Thinking of upgrading your car? Read this first!
If you have a car that is in perfect working order, then there are two factors that you should pay attention to when deciding on the perfect moment to upgrade.
1. The Warranty
If you take care of your car properly, then there really should be no need to take advantage of the warranty. However, some people like to have that safety net in place at all times. In this case, they will look to change their car before their coverage expires.
Most car manufacturers offer a 3 year or 100,000km warranty, while some go as far as 5 years with unlimited kilometres! You’ll want to change the car while there is still some warranty left on it (about a year is perfect) as this will increase its market value and make it much easier to sell or trade-in.
2. The Finance
Most Australia car buyers use car finance to purchase their new cars.
But why should this affect your decision on when to upgrade your car?
Many people assume that you can’t upgrade your car while you are still making car loan payments on it but this isn’t true! Once you pay off the loan in full (before the time of sale), then you’re good to GO!
Your payout figure (the amount you need to pay off the loan) will vary depending on the terms of your loan but usually; you will need to pay an early termination fee and any money outstanding including the residual payment.
Get in contact us with us today to work through your car finance and start planning your next ride!
Questions to ask yourself when you do decide to upgrade…
A change of vehicle may be dictated by changing circumstances, such as a new job or a growing family. The partner and kids (for example), are probably not going to appreciate your new sports car, however fast or exciting it is to drive!
If you’ve exceeded warranty coverage and are experiencing expensive ongoing maintenance, that’s likely to encourage you to want to offload your problematic car. Most people prefer to rotate their cars every three years, most of whom are no doubt tempted by that new-car smell!
Consolidating personal debts like credit cards or personal loans along with your car loan can save you a lot in interest charges. Rolling all of your current repayments into one simple payment could save you time and money straight away!
Plus get you the car you are dreaming of…