BSB 806 015

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BSB 806 015

Buy a car

Step 1: Deciding which wheels are right for you

To make the most of living in Western Australia, it really helps to have a car. Your lifestyle and budget will help you determine what is the best option for you. If you love getting off the beaten track and going camping, a 4WD makes perfect sense. However, if your idea of exploring is checking out Perth newest cafes, you might be better off with a zippy little hatch that’s easier to park and cheaper to run.

It’s important to consider the running cost of your car, not just the purchase price. Fuel consumption, servicing costs, rego and insurance are ongoing and can really add up. If you are also planning on saving for a home deposit or holiday, you might want to rethink the V8 for something more economical to run.

It’s also worth adding up how many kilometres you do a week. If it’s getting up there, it could be worth paying a little more for an electric or hybrid car.

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Step 2: Should you buy a new car or second hand?

Ahh, there’s nothing like that new car smell. You have the thrill of being the first person to own your car, and the security of knowing it is covered by the manufacturer’s warranty. The downside is your car may lose nearly 20% of its value as soon as you drive it off the lot.

If you want to minimise depreciation, look at buying a one or two-year old car; it should still be under warranty, but could be 20 to 35% cheaper than new. Or if your heart is set on new, look for ‘drive-away’ deals where there are no dealer delivery costs or registration fees.

If you’re considering an older car, it’s worth paying to have an RAC or mechanic’s inspection. They’ll give you the heads up about what sort of repair costs you can expect in the future. That bargain may actually be a beautifully polished money pit!

Want a hand with car hunting?

Overwhelmed by all your options? Our free independent professional car buying service, Carsearch, works with you to find the right car, at the right price. New or used, we’ll negotiate you the best buy.

Step 3: How will you pay for it?

How much can you borrow?

Not many people are in the position to pay cash for a car. The rest of us need to finance all or part of it.

A Personal Loan Repayment Calculator can help you figure out what your minimum weekly, fortnightly or monthly loan repayments would be for any borrowed amount.

Don’t forget to leave room in your budget to cover your car running costs, as well as repayments.

Try the loan calculator now

Reach your budget goals

Saving a deposit will help minimise your repayments. We can help with that too.

P&N Bank offers special savings accounts with competitive interest rates to help you achieve your budget goal sooner.

Make saving simple

For a clearer picture of where you can make savings, it pays to have a play with our budget planner calculator.

Start budgeting today

Step 4: Organising a loan and insurance

Get your finance pre-approved

You are in a much stronger position to negotiate a deal on price if you already have your finance pre-approval.

P&N offers competitive interest rates combined with product features that can help you if you're thinking of buying a car.

Want to see just how good our rates are?

Protect your purchase

A car can be one of the biggest assets you own. You’ll feel a lot more relaxed on the roads if you know yours is protected by a comprehensive insurance policy. We can help you out with access to that as well.

If you’re planning on towing a caravan or boat, we can also make sure they’re covered.

More about car insurance

Step 5: & other handy tips

Choose a secured loan

You’ll pay a much lower rate of interest if you choose a secured car loan versus an unsecured personal loan.

Learn more about our secured personal loan

Pay off your loan faster with these 3 great tips

  1. Make repayments weekly instead of monthly
  2. Use any spare cash for lump-sum loan payments
  3. Increase your loan repayments when possible

Check who owns the car

Make sure there is no outstanding finance on the car you want to buy.

If the bank is owed money on it, the bank owns it!

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