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Choosing the Right Car
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Australians are spoilt for choice .
MORE than 50 new car brands compete for consumer dollars, offering dozens of new models to suit needs that are real or imagined. Even if you narrow it down to a specific model – say, a Holden Astra for example – there’s a range of bodystyles and different engines to choose from. And we haven’t got to the colour palette yet. Then, of course, there’s the used-car market. Two in every three cars bought and sold are used cars. By 2005 standards that means Australians bought and sold more than two million used cars – one for every 10 people. But don’t go into mental meltdown just yet. There are a few easy steps that can help you navigate the automotive forest to find the car that suits your needs perfectly. First up, think carefully about what you will use the car for: commuting, family moving, personal chores, holidays, sports and recreation, business, etc. Chances are, some or all of the above, right? But some categories will take precedence over others. How many people do you need to carry? Is a big boot important for the golf clubs, musical instruments, dogs, shopping, etc? Will you venture beyond the bitumen? Do you need power, or is fuel economy more important? Is safety a priority overn size? Do you need to tow? It’s all worth considering before you buy, because the more requirements you list, the easier it becomes to choose the right car. Last, but not least, don’t forget to let your emotions have a say. A car is the second most expensive purchase most of us will ever make, and to spend that much money on something we don’t like is just silly. Emotions are important; you should, after all, enjoy your car. Emotions, however, should not override practicalities — otherwise your car will end up complicating your life when it should be improving it. Essentially, the thought process can be distilled into five basic questions:  1. Sedan, wagon, coupe or 4WD? What will the car be used for? Don’t fall into the trap of trying to find a vehicle suitable for every possibility, because it hasn’t been built yet. Try instead to cater to the majority of your requirements. So, for example, it would be of little value for parents of three kids to buy a sports coupe; equally, an inner-city single would have little use for a big four-wheeldrive. Or maybe not. Only you know your specific needs, so only you can decide what type of car best meets those needs. 2. New or used? Do you want the security of a new-car warranty? Are you prepared to lose around 30 per cent of your brand new car’s value in the first three years? If so, a new car is for you. If not, then you can save thousands buying a near- new, second-hand vehicle that has already depreciated in price. And, if you buy from a reputable dealer, you’ll typically get a six-month warranty to cover any early mechanical mishaps (may vary between states). 3. Petrol, diesel or hybrid? The type of fuel you choose will depend largely on what is available after you’ve decided on a body style in section 1. Many passenger cars and most four-wheel-drives have petrol and diesel options. Very few cars are currently available with petrolelectric hybrid engines, though that will change in the future. The question is one of driving preference and of dollars. Does the fuel savings of a diesel engine justify its (usually) higher retail price? Some diesel cars can travel 60-100 per cent further on one tank of fuel compared to a petrol counterpart, which can mean a saving of up to $40 each time you refuel. Now, while that sounds like a done deal, some diesel versions – take the Volkswagen Golf, for example – cost $3000 more than the petrol model. So, based on an average person’s annual mileage of 15,000 kilometres it’d take more than six years to recoup the extra initial outlay. Think carefully. 4. Grey imports explained Now here’s a narky one that can be a real windfall, but one wrong step and you could end up with a lemon. Grey imports can be a way to get into a model that was never officially sold in Australia through a dealership. That means you can have something a little bit different and, often, something with a performance slant that was never sold in Australia when new. Most grey imports arrive from Japan, and many are cars that have been crashed heavily then repaired. So the prices are usually fairly tempting, especially once you start comparing similarly priced models. But, as always with something that seems too good to be true, there is a catch. And, in the case of grey imports, there are many catches. Because there aren’t many around and they were never officially sold here, it can be extremely difficult to source spare parts for grey imports; dealers don’t hold them and no warranties are offered by the manufacturer. Even if the car appears identical to one sold through a dealer locally, the parts may not fit or be relevant to the grey import. That can also affect insurance premiums and in some cases make them difficuly to repair. Grey imports also do not have to meet all of Australia’s regulations regarding motor vehicles, particularly those involving crash-test regulations. Then there’s the issue of selling it once you’ve had enough. Because of the nuances of owning one, not everyone is prepared to endure the hassle of owning a grey import, so that is likely to be reflected in the price. Which is why they are generally more appealing from a price perspective in the first place. 5. The value of brands Choosing the right brand can bring more reward than the obvious kudos gained when the neighbours see your shiny new BMW. It’s called retained value, and companies such as Glass’s Guide make their living tracking such numbers. Simply put, different cars from different brands devalue at different rates. Drive a Hyundai off the lot, and within seconds it will have lost a third of its value. After three years the car’s value will be less than half what it was new. Drive a Porsche off the lot, particularly a hardto- get new model, and it will lose little of its value, if any. In some cases the car’s value can actually increase, but that’s such a rare occurrance it justifies no more of our time today. In simple terms a car’s retained value is how much someone else will pay for it. It is influenced by a number of factors, including which company built it, where it was built, the vehicle’s reputation, owner care and distance travelled. drive.com.au 
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