1. compare new car options： When you start looking for a new car, motorbike or scooter, the range of makes and models can be overwhelming. Price is not the only consideration when choosing your new vehicle. Fuel economy, safety rating and child restraints are also factors to consider.
2. new car loans and finance:
Before you sign： Finance deals for cars can vary significantly. Many traders can help you arrange finance, but it may be in your interest to shop around and check rates and fees offered by banks, credit unions and other finance providers.
It is important that you make the contract of sale conditional upon finance approval.Read the finance agreement carefully and make sure you understand it. Ensure you are aware of: •all fees and interest rates •repayment rates and due dates for payment •the total amount you will have paid at the end of the loan period •all insurance requirements.
Your rights and responsibilities： Providers must inform you of your rights and responsibilities before you enter into a credit arrangement with them. They must provide all relevant information including interest rates, fees and commission, in a written contract.
The National Credit Code, which applies to most consumer finance transactions, sets out your rights in this and other respects.
What if you cannot pay off your loan? Consumer credit insurance or loan protection insurance can cover you if you are unable to make your loan repayments because of illness or unemployment. However, this sort of insurance can be expensive. Shop around for the best deal and make sure you understand any limitations on the cover period.
If you are finding it difficult to repay your loan, you could ask your credit provider for a hardship variation. This can involve postponing your repayments or seeking a reduction in instalments. If your credit provider turns down your application for a hardship variation, and your credit contract is covered by the National Credit Code, you can apply to the Victorian Civil and Administrative Tribunal (VCAT) to have that decision reviewed.
Some loan arrangements may ask you to put up your property as security. If you do so and are unable to repay your loan, enforcement action may lead to the property being taken by the credit provider. If the car itself is the security, it can be repossessed. It can also be sold for less than you owe, and you can end up owing your credit provider the difference.
3. car contracts and deposits:
Before you sign： The agreement for sale, or contract, is a legally binding document. Make sure you read and understand it before signing.
Contract details： Never sign a blank contract or one with any unfilled spaces. Insist all costs are clearly itemised.
Make sure a delivery date is specified, otherwise you may have a long wait for the vehicle. If the dealer cannot specify a delivery date, the contract should include a date after which you no longer wish to proceed with the purchase.
The contract should specify the vehicle’s colour and any other particulars or optional extras. If you want to buy a car manufactured in a particular year, then you should also specify that in the contract.
Deposits： It is common practice for licensed motor car traders to take a holding deposit for the car when you sign a contract. The deposit amount may vary. Make sure you get a receipt for this money.
4. car insurance for new cars: Car insurance protects you against costs and liabilities if you are in an accident or your vehicle is stolen, damaged or vandalised.
Shop around： You do not have to purchase insurance through a licensed motor car trader; it may be cheaper to arrange your own. Contact other insurance companies to compare the cost of insurance (the premium) and policy coverage. Premiums vary between car makes and models. Insurance may be more expensive for cars bought under finance and for modified sports cars. You may also pay more if you or someone under the age of 25 will be driving the car.
Types of car insurance： There are three main types: •Comprehensive insurance offers the greatest protection, and covers you against fire, theft, accident damage to your car, and damage to other cars and property. •Third party property insurance covers you against damage caused to other cars and property. It does not provide any protection for your car. If you are considering this type of insurance, you should also ask for information on ‘uninsured motorist cover’. This partially protects you against damage to your car, to a limited amount, if an uninsured driver is at fault. Other conditions may also apply. •Third party property, fire and theft insurance is similar to third party property insurance, but with additional cover for damage to your car caused by fire or theft. Before signing your insurance policy, make sure you read the policy booklet and product disclosure statement. These documents will specify conditions such as who is allowed to drive the vehicle you are insuring.
Policy cancellation or claim refusal： Your insurer may cancel your policy or refuse your claim if you were under the influence of drugs or alcohol at the time of an incident, or you did not disclose: •modifications to your car •your accident history •prior driving conditions or offences •personal disabilities.
5. warranties:
Manufacturer’s warranties： If you purchase a product or service and find it has a defect, the warranty sets out what you can claim and how you can claim it. All new cars come with a manufacturer’s warranty covering any faults and defects. Study the warranty carefully, as details such as the length of the warranty period vary. Identify and correct any faults at the first mechanical service, which should occur soon after delivery.
Repairs： If repairs are required during the warranty period, we suggest you take the vehicle back to the authorised dealer. However, scheduled services can be done by qualified independent mechanics without affecting the warranty, provided: •the work is done according to its conditions (manufacturer’s specifications), and •genuine parts and lubricants are used. The Victorian Automobile Chamber of Commerce (VACC) and RACV can provide more information on mechanics.
Extended warranties： Dealers may also offer extended warranties at the point of sale or at the end of a manufacturer’s warranty. These warranties extend the coverage provided in the original manufacturer's warranty, usually at an additional cost. Note that extended warranties are optional.
Extended warranties may restrict your choice of mechanic and parts used, or lock you into a service schedule with a specific dealer or group of dealerships. Note: regardless of the type of warranty you have (or even after a manufacturer's warranty expires), you still have protection under the Australian Consumer Law if you have a problem with your car.
Available at: https://www.consumer.vic.gov.au/cars/buying-a-new-car/warranties
