Step 1. Choosing the right car for you |
 |
When you’re buying a new car, it’s important not to rush into it.
Some research first will help make sure you know exactly what you want.
Decide what you want to use the car for. Is it for you or someone else in the family?
What features would you like it to have? Is it for business or pleasure or both?
If you’re intending to use the car for business then it would pay to get some tax advice
or talk to an accountant.
Read the independent tests and reviews in automotive magazines, on car websites such as
Drive, Carpoint or Carsales or in the weekly car guides in most major newspapers.
Visit car yards, kick tyres and talk to friends about their cars. Consider all the pros
and cons such as fuel economy, manoeuvrability and how the car would suit your lifestyle.
Quite often, the car you start looking for is not the car you end up buying.
Next comes the reality check: How much can you afford?
|
| |
Step 2. Finance |
|
How much can I afford?
You need to work out a budget to determine the amount you’ll be able to comfortably repay. Have a look at your bank statements from the past year to identify your spending patterns and surplus funds.
You might have to give up something if you really want to buy this car. Think about how much of your surplus you’d be prepared to spend each month to repay the loan. Your repayments can’t be more than your surplus and you should always build in a buffer, in case of emergencies.
Esanda can usually lend the full amount of the car but in some cases we may require a deposit. Call Esanda on 1300 655 086 for a quote on how much you can afford to borrow or apply online. You may even get a pre-approval so you can start shopping right away.
What type of cars can be financed?
Esanda can finance any vehicle that is Australian delivered and registered as long as it is not more than seven years old and the amount financed is more than $7,500.
|
| |
Step 3. Esanda loan application |
|
You can either fill out the application form or call Esanda on 1300 655 086 to help you work out how much you can afford. You need to include a list of assets (what you own) and liabilities (what you owe). Your ability to pay back a loan is more important than the assets you own.
Once you’ve worked out how much you can spend, it’s time to start shopping. Get a rough idea of the makes and models that are in your price range and start looking.
|
| |
Step 4. Things to watch out for |
|
Buying a car can be an exciting experience but try not to make a spur-of-the-moment decision that you may later regret.
Check the prices
Make sure you look at a number of cars and visit dealerships to compare prices and quality. Check the classifieds, but bear in mind that nearly everyone advertises their car for more than it’s worth. When you contact a seller, it’s almost certain that the price will be negotiable.
Have the car checked out mechanically
A roadworthy certificate or ‘pink slip’ is no foolproof indicator of reliability. Make sure you get a thorough mechanical inspection. When you finally make an offer, make it conditional on a positive independent report from your local motoring association, automobile chamber of commerce or mechanic.
Take the car for a test drive
Even if the car is mechanically A1, you should make sure that it feels right for you before committing to it. Take it for a test drive. This is your chance to discover whether you really feel comfortable driving it. How’s the visibility, the turning circle, reverse parking, the stereo, the aircon? Does the car suit you and/or your family?
Have the car checked for prior ownership
Make sure that the car is on clear title. This means that the person who says they own the car, actually owns the car. If the car has been stolen or is under finance, you might lose it along with your money to the previous owner or the previous finance company.
Has the car been used as security for a loan?
You should have a securities check done to see if the car is being used as security for somebody else’s loan. There is nothing wrong with that but you need to make sure the finance company will be paid out.
Two cheques?
Ask the private seller to obtain the payout figure from their lender in writing. When you pay for the car, give one cheque to the lender and the balance to the private seller.
Compare the numbers
Compare the vehicle identification number (VIN) and engine number in the car with the registration certificate’s numbers. A popular scam is to get legitimate identification papers from a vehicle that has been written off and attach them to a stolen vehicle. You could end up with the worthless title to a wreck and lose the new car you thought you were buying.
Other things to keep in mind when buying a car privately
- You have no right to a refund if you change your mind. There is no cooling-off period.
- You don’t get a warranty so you will be unable to have the seller fix anything that may be wrong once you’ve driven away.
- It’s up to you to check the credentials of your seller. Don’t be afraid at the very least to ask them for a licence as proof of identity. (Esanda also requires a detailed statement from the seller. We’ll provide you with advice on how to prepare this when you apply for your loan.)
- Make sure the car has a roadworthy certificate where this is necessary and allow for any additional repairs to the car in your budget.
- Make your offer in writing. It only needs to be a note but it may help avoid disagreements later.
- Make sure you get a receipt from a private seller.
|
| |
Step 5. Protecting your investment |
|
There are two main types of car insurance available: comprehensive and third-party property. If you are financing your car with Esanda, you will need to organise comprehensive insurance. You might also consider loan insurance to cover your finance payments.
Insurance has become a highly competitive market, so shop around to find the best deal. Most insurance companies can give you a quote and arrange insurance over the phone with no papers to be signed until they arrive in the mail. In the meantime, your insurer will give you a cover-note number that can be used if an accident occurs before your insurance papers are lodged.
Remember, never drive an uninsured car.
Comprehensive insurance covers all accidents and damage to your car and other cars and property.
Third-party property covers damage that your car causes to others’ cars and property but not to your own car.
Loan insurance covers your finance repayments if you lose income due to illness, injury or termination of employment. Call an Esanda account manager on 1300 655 086 for details.
|
| |
Step 6. Frequently Asked Questions |
|
Q. How much can I borrow?
A. Depending on how much you can afford, we will lend up to the full amount of the vehicle being purchased. However, in certain circumstances, we might require a deposit. We can also finance the cost of loan insurance.
Q. Are interest rates fixed or variable?
A. Interest rates are fixed, providing you with the reassurance that your payments will not vary due to changing interest rates.
Q. Will I have to provide additional security?
A. Usually the vehicle itself is sufficient security for your loan.
|
| |
Step 7. Next Steps |
|
|
For more information, you can either enquire online or contact Esanda on 1300 655 086. When you are ready, you can apply online.
|
| |
Important Notes |
 |
This is general advice and does not take into account your particular investment objectives, financial situation and specific needs. Before making a decision on the basis of this information, you should consider whether this information is appropriate for you in light of your investment objectives, financial situation and specific needs.
|
 |
|
