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ASIC’s Laura Higgins on buying a car

ASIC’s Laura Higgins on buying a car

[Host, 9 News Perth]: Now if you are in the market for a new car, there’s a new way to check what it will really cost you – the ASIC app. It doesn’t just look at the vehicles price, it also calculates running costs year by year, so you can make sure you’re getting a deal you’re happy with. [Female voiceover]: Buying a new car is a big decision. But beware the purchase can be filled with tricks traps and hidden expenses. If you’re buying from a car yard, they make very little money from the car itself. Where they make money from is the insurance add-ons, the paint protection, all those sorts of things. [Female voiceover]: There’s no doubt the Australian car industry is big business. It’s worth 37 billion dollars. In 2017, 1.2 million cars were registered to new owners and 2.2 million of us plan to replace our current vehicles with a new one in the next four years. So it pays to do your research. Can you afford it? And do you have enough money to pay for that car now? Or do you need to take out a loan and understanding the impact taking a loan lone will have on your finances over time [Female voiceover]: One way to check is with a new tool from the Australian Securities and Investments Commission. The ASIC MoneySmart Cars app will calculate not just the price but the ongoing running costs, like rego, petrol usage, services and insurance. And at the end you’ll be given a total monthly cost and it will even break down how much the car will cost you over three years. [Laura]: Take the time. Slow down the decision and make sure whatever decisions you’re making, that it’s a car you can afford and you’re not paying for more than you need. [Female voiceover]: According to experts some of the biggest traps car buyers fall into are wanting a brand new car. On average you’ll lose 11% the second you drive those new wheels out of the car yard; going with the car yards finance – because it’s easier, the interest rates are often higher; and not knowing how to bargain down the salesman. Experts say you can usually knock 10% to 20% off the sale price. And the final advice from experts: [David]: The way to compare is on fees and interest rates. We have a really, really competitive marketplace, make sure you’re comparing the market and getting the best deal every time. [Female voiceover]: Kelly Haywood, 9News.

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