The average Australian's car is 10.3 years old, according to the Australia Bureau of Statistics, meaning that Australians either hold onto their cars a long time or tend to buy used cars over new cars. As a result, competition for business among car dealers and car financing companies is very strong. Australians interested in purchasing a new car can find some good pricing and financing deals available right now.
For example, many car dealers are tempting buyers to buy and finance through them by passing along the recent 5% reduction in import tariffs to their customers. Even if car dealerships are not advertising lowered pricing, the tariff reduction gives most companies the flexibility to make a lower deal. So, plan to negotiate for a better rate when you go car hunting. Also, keep the negotiation for car purchase separate from discussions about financing. Some dealers offer very low financing rates and make up the difference in price. The savvy car buyer will seek out financing arrangements through a variety of lenders, or use a broker before making a choice.
In addition, look for special options such as:
- Better rate for applying online - Some companies pass on their e-commerce savings to their customers.
- No deposit - If you have great credit, you may not need to make a down payment.
- Flexible repayment period - Car financing has moved from the "take it or leave it" payment term to customized options.
- Low cost car insurance options - There are great opportunities to save.