What are the best ways to finance your new car purchase?

If you’re looking for a sign to finally buy that dream car, this is it. 

Next to a home, a car is probably the biggest investment that you can make. It’s also an enjoyable and memorable experience too – but often, worrying about the finances can get in the way of fulfilling that dream. 

To help you prepare for the ride that is buying a car, we have listed some of the best ways to finance your vehicle purchase. 

Read on and find out which option may work best for you. 

Since buying a car is a big decision, you want to start by considering your circumstances, preferences and intentions before searching for a car that will take you either from A to B, accompany you on your next adventure, move the family or make an impression when cruising the streets. 

Depending on what you need, there are several car finance options that you can choose from to pay for your car. 

5 ways to finance your new car purchase 

1. Outright payment through savings
   

   This isn’t technically financing!

   Well yes. But we are adding this to the list because the most upfront way to pay for a car is by paying outright with cash using your savings. According to Canstar research, it takes around two years to save up for a car, depending on the model and make that you’re looking for.

   However, if you are looking for more options to finance your car, there are several available out there.

2. Applying for a loan
   

   The next option is applying for a car loan. This vehicle loan can be paid off through regular repayment over a period of time – which is usually up to 5 years. This is a good option if you’re buying a personal car as this loan can be used to finance the full cost of the purchase, which includes:

   ✓ on-road costs
   ✓ insurance
   ✓ warranties 
   ✓ loan protection

   Tip: interest rates for brand-new cars are typically more competitive than interest rates for used cars.

3. Car Finance Lease
   

   If you’re looking for low or no deposit terms, another option is to apply for a car finance lease. With a vehicle finance lease, terms can be set and with fixed interest rates, repayments can be budgeted throughout the leasing term of the car. You also have an opportunity to own the car by the end of the term.

4. Commercial Hire Purchase (CHP)
   

   In a Commercial Hire Purchase Agreement, you are given the right to use the car in return for regular payments during the term. By the end of the term, you have the option to pay a balloon payment to transfer the title of the car to your name.

   Note: you can claim interest repayments as well as the depreciation of the asset – in this case, your car – when using a CHP.

5. Novated lease agreement
   

   Last on our list is another increasingly popular form of vehicle financing: a novated lease. The novated lease is a three-way agreement between yourself, your employer and the financier, where your employer will be responsible for the repayments using your pre-tax salary.

   To learn more about novated lease agreements, check out this article: Novated Lease and Leasing Explained. 

These are just some of the car finance options out there – but this is just general information only. The right finance option for you must take into account your unique circumstances and your goals for this purchase – so always do your research. 

While we can provide general care financing information, if you have any specific questions, it’s best to ask your financial professional. 

Ready to buy that new car? 

Whichever payment option you decide to choose, 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 your car financing options, 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. 

Make the most out of your car purchase with Private Fleet. 

Private Fleet empowers you to get all the fleet benefits as a private buyer. 

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

Buying a new car is a memorable experience – let us make it hassle-free, too. 

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

Should I Buy This Year’s Model?

When we think of the best time to purchase a new car, there’s often a lot spoken about the end of financial year sales, but the end of the calendar year is also a popular choice. Of course, that was mostly during the pre-pandemic era, as since then, the supply drought has hampered new car buyers negotiating power somewhat.

Nonetheless, cars that aren’t sold by the end of the calendar year will often enter the New Year with discounted prices. This is because dealers are reluctant to hold stock for a vehicle that in the eyes of buyers may been seen as superseded – particularly as months go by, and the vehicle still carries the tag of being last year’s model.

Why is the end of year a big deal?

One of the factors that often spurs this late rush to clear stock is the fact that models brought in from abroad can take several months to reach our shores. That has become an even bigger issue over recent times, with new car buyers facing waiting times in excess of a year for certain models.

In any case, cars may arrive carrying a build plate that differs from the period the vehicle is being sold.

Before the vehicle itself is available for sale, it requires certification and approval. Upon approval the vehicle is designated a compliance date, which can vary considerably against the build plate when all the above is considered.

Therefore, as the end of year approaches, the leeway becomes finer and finer. Dealers may be left with a couple weeks to clear a vehicle that has actually been held as stock on consignment for a period of months.

Last year’s model vs this year

So then, what about the particular differences between cars with a different build year? Are you necessarily missing out on anything by purchasing last year’s model, or a model that is about to be replaced?

When one considers the downside of purchasing an end-of-year clearance vehicle, the most prominent shortfall is often tied to the depreciation of the car and its resale value. These are both aligned to the year of the vehicle as opposed to the month it was from.

Secondary to that, differences vary depending on the manufacturer. In many instances, changes might be limited to cosmetics – differences in colour, interior styles, trims, etc. The changes could be functional, such as better sat-nav, electronic configurations, and so forth. Alternatively, differences could be more profound. Such examples would include things like improved fuel efficiency, engine tweaks, adjustments to the ride and suspension of the vehicle, advanced safety aids, and more.

With the above in mind, it becomes important that you do your homework to establish the build date of the vehicle in question (usually found under the hood on the VIN), as well as the specific trade-offs between an end-of-year model, and the forthcoming replacement. The most notable changes tend to occur in cycles. Mid-life upgrades tend to be modest advancements, while new generation releases are comprehensive upgrades. So the timing of your purchase could be the most influential factor.

And if you are opting to be one of the first to drive away in next year’s model, given lengthy wait times at the moment you’d better start your search early.

New Cars, New Year.

Happy New Year to you all!  2023 sees some brand new cars coming into view, and we’re set to observe a considerable increase in the number of EVs sold on our shores.  Here’s a brief look at some of the exciting cars and SUVs you can get your hands on in the near future!

Alfa Romeo Tonale

Here’s the first of the Alfas that take the special brand into EV mode.  The Alfa Romeo Tonale Hybrid kicks it off with its hybrid engine offering the new 48-volt hybrid propulsion system.  You’d expect an Alfa to be sporty, and the nicely designed compact SUV delivers on this front.  Comfortable interiors and decent technology make this a good way of upgrading into 2023.

BMW iX1

The smallest X model from BMW comes in as the X1, and the iX1 is the EV model with a battery range up over 400 km.  Nicely laid out interiors, an athletic driving style (typical Beemer), and a good dollop of performance make this a great new compact SUV.

BYD Atto 3

The BYD Atto 3 is a new kid on the block for Australia.  Being an electric medium-sized SUV with a decent range makes this an efficient EV for the new year.  The Atto 3 also offers a comfy interior and plenty of the latest technology and safety features.

CUPRA Born

CUPRA cars are exciting.  They have plenty of performance and are generally a well-priced product with high-end features.  This new model called the CUPRA Born is an EV with a handsome range of beyond 500 km.  The CUPRA Born is an exciting car to look at, and it comes with advanced technology and great connectivity.

Ford E-Transit

Ford’s lovable Transit has a new ticker with the latest vans now offering electric power.  This is a brand new, full-size, pure-electric E-Transit that features a 68 kWh battery and a driving range of up to 317 km.  Ford say that it is possible to fast-charge the E-Transit from 15% to 80% in a bit over 30 minutes.

GWM Tank 300

One of the best vehicles to come out of 2023 will be the impressive looking GWM Tank 300.  Doesn’t it make a statement!  The Tank is powered by a 2.0-litre petrol-electric hybrid system, and the internal-combustion engine offers a juicy 180 kW.  Nappa leather, all the tech, and very handy off-road makes this a hugely appealing.

Lexus RX

Toyota has their luxury Lexus brand offering their latest RX.  If you’re wanting a new hybrid, these are some of the best ones out there.  Toyota make a great hybrid powertrain with smooth performance and impressive efficiency.  The RX interior sees an updated luxury interior design with ever-impressive build quality.  The RX is roomy too and very comfortable.

Maserati Grecale

Maserati is becoming ever more affordable.  That’s a great thing because they make great cars.  The new Maserati Grecale is a front-engine, medium-sized luxury SUV that comes with the promise of plenty of performance.  Three engines are available: two 2.0-litre petrol motors and a 3.0-litre V6 petrol.  Generous on the equipment levels, the Grecale will be rewarding to drive.

MG4

MG offers the new MG4 hatchback this year.  It is an affordable electric hatchback that has been packed full of innovation, style, technology, and an impressive 440 km driving range.

Nissan X-Trail E-Power Hybrid

Nice to look at, and equally at home off-road as it is on, the Nissan X-Trail E-Power Hybrid SUV is very comfortable and very well-equipped.  Rear cargo capacity in the 5 seat version of this awesome SUV is 575 litres (super handy for a family).  A 7-seat option is also available.  The entry point model is a mild hybrid version and uses a 1.5-litre petrol most of the time.  The other powerplant uses the same 1.5-liter ICE, but it doesn’t connect to the wheels directly.  Instead, it becomes the electrical generator of the system that works in unison with a small battery operating as a buffer.  The wheels are fed power via electric motors.

Renault Kangoo

Renault’s new Kangoo definitely can do, especially with its brand new E-Tech EV versions becoming available for the Australian market.  This will be Australia’s cheapest electric van.  The E-Tech has a 90 kW/245 Nm electric motor that drives the front wheels via a single-speed transmission.  You should easily run about town for well over 250 km before needing to recharge.

Keep your eyes open for these new models travelling our roads and on showroom floors across Australia.  Also keep your ears open via Private Fleet, where we’ll keep you up to date with what other new models are coming our way shortly.  All the best for 2023!

Some More Exciting Mazda News

If you are anything like me, then you’ll be driving along the highway spotting the cars coming the other way.  One of the snazzier brands out on the roads would have to be those from out of Mazda’s showrooms.  Mazda’s great variety of models all look great and boast some striking modern designs.  Even the new Mazda BT-50 ute, a very reliable workhorse, is looking pretty slick, and so too the family-oriented new Mazda 6 Sedans and Wagons.  Mazda also offers a wide range of brand new SUVs with sharp looking exteriors and endearing interiors that are well-equipped.  The small MX-30 is one of these SUVs, and it also has some cool new materials used inside the cabin – like the cork inlays that offset nicely against the premium leather trim.

Toyota, Mazda, Kia, and Hyundai sell the most cars in Australia; Toyota being out in front by a decent margin, with Mazda coming in at second place.  For quite some time, in Australia, Mazda has been a popular vehicle to buy.  Mazda’s 2022 sales of 43,687 are down 9% on this time last year, though Mazda retains its 2nd placing to Toyota’s 1^st place for overall sales.  Sales drops have occurred right across the market, thanks to the shortages of components and current logistical issues.  Mazda had sold 101,119 vehicles in 2021, quite a large portion of the whole pie, considering all the brands that are available to buy new in Australia.

So, what’s some hot off the press Mazda news?

You may have noticed a tidy looking compact SUV running our roads the past couple of years.  Mazda’s MX-30 is one of Mazda’s newer creations in recent times – gaining in popularity too.  The little Mazda MX-30 has been a key model for Mazda in that this has been Mazda’s model of choice for bringing new technologies, hybrid motoring, and EV motoring into their modern fleet of vehicles that will also lead them in a new direction for future motoring.

As the direction of future transport trends toward cleaner engines and lower emissions, Mazda launched a series of mild-hybrid powertrains.  We saw these first being used in the Mazda 3 and Mazda CX-30.  The Mazda MX-30 provided a mild-hybrid engine, but Mazda also made available their brand new pure-electric drivetrain available for the MX-30.  Designed purely for an emissions-free city commute, the Mazda MX-30 Electric uses its 107 kW to whistle up to 0-100 km/h in 9.7 seconds and up to a top speed of 140 km/h.  The driving range proves to be over 175 km, a handy dollop of motoring before recharging needs to happen.

Some other new Mazda technology which will be implemented will be that of a new small rotary engine as a supplementary power source.  With a NEDC (New European Driving Cycle) accredited range of 224 km, this will provide Mazda-buyers with another means of excellent low-emission city transportation.

Mazda’s approach to electrification is based on the customers’ demand for EVs, and the regional infrastructure available to support them.  Within 5 years, Mazda hope to introduce a new hybrid system alongside more battery-electric models in their line-up of new vehicles.  This is in response to the newer European emissions rules that come into effect.

Towards the end of this decade, Mazda’s entire line-up will offer fully electrified versions.  One model that has been talked about as being another exciting Mazda EV will be the little MX-5’s progression into EV powering.  Now that’s a tasty thought!