every car. This is the real price that you should then aim to further undercut - and if a dealer won’t discuss a discount, move on to one that will.

Most buyers, particularly in the climate today, should be able to get between 5% and 15% straight off with a bit of shopping around and some mild haggling. It’s good to remember that dealers are generally keener to cut a deal when business is quiet - usually in August or December - or when sales targets need to be met, which is more often than not near the end of a month.

2. Compare trade-in offers

If you are looking to trade in your old car, talk to several dealers and then compare what they call the “cost to switch”. Dealers will often inflate the trade-in price of your old car, but also charge you more for the new model. When weighing up a few offers, simply look at how much money you are going to have to hand over once you’ve swapped cars - that is the true cost of the deal.

3. Buy a used vehicle

The prices of used vehicles are on the average at an all time low. In addition, buying a newly or pre-registered car can save you a tonne of money. Newly owned cars a usually 15 to 20 percent cheaper than new ones. So a car that may have about 5000 miles on the clock could easily be priced about $5000 cheaper

4. Weigh up all your financing options
If the dealer is offering a 0% finance deal, these can be worth taking in a credit crunch - or then again, you may find you pay less by borrowing the money elsewhere and paying cash upfront. A cheaper cash price may more than offset the interest you’ll pay on the loan. It’s worth noting that, in general, dealer-organised finance and insurance is quite a lot more expensive than the same products sourced from conventional suppliers.

And remember, never compare the finance deals that quote the charge per week - always look at the total cost of the loan over the whole period you are being quoted on.

5. Buy your car on the internet

If you know the exact model you want, even bigger savings can be gained from internet-based car brokers. These companies bulk-buy popular models and pass on part of the saving to the customer. They can usually undercut even the most generous of main dealers - saving you $2000 to $5000.

6. Car loans

Get you car loans online, that way you can comparison shop for the best interest rate for your car loan. A difference in one percentage point in interest rate can be over $1000 depending on the price of the car. Companies like Car Down Loan allows you to comparison shop for the best interest rate.

7. Get an outgoing model

Online car brokers can also be a great place to buy “run-out” models that are still new, but which the dealer is having trouble shifting because they are about to be superseded by a newer model. Discounts can easily be as much as 30% on the original list price. These cars may not be the latest models but they are usually packed with extras, and have proven technology that is less likely to let you down.

8. Don’t spend on needless insurance cover

Don’t fall for the old “gap” insurance trick which salespeople are pushing hard at the moment. Online insurance companies like Kenetic Insurance allows you to search for the best insurance rate for your situation