Should I Buy a Ute or SUV?

Choosing between a ute and an SUV depends on your specific needs, lifestyle, and preferences. Both types of vehicles have their advantages and disadvantages, so it’s essential to consider your priorities and how you plan to use the vehicle.

Here are some key factors to consider when deciding between a ute and an SUV.

Cargo and Towing Capacity:

Ute: generally designed for heavy-duty use, utes are a better choice if you need to transport large or heavy items regularly. They also tend to have higher towing capacities, making them suitable for hauling trailers, boats, or other equipment.

SUV: They typically have a closed cargo area, which is more secure and weather-resistant than a ute’s open bed. While some SUVs offer good cargo space, their towing capacities may be lower than utes, so consider your towing needs.

Passenger Capacity:

Ute: Usually have two rows of seats and can accommodate up to five passengers, but the rear seats may be less spacious and comfortable compared to SUVs.

SUV: Available in various sizes, from compact to full-size, and can often seat more passengers, including up to eight occupants. If you need to transport a larger family or group of people regularly, an SUV may be a better choice.

Off-Road Capability:

Ute: Many utes come with four-wheel drive (4WD) or all-wheel drive (AWD) options, making them suitable for off-road adventures or rugged terrain.

SUV: SUVs come with varying levels of off-road capability. Some are designed for mild off-roading, while others, like dedicated off-road SUVs, are built for more extreme conditions.

Fuel Efficiency:

Ute: utes may have larger, more powerful engines designed for heavy work, which can result in lower fuel efficiency compared to some SUVs.

SUV: Many SUVs offer better fuel efficiency, especially the smaller and more compact models. If fuel economy is a priority, an SUV might be a better choice.

City versus Rural Driving:

Ute: utes can be more challenging to maneuver in tight urban spaces due to their longer wheelbase. They are often preferred in rural or suburban settings where space is less of a concern.

SUV: Smaller SUVs are generally easier to drive in city environments because of their compact size and better visibility, but obviously this will be different for larger SUV models.

Safety:

Both utes and SUVs come equipped with a range of safety features, but the availability and level of these features can vary between models and brands. Be sure to research and compare safety options when making your decision.

Price:

Consider your budget, as utes and SUVs come in a wide price range. Utes tend to have a lower starting price for basic models, but high-end models can be expensive. SUVs also vary in price, with luxury SUVs typically being more costly.

Ultimately, choosing between a ute and an SUV should be based on your specific needs and preferences. It’s advisable to test drive both types of vehicles and consider factors like cargo space, passenger capacity, towing needs, and how you plan to use the vehicle before making a final decision.

Additionally, research the available models and their features to find the one that best suits your lifestyle and requirements.

Demystifying Deposits: How much do you need to save before buying a new car?

Picture this: you’re cruising down the scenic coastal roads of Australia with the wind in your hair and the sun kissing your skin while your favourite tunes are singing through the radio.

Sounds perfect, right?

More than just a mode of transportation, a car is a real ticket to freedom, pride, comfort and adventure. However, the journey of hitting the open road always begins with navigating the financial side of car ownership, starting with saving for a car deposit.

In this quick car deposit guide, we’ll explore what a car deposit is, how much you typically need to save and share some reminders for when you’re putting down a deposit for your dream car.

What is a car deposit?

A car deposit is a lump sum of money that you pay upfront when buying or leasing a car. It’s a demonstration of your commitment to buying the car and is often required by dealerships and lenders.

Essentially, it serves as your initial investment in the vehicle, while the remaining cost will be completed through your choice of car financing method.

So, how much do you need to save for a car deposit?

The amount of the car deposit can vary, depending on several factors including:

• car price,
• lender’s policies and
• your credit score

Some lenders require a fixed percentage while others can be more flexible. A good credit score can also help with negotiating the initial deposit or even help you qualify for a no-deposit option.

Typically, car deposits can range from 10% to 20% of the vehicle’s purchase price. According to a Canstar Blue survey, the average spend for cars in Australia is $40,000. This means that the usual range of car deposits is around $4,000 to $8,000, depending on the factors mentioned above.

3 Tips to help you save for your initial car deposit

Saving for your dream car might seem daunting at first, but with some careful planning and discipline, you can reach your goal sooner than you think. Here’s how:

1. Set a clear goal.

   Start by determining how much you need for your car deposit. This involves considering your dream car and doing your research. With a specific target, it’s far easier to stay motivated.

2. Open a dedicated ‘car deposit’ savings account.

   Consider opening a separate savings account for your car deposit. This way, you can easily track your progress and avoid being tempted to use the savings for other expenses.

3. Stay disciplined.

   Because a car is a big investment, remember that patience and discipline are required. Try to stay focused on your goal and think of the exciting road trips and adventures that await you.

Once you’ve saved enough for your initial car deposit, the next thing to do is to be prepared for when you discuss your car loan and deposit with a lender.

Things to remember when putting down a car deposit

Do the necessary checks before paying.

Book in a test drive and make sure that you’re getting the right car. If you’re buying a used car, be sure to run a car history check early on.

Carefully examine the contract before signing.

Read the vehicle loan contract carefully and be wary of verbal agreements. This part may be a little tedious, but it can help you avoid car financing mistakes and save money in the long run.

Don’t be afraid to negotiate a car deposit.

Don’t hesitate to negotiate the terms for your vehicle deposit. In some cases, they may be willing to accept a lower deposit amount depending on your credit score and the car you’re looking at buying.

Saving for a car deposit may not be the most exciting part of car ownership, but all of the benefits that come afterwards are definitely worth all the effort.

With determination and careful planning, you’ll soon save up for your initial car deposit and find yourself behind the wheel of your dream car. Better yet, if you speak to us, we can help you through the process!

Find the right vehicle at the right price with Private Fleet

Private Fleet empowers you to gain all the benefits of a fleet purchase but as a private buyer.

Backed by decades of vehicle industry experience, fleet buying power and a network of car dealers across Australia, we are here to ensure that buying your next vehicle will be as straightforward as possible for you, whether you’re ready with your car deposit or not.

Shopping for a car is an enjoyable process – let us make it hassle-free, too.

Reach out to us today for a seamless and simple car-buying experience.

Disclaimer: The article is for informational purposes only and does not constitute financial advice. The content is not intended to be a substitute for professional financial advice, and readers are advised to consult their financial specialist before making any financial decisions. Readers are solely responsible for their own financial decisions and should conduct their own research and due diligence before making any investments or taking any financial action.

7 Tips for Negotiating Car Financing Terms

Buying a car is an exciting milestone – it marks the start of a new adventure.

While one of the major hurdles to owning a car has always been its price, the option to take out a loan and finance your purchase has allowed so many more people to enjoy that new car smell. However, navigating the world of car financing can be a daunting task. From interest rates to loan terms, there are various factors to consider when securing a car loan that fits both your budget and financial goals.

To help you make informed decisions and give you an added edge, here are 7 valuable tips to keep in mind when negotiating car financing terms.

1. Understand Your Credit Score

Before entering into negotiations, it’s crucial to know your credit score.

Your credit score plays a significant role in determining the interest rate you’ll be offered. Based on previous loan repayments, a higher credit score indicates that you are a trustworthy person to lend to, which often translates to better loan terms. So, to give you the best opportunity to secure more favourable terms, it’s important to obtain a copy of your credit report and review it for accuracy, and if there are any discrepancies, address them before applying for a loan.

Being aware of your credit standing empowers you to negotiate from a position of knowledge.

2. Shop Around for Car Financing Options

When looking for a vehicle loan, don’t settle for the first car financing offer that comes your way.

Instead, research and compare car financing options from various sources, including banks, credit unions, online lenders, and dealership financing. While each vehicle loan option may offer very different interest rates, terms, and incentives and some will be more favourable than others, by shopping around, you can identify the best deal that suits your needs and budget.

3. Get Pre-approved

Getting pre-approved for a car loan before visiting a dealership can give you far more leverage during price negotiations.

The pre-approval process involves submitting a loan application and receiving a conditional offer from a lender. Having a pre-approved car loan amount in hand gives you a clear budget and prevents you from overspending. It also shows dealerships that you’re a serious car buyer with little room for negotiation, which may lead to more favourable pricing.

4. Focus on the Total Cost

When negotiating car financing terms, it’s easy to get caught up in monthly payments. However, focusing solely on the monthly payment can lead to a longer loan term and higher overall costs.

After all, small monthly repayment amounts are only favourable if the term of the loan is likewise small.

That’s why it’s important to consider the total cost of the loan, including the interest over the life of the loan. For assistance, use an online loan calculator to estimate the total repayment amount based on different interest rates and terms.

5. Negotiate Interest Rates

Interest rates significantly impact the overall cost of your car loan. What is less obvious is that there is significant wiggle room for negotiation with your lender.

As such, you should research current market rates and use that knowledge to negotiate. Furthermore, if you have a strong credit score, you may have further room to negotiate a lower interest rate. Another handy tactic is to, if possible, bring evidence of competitive offers you’ve received from other lenders, as this can strengthen your negotiation position as well.

6. Be Wary of Add-ons

During the car financing process, dealerships may offer various add-ons, such as extended warranties, gap insurance, and protection packages. While some of these offerings can provide value, others may not be necessary or can be obtained at a lower cost elsewhere.

Don’t just tick the box. Instead, carefully review the details of each add-on and decide whether it aligns with your current or future needs. Remember, don’t feel pressured into purchasing extras that could inflate your loan amount.

7. Review and Understand the Car Loan Terms

Before signing any car financing agreement, carefully review all terms and conditions. Make sure you understand the interest rate, loan terms, monthly payments, and any additional fees. If you have any questions or concerns, don’t hesitate to ask for clarification. It’s essential to be fully aware of what you’re committing to before finalising the deal.

What more direct help to never regret a car loan choice?

To navigate the complexities of buying a car, it helps to have guidance from car-buying experts who can find you the best deals and make the experience seamless as you choose your dream car.

If you find that you still have general questions about car financing, our team at Private Fleet will be happy to answer your concerns and help you find the best deals for your car purchase.

Simply reach out to us and we can have a chat about your options.

Find the right (and affordable) vehicle for you with Private Fleet.

Private Fleet empowers you to gain all the benefits of a fleet purchase, but as a private buyer.

Backed by decades of vehicle industry experience, fleet buying power and a network of car dealers across Australia, we are here to ensure that buying your next vehicle will be as straightforward as possible for you.

Shopping for a car is an enjoyable process – let us make it hassle-free, too.

Reach out to us today for a seamless and simple car-buying experience.

How to Choose Between a New and Second-Hand Car

We all know that feeling. Bringing home a brand new, spick and span car that you’ve just picked up at the dealership. It’s your pride and joy, with all the perks that come with a modern car.

Naturally, you’ll be content with your decision, but not everyone reaches the buying stage with as much ease. In this case, it’s worth tallying the pros and cons when it comes to buying a new car and second-hand vehicle.

Depreciation or security?

New cars depreciate in value as soon as they leave the dealership. When buying for private use, you may not be able to claim depreciation as a tax deduction.

Many people ignore this substantial cost because it is a ‘notional’ cost, whereby there is no cash impact after the initial purchase. Nonetheless, you shouldn’t overlook this cost, because a 40% haircut in value over the first three years is enough to dictate the flexibility of your ownership of said car.

Meanwhile, a new car offers security for a new owner. First of all, you are not buying someone else’s mechanical problems.

Secondly, if you encounter any manufacturing faults, these will generally be fixed quickly at no cost under warranty, particularly with manufacturers’ these days offering extended warranties of seven or even ten years.

Tying into this is a third point. Most of us need to take out a loan to pick up a ‘new’ set of wheels, even if it is second-hand. Typically, the interest rate on a new car is likey to be less than that of a used car, albeit this takes into account the higher purchase price that leads to higher interest costs over the loan.

The first owner of any car absorbs the steepest depreciation costs, so a second-hand owner benefits from a lower purchase price, a slower rate of depreciation, and lower insurance costs.

However, for all these savings, there are significant risks attached to buying a used car. These cannot and should not be overlooked. Not only is there a higher risk of incurring costs for unwarrantied repairs – and that owner’s manual is not easily verifiable – but maintenance costs are likely to be higher due to the car’s age.

Do you really want to run the gauntlet with the risk of a major mechanical failure a;ways looming?

Pricing or features?

New cars, particularly those made in the last few years, are substantially safer than older cars. They often have desirable features that a second-hand vehicle might not be equipped with. For example, modern-day essentials like autonomous emergency braking, reverse camera, rear-cross traffic alerts, blind-spot monitoring, and much more.

Some buyers achieve major savings while still enjoying most of the benefits of a new car by opting for a near-new demonstration model. In this case, you can find a car that is practically new but sold at a steep discount.

Alternatively, a ‘certified pre-owned’ vehicle can also bridge the gap between new and used. Pre-loved cars sold under this program are subject to rigorous inspection, and are usually covered by a manufacturer warranty.

At the end of the day, most buyers will come to a decision based on affordability. But the reality is, there are risks abound. You would almost be better served looking for a more affordable new car, than a discounted second hand that could be hiding all sorts of problems.

If you do opt for a used car, however, be sure to have it thoroughly checked out by a mechanic before you agree to purchase it, and don’t be afraid to walk away from the deal if things don’t stack up.