10 tips for buying a new car

Keep these tips in mind so you can drive away with a better deal.

It’s sometimes said that car dealers can smell an uninformed customer when they walk in and will start circling them like sharks. Depending on what your local dealership is like, this might only be a slight exaggeration.

You don’t have to be a car enthusiast to be a well-informed, hard-haggling customer. Paying attention to these ten quick tips can make a real difference to your car and your wallet.


1. Buy a car at the end of the month or at the end of the financial year

Plan your purchase, but don’t sign on the dotted line until near the end of the month. Many car dealers operate on monthly sales targets and may be more likely to offer discounts and free extras around this time to help meet their targets.

You can save a lot by purchasing a car during the EOFY car sales. The automotive manufacturers and dealers offer special deals and also throw in optional extras worth thousands of dollars for free.

2. Be serious about safety

ANCAP safety ratings are no joke. These ratings determine how likely an accident is to injure or kill you, and the differences between safe and unsafe cars are enormous.

More importantly, it can also affect the cost of car insurance. If you’re after a more cost-effective drive and you want a safe vehicle, avoid settling for less than a 4- or 5-star ANCAP rating.

3. Do your homework on the car you want

Learn about your chosen car's typical drive-away price before you buy, as well as which extras are tacked on and how much these are really worth. This gives you a baseline against which to haggle and consider “free” extras.

It also lets you determine how much haggling room is left when you’re quoted a price. You probably won’t get a good deal if you don’t take this step and if you do, how would you know?

4. Know the haggling dos and don’ts

  • Do keep your expectations realistic. You probably won’t haggle much off an already-discounted price.
  • Do keep it friendly and polite. Good manners go a lot further and sometimes a deal simply comes down to how much they like you.
  • Do leave your phone number, even if you walk away. They might come back to you with a better offer.
  • Don’t be afraid to walk away. If they’re not budging, find someone who will.
  • Don’t try low-balling them unless you’re ready to climb back up the price ladder.

5. Make dealers compete with each other

A lot of dealers might turn down an offer without hesitation, but would accept the very same offer when asked to match a competitor’s price. There’s always a better deal out there somewhere and dealers know it. Try to be in touch with more than one dealer before buying and let them compete for your business.

Know what car you want? A Car broker could save you money

With an established network of dealers, a car broker can source the vehicle you want and negotiate on your behalf to save you money.

6. Always do a test drive

There’s no substitute for a test drive. If you’re still deciding between different cars or models, test drive them all if possible. Never buy a new car without test driving it first.

7. Beware of unwanted extras

Dealers are always ready to generously throw in extras for free or at cost, to sweeten the deal. Think about the extras you actually want before buying and try to resist walking out with something you didn’t want.

Some of the extras you almost certainly don’t want are an extended warranty, rustproofing and paint protection. A new car already has all of these in some form and these extras are often just a sales trick.

The cost of car insurance changes a lot depending on what you’re driving. Common new cars, even the latest models, are often cheaper to insure than one would expect thanks to the availability of spare parts. Meanwhile, cars that don’t have more recent safety features such as auto braking or traction control, or cars with a poor ANCAP rating, can be considerably more expensive.

8. Check the fuel consumption

Check a car’s fuel consumption with the yellow sticker on the windscreen. This allows you to you to compare efficiency between vehicles and can give you a reasonable idea of what the car's operating costs might be.

9. Make sure all the boxes are ticked before you buy

Check off these tips before buying for better luck finding a deal, but when the pen’s in your hand and the dealer is salivating over your shoulder you should ask yourself whether you have:

  • Understood the terms and conditions. Make sure you know exactly what you’re signing up for.
  • Been to multiple dealers. If you haven’t, then you’re almost certainly not getting the value you could be.
  • Know what is and isn’t included. Be certain that you aren’t paying for unwanted extras and that you won’t be missing anything.

Your new car will need CTP insurance, and if you’ll be depending on it you might want to consider comprehensive car insurance instead of one of the more basic options.

10. Compare all your loan options

If you're planning on using a car loan or other form of finance to purchase your car, it pays to do your research. You have a lot of options when it comes to car finance, so it pays to understand how they differ, and what makes a loan more competitive than another. Along with the banks, many dealers offer car loans, and it's important to compare both to find the one that bests suits your needs.

Compare car loans for buying a new car

Product Finder Score Interest Rate (p.a.) Comp. Rate (p.a.) Application Fee Monthly Fee Monthly Repayment
Finder Score
Interest Rate (p.a.)
5.99%
Comp. Rate (p.a.)
6.34%
Application Fee
$274.78
Monthly Fee
$0
Monthly Repayment
$616.71
Borrow up to $125,000, pay no account-keeping fees and repay with fixed repayments while having the ability to repay early.
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Finder Score
Interest Rate (p.a.)
6.28%
to 18.99%
Comp. Rate (p.a.)
6.28%
to 21.78%
Application Fee
$0
min.
Monthly Fee
$0
Monthly Repayment
$610.98
Applicants with an Equifax credit score of 500 or above and an annual income of more than $25k are eligible. No ongoing or early exit fees. Loan amounts range from $5,000 to $100,000.
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Finder Score
Interest Rate (p.a.)
5.9%
to 18%
Comp. Rate (p.a.)
6.33%
to 23%
Application Fee
$395
Monthly Fee
$0
Monthly Repayment
$619.53
Your own personal car loan broker can help you borrow up to $300,000 for your new car by choosing from a range of finance options.
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RACV logo
Finder Score
RACV New Car Loans
Fixed1 - 7 Years $5,000 - $150,000
Finder Score
Interest Rate (p.a.)
6.59%
to 17.69%
Comp. Rate (p.a.)
7.29%
to 18.47%
Application Fee
$499
Monthly Fee
$0
Monthly Repayment
$629.11
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OurMoneyMarket logo
Finder Score
OurMoneyMarket Used Car Loan ($5,000-$100,000)
Fixed1 - 7 Years $5,000 - $100,000
Finder Score
Interest Rate (p.a.)
6.28%
to 18.99%
Comp. Rate (p.a.)
6.28%
to 21.78%
Application Fee
$0
min.
Monthly Fee
$0
Monthly Repayment
$610.98
Applicants with an Equifax credit score of 500 or above and an annual income of more than $25k are eligible. No ongoing or early exit fees. Loan amounts range from $5,000 to $100,000.
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Stratton Finance logo
Finder Score
Stratton Finance Used Car Loan
Fixed1 - 7 Years $10,000 - $300,000
Finder Score
Interest Rate (p.a.)
6.59%
to 18%
Comp. Rate (p.a.)
7.91%
to 23%
Application Fee
$395
Monthly Fee
$0
Monthly Repayment
$625.92
Applicants with an Equifax credit score of 500 or above and an annual income of more than $25k are eligible. No ongoing or early exit fees. Loan amounts range from $5,000 to $100,000.
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RACV logo
Finder Score
RACV Used Car Loans
Fixed1 - 7 Years $5,000 - $150,000
Finder Score
Interest Rate (p.a.)
7.89%
to 17.69%
Comp. Rate (p.a.)
8.6%
to 18.47%
Application Fee
$499
Monthly Fee
$0
Monthly Repayment
$641.32
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Compare product selection
loans.com.au logo
Finder Score
loans.com.au - New/Demo - Variable Rate
Variable3 - 7 Years $5,000 - $150,000
Finder Score
Interest Rate (p.a.)
5.99%
to 7.14%
Comp. Rate (p.a.)
7.12%
to 8.27%
Application Fee
$400
Monthly Fee
$8
Monthly Repayment
$628.52
Borrow up to $150,000 with rate discounts for electric and hybrid vehicles, flexible terms, early repayment options, and a 3-month pre-approval period.
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Compare product selection
OurMoneyMarket logo
Finder Score
Finder Score
Interest Rate (p.a.)
6.28%
to 18.99%
Comp. Rate (p.a.)
6.28%
to 21.78%
Application Fee
$0
min.
Monthly Fee
$0
Monthly Repayment
$610.98
Go to siteMore info
Compare product selection
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Finder Score for car loans

To make comparing car loans even easier we came up with the Finder Score. Interest rates, fees and features across 200+ car loan products and 100+ lenders are all weighted and scaled to produce a score out of 10. The higher the score, the more competitive the product.

Read the full Finder Score methodology

Compare car insurance side-by-side and get quotes

Product Finder Score Roadside assistance Accidental damage Storm Choice of repairer Agreed or Market Value
Finder Score
Agreed or Market
Summary: A great value policy with exceptional customer service. Youi won the 2024 Finder Award for Customer Satisfaction. It scored highly for features and benefits, customer service and reliability. It also automatically includes roadside assistance in its price - a feature that typically costs upwards of $90 per year.
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Finder Score
Market
Summary: Our data shows it’s the cheapest comprehensive policy. It just covers the basics such as damage to your car, theft and storms – it doesn’t go in for add-ons and extras.

Who it might be good for: Those wanting a low-cost, no-frills policy.
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Finder Score
Optional
Optional
Agreed or Market
Summary: Budget Direct Comprehensive is highly commended as a feature-packed car insurance. It's cheaper than most, plus you can lower costs by adding age restrictions.

⭐ Current offer: 15% off your first year's premium when you take out a policy online. T&Cs apply.

Who it might be good for: Anyone who wants a good value policy.
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ahm logo
Finder Score
Finder Score
Optional
Agreed or Market
ahm's Fixed Kilometre Plan is available as an add on with comprehensive cover
More info
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ahm logo
Finder Score
Finder Score
Optional
Agreed or Market
Summary: Its "pay as you drive" cover can save you up to 30% compared to its standard comprehensive cover. There's also no excess to pay if you hit a Kanga or other animal.

Who it might be good for: Rural drivers and those who drive less than 15,000 km a year.
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Bingle logo
Finder Score
Finder Score
Market
More info
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Virgin Money logo
Finder Score
Finder Score
Optional
Optional
Agreed or Market
Summary: Finalists for the 2021 Finder Awards for Best Car Insurance - Value in VIC, QLD, SA, WA and TAS, Virgin Comprehensive provides a good level of cover for a decent price.

⭐ Current offer: Get 15% off on your first year’s premium when you purchase a new eligible comprehensive car insurance online. T&Cs apply.

Who it might be good for: People who'd like to manage their policy online 24/7.
More info
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ROLLiN' logo
Finder Score
Finder Score
Agreed
Summary: One of the most cost-effective insurers for under 25s, according to Finder research, with no aged-based excess.

⭐ Current offer: Get 10% off the base premium for the first 2 consecutive monthly policies and up to a 15% potential monthly discount from your 3rd month for being a safer driver. Minimum premiums may apply. T&Cs apply. Learn More.

Who it might be good for: Young drivers looking to keep costs down and anyone who’d like to get more flexibility from their car insurance.
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Finder Score for car insurance

We analyse over 80 car insurance products and rate each one on price and features. What we get out the other end is a nice round number out of 10 to help you start comparing.

To make sure we're comparing apples with apples, we collect quotes for 8 different personas and analyse different car insurance features. Our team then does some fancy maths to get the Finder Score, taking both price and features into account. We analyse comprehensive, third party fire and theft and third party property damage products individually.

Read the full Finder Score methodology

Frequently Asked Questions

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Elizabeth Barry is an experienced journalist with over 10 years of expertise in personal finance, contributing to outlets like the ABC, Sydney Morning Herald, and 7News. She holds a Master of Arts in Creative Writing and a Bachelor of Arts in Communication from the University of Technology Sydney, and has earned multiple award nominations, including a Highly Commended recognition at the 2017 Lizzies. Elizabeth began her career at Finder in 2013, progressing through roles to become Lead Editor, where she oversaw a wide range of personal finance coverage until 2024. See full bio

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