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Ways to pay


Ways to pay

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Ways to pay

The general rule about borrowing money is: the longer you take, the more you pay. Only borrow as much as you need, and don't over-commit. We can assist you through NRMA Car Loans.

  • Pay as much as you can up front - in cash or as a trade-in - and pay less interest.
  • Shop around for the best finance deal - you don't have to use the finance company suggested by the dealer. Dealer finance can cost you a lot more, especially if the first year's insurance is included in the total amount.
  • Consider leasing or hire-purchase, particularly if you're in business. You may be eligible to claim some of the interest and running costs as tax deductions. Talk to your accountant or business adviser before entering into a lease or hire purchase agreement.

Agree on a trade-in value

Trading in your car for another is easier in some ways than selling privately but it does have its drawbacks.

The main one is that you probably won't get as much money for it. After all, the dealer has to re-sell your car for a profit - and that's after fixing any faults.

Trade-ins can also be confusing. For example, the amount offered for your old car could include a discount on the car you're buying.

  • Ask for the total changeover price - how much you'll pay to leave your old car and drive away in a new one. When all is said and done, that's the only figure that matters
  • Ignore dealers' negative comments, such as: "nobody wants to buy that model anymore" or "your car isn't in very good condition". These are often just sales techniques to get you to accept a lower offer
  • The trade-in value of your car may only be valid for a certain time (eg, 28 days). Check if the trade-in will be revalued if the dealer can't deliver your new car in that time
  • You could - if you have time - get a trade-in price from the dealer, then try to sell it privately for more. You might have to wait a few extra weeks to get your new car but selling privately may well save you some money.

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