If you’re in the market for a new vehicle or a big upgrade from what you currently have, 2024 will be an exciting year. For those looking to upgrade to an Electric Vehicle (EV) from a traditional petrol car will have more choice than ever, especially with low cost models from BYD, GM, and Ford coming to our shores. But what do you need to know when upgrading your vehicle in 2024? We delve into that and more, including affordability and finance tips.
EV or ICE? Futureproofing your Purchase
With fuel prices at record highs relative to charging an EV – and EVs gaining more and more range as technology advances, you may be considering upgrading from an Internal Combustion Engine or traditional petrol/diesel vehicle to an EV. EVs, at least in 2024 cost significantly more than ICE equivalents. However, you do recoup your outlay in reduced charging and maintenance costs – with maintenance on an EV being up to 70-80% cheaper than ICE cars.
Setting your Budget and Use Case
Before jumping at the first car you see, you need to assess what you’ll be using the car for now and into the future. Will a two-seat coupe cut it when the baby (or babies) is on the way? Will you be taking it off-road or towing a caravan? Do you really need a satnav cluster when an after-market Apple CarPlay or Android Auto display can do the trick? What’s nice to have versus what’s a must-have? Weigh all these up against what you can reasonably afford each month in repayments.
Checking your Credit and Repayments
Before you approach your bank or car loan brokers, you should get your documents and credit check in order. You might get a nasty surprise if you apply for a car loan and your credit isn’t as great as you thought it was. This might mean accepting a lower borrowing amount and/or higher interest rates. Knowing what interest rate you’re eligible for will help you determine loan affordability on your part. Use a calculator to estimate what you can afford while adding fuel, insurance, registration, and servicing.
What’s the Final Price?
Many dealers will entice new customers by advertising cheaper “sticker prices” while hiding the total cost. To get the real amount that you’ll pay once you’ve signed a contract, you’ll need to ask a dealer what the “driveaway” price is – because you need to factor in stamp duty, driver delivery, registration, and CTP (depending on your state) if you only get the sticker price. You can also negotiate a lower overall price by having your dealer include these costs. It’s best to approach a dealer at the end of the month or year to get the most benefit. You can also drive a bargain away if you choose a car that’s already on the showroom floor. Dealers need to push older models out as soon as possible, so just don’t let on you’re doing them any favours!
