Getting the keys to your freedom through your new wheels can be exciting. With 2.38 million Australians planning on purchasing a new car in the next four years, there are a few trends to swerve from in 2019 to avoid high insurance costs, and perhaps purchasing a dud. Here is a list of four trends that need to be left behind in 2018.
1. Questionable car modifications
Who doesn’t love adding their own personal touch to their car? There are a few car owners that do stretch this too far when it comes to certain modifications that will not only leave their car looking questionable but could also spike their insurance premiums. Fake eyelashes, zany car colours, and car bras may turn heads for the all the wrong reasons. This is one of those trends that need to be left in 2018 and for all years to come. Remember that if you planning on selling your car in the near future the modifications you have carried out on it will affect the resale value.
2. The last-minute scramble for a car
Purchasing anything in a hurry can leave you and your pocket feeling regretful. According to Roy Morgan research, 1 in 10 Australians who intend to buy a new car before 2020 have already conducted online research on cars they are interested in. However, many Aussies tend to leave researching a car to the last-minute with. Roy Morgan found that 58% of car buyers did research 6 months before buying a car, but the numbers increased to 72% within a month. Researching beforehand can help give you ample time when it comes to finding a car that matches your needs at the right price.
3. Buying too much car
Getting a pre-approved car loan is a good way to know how much you can afford. Most Aussies attach a loan to their new car, but it is not uncommon for car buyers to borrow more than what they can afford. According to the Royal Commission report, car loan delinquencies and missed payments increased in 2017 to 0.44% from an average of 0.4% and 0.6% . Using a car loan calculator can be one way to calculate what the loan will cost you over the loan term. Checking the loan features such as the interest rate, fees, and charges can show you if the loan is affordable. Remember to always compare your options.
4. Not looking beyond the purchase price
Comparing car prices and haggling for a good deal is something that most Australians are getting good at. However, focusing on the purchase of the car can sidetrack you from the real costs of it that could drain your finances in the long run. One trend that should definitely be left behind is the running costs of a car.