Buying a new Car?

Make sure you get the best deal – regardless of the interest rate!

As a business owner, you may be attracted to the great deals out there to purchase imported cars and equipment due to the strong Aussie dollar, and put them to use in your business. A higher Australian dollar means that the cost of importing cars and equipment is lower. There are several ways vehicle and equipment resellers can pass on these lower prices. Traditionally, resellers apply a discount to the price of the asset and have run special promotions based on that.

Over the last few years, there has been a trend amongst resellers to offer low interest rates instead of passing on reduced prices. Some car finance rate offers in the market are as low as 0%. But with mortgage rates sitting at around 6.60%, the likely result is that resellers or manufactures are subsidising the rate.

 Whilst low interest rates look attractive, they do not necessarily deliver lower repayments for you.

Tracee Wilkinson at the Master Painters Association of Victoria comments, “We are definitely seeing a trend in the market where resellers are offering low interest finance deals.  Many of these are based on financing the Recommended Retail Price (RRP) which can be higher than if the customer was paying cash.  Customers may find that they are better off dealing with their bank for their asset finance and negotiating a discount on the actual cash price of their asset.”

So, if you are in the market to purchase a new car or equipment for your business, we suggest the following tips to help you get a good deal:

  • Allow time to hunt around for the best offer.
  • Discuss / negotiate the purchase price of the asset separate from financing. This will make sure you get the lowest possible repayment.
  • Read all the terms and conditions of any finance offers – including low rate offers.
  • Check to make sure the amount financed is the best cash price you can get on the market. A great way to compare is looking at some of the online classifieds to see what new cars or equipment are advertised at without finance offers.
  • All interest rate calculations are not necessarily the same. Compare repayments and the amount financed.

As a part of our partnership with the Commonwealth Bank, the Bank is waiving the Documentation Fee for Business Vehicle Finance of $30,000 or more for Master Painter Association VIC/TAS member until 31/12/2012.

 To find out more contact the MPAV on (03) 9813 5922.


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