New mobile phone app helps you choose the right car
Buying a new car is big decision and nobody wants to be ripped off, but how do you steer clear of the tricks, traps and hidden expenses?
A new smartphone app from the Australian Securities and Investments Commission is now able to help consumers find a car they can actually afford.
ASIC Money Smart Cars allows car buyers to calculate the price along with ongoing running costs like registration, petrol usage and insurance.
Once your details are entered, you'll be given a total monthly cost and shown how much you’ll be set back over three years.
ASIC senior executive Laura Higgins said car yards make very little money from the car itself.
“They make all their money on insurance add ons, paint protection, those sorts of things,” she said.
“Take the time, slow down your decision and make sure it’s a car you can afford and you're not paying for more than you need to.”
Aside from purchasing a lemon, some of the biggest traps car buyers fall into are:
. Lost value on new cars - On average you'll lose 11 per cent value the second you drive out of the car yard.
· Car yard finance - Avoid going with the car yard's finance option as these are often higher in interest rates.
· Negotiating novices - Experts say you can usually knock 10 to 20 per cent off the sale price.
The Australian car industry is worth a whopping $37 billion with nearly 1.2 million cars registered to new owners in 2017.
The ASIC Money Smart Cars app is available on Google Play and the Apple App store across Australia.
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