Holiday wheels: Sealing the deal on your new car purchase while away from home

December 19, 2023December 19, 2023 jonckie

Picture this: You’ve got your eyes set on a new car, but the bonus you need to pay the deposit will only clear after you leave for the holidays. Or, perhaps after 10 hours crammed in a sedan with three kids, you and your partner want to get something bigger before the drive home. Maybe you come across a better deal for your dream car at your holiday destination than you can get in your hometown. There are some scenarios where it might suit you to drive off for the holidays in your existing car and come back in a new one.

Ernest North, co-founder of Naked, the fully digital insurance platform, offers tips that will make it easy to buy a new car while you’re away on holiday.

1. Get your spare key and registration papers together. If there’s a chance you might trade in your existing car while on holiday, remember to pack the spare key, service history and registration papers. Save a copy of the registration papers in the cloud, just in case.

2. Clean your car and get scratches removed before you leave. Getting your car polished and valeted, and buffing out any small scratches, can help you get a better resale or trade-in value.

3. Put down a deposit to reduce interest repayments. If you received a bonus, consider using it towards your deposit. The more you can pay upfront, the less the interest you will pay over the term of the car loan.

4. Don’t neglect your homework. Even if you’re in the holiday spirit, take time to read reviews about the cars you’re evaluating, compare prices, and ensure you’re getting a fair trade-in or resale value. You can easily do this from your smartphone while you’re relaxing on the beach or enjoying your morning coffee. Also, you do not need to limit your search to the geographical area you are in. Nowadays, it’s easy to search for good deals across the country – be it through dealers or online buying platforms. You can negotiate remotely, arrange for an independent inspection, secure agreements such as a 2-week money-back guarantee, and even have the chosen car delivered to where you are.

5. Take care of the insurance. You’ll need proof of insurance cover to drive away with your new car if you’re buying it with bank financing. You might struggle to get this sorted on a Saturday morning or a public holiday if you’re insuring through a traditional insurer. But with a digital insurance platform like Naked, you can use an app to get a quote, buy and download proof of cover within a few minutes.

6. Consider buying from a reputable dealer. If you’re buying a used car, a reputable physical or online dealership that can offer you the car’s service history and registration papers is the safest option. Most dealerships that sell new cars from the major brands will often also sell certified pre-owned vehicles, giving you a little more assurance that the car meets minimum quality standards.

7. Evaluate before you buy. Ask to see the service history and look at the mileage of any car you’re seriously thinking of buying. Check if the car has been in an accident. You can use the car’s VIN number on Autotrader’s Vehicle Check or Lightstone Auto to find out if there is any police interest or accident reports that involve the car. This is important when you’re buying from a private individual – especially if the deal seems too good to be true.

8. Take time to decide. You’re on holiday, so there’s no need to rush. Allow yourself time to think through the deal. Schedule test drives for early in the morning or earlier in your trip, so you can decide at your leisure.

9. Remember to budget for the full cost of ownership. When you’re deciding how much you can spend on a car, keep in mind that the monthly repayment is only part of the cost. Ensure you’re also budgeting for insurance, maintenance, fuel, and unexpected repairs. Leave some slack in your budget for rising interest rates and fuel costs.

“December and early January can be great times to buy a car,” says North. “During December, dealerships are scrambling to meet annual targets and sell their stock before next year’s models come in. That often means you can find better deals or negotiate a higher discount than during other times of the year. But bear in mind that a car is a living expense, not an asset. Think carefully about whether a new car is the best way to spend your money ahead of the new year.”

Buying a Quality Used Car and Safety on the Road – Verify and Validate the Credentials of whoever wishes to sell you the Car!! https://t.co/RA39TrVRSe #ArriveAlive #BuyingCars #UsedCars pic.twitter.com/LV91HN5OMa

– Arrive Alive (@_ArriveAlive) November 16, 2022