What to ask before buying your next car and how to avoid overpaying

Buying a car ranks among the biggest financial decisions most Australians make. Yet many of us approach it with far less preparation than we’d bring to buying a home or planning a big event. 

Often, the decision to buy a new car is forced by circumstance: a growing family needs more space, or an ageing car starts costing more to maintain than its worth. Whatever the trigger, the pressure to move to a decision quickly can compromise the best outcome.

The traditional dealership model hasn’t changed much in decades. You turn up to a showroom, a salesperson runs the meeting, and before long you’re being steered toward extended warranties, paint protection packages and finance products you're not sure if you need. While there are plenty of excellent, transparent dealers, the playing field often tilts toward the seller, not the buyer.

The good news is you can redress the balance with a little preparation. Here’s what to think about before you set foot in a showroom.

Ask yourself the right questions

The clearest advantage you can give yourself is to do the work before speaking with a salesperson. That means sitting with yourself or your family and getting specific about what you actually need.

Questions to consider prior

• What do I need versus what do I just want?
• Has my life changed since I bought my last car: family size, commute, how I use weekends?
• Which compromises will I regret in year three or four?
• Have I test driven this vehicle in real-world conditions as opposed to around the block?
• What will I live with for the next five to seven years?
• Have I thought beyond the sticker price versus what the car costs me each month to run?

It sounds obvious, but buyers who have confident answers to these questions are much harder to upsell. When you know that you need seven seats, or that you’re doing 25,000 km a year on country roads, or that you’ve just moved somewhere with a skinny or steep driveway, you can steer the conversation to your advantage.

What to ask at the dealership

Making the most of the test drive

The test drive matters more than most buyers think. Don’t just drive it on the dealer’s suggested route on a quiet Sunday. Load it with your family, take it on the road you drive every day, park it in your driveway to see if it actually fits. Most dealers will agree to this kind of thorough test drive if you ask for it.

Read more: Tips for taking a test drive

The price on the sticker is rarely the full story

Driveaway pricing is the important number for the buyer but the dealer will rarely lead with it. On-road costs, stamp duty, CTP insurance, registration and dealer delivery can add thousands to what looked like a competitive advertised price. Always ask for the total figure before you compare anything.

The same goes for extras. Dealers regularly fit accessories like floor mats, paint protection and window tinting before a car hits the lot. Some are genuinely useful but others are high-margin additions you may not need. Ask for the itemised base price before extras, and decide which additions actually suit your needs.

Don’t forget what the car will cost you to own

Purchase price is just one number in a bigger equation. Two vehicles with similar sticker prices can have very different costs of ownership over multiple years.

• Service costs: Some manufacturers offer fixed-price servicing or capped-cost maintenance plans, while others don’t. Know what you’re committing to before you sign, particularly if you’re buying a brand you haven’t owned before.
• Real-world fuel use: Official consumption figures are measured in lab conditions. Ask your dealer for real-world owner data, or check owner forums and independent reviews for vehicles you’re considering. For electric vehicles, factor in home charging costs and whether your setup (rental, apartment, older home) makes that practical.
• Insurance: Before buying, get a quote. Some vehicles – particularly certain SUVs and performance models – attract significantly higher premiums than comparable alternatives. If you’ve had a recent claim, your premium may already be higher than usual, so it’s worth understanding the full picture before adding a new vehicle. A five-minute call to your insurer before committing can avoid an unwelcome surprise.

Most buyers only speak to one dealer

Australian car buyers now typically visit just two dealerships before purchasing down from five a decade ago. While this is understandable given time and life pressues, it really does pay off to take your time. The most effective negotiating position you can take is a competing offer from another dealer for the same vehicle spec. That single document changes the conversation entirely.

If that sounds like more legwork than you have time for, there are now alternative approaches to car buying that put the comparison process on the other side of the equation – where dealers compete for your business, rather than you competing for their attention.

Let dealers come to you

Motor Scout is a free car buying service for My NRMA Rewards members that works differently to the traditional dealership model. Tell them what you want and their dealer network competes to offer you the best price – no showroom pressure, no information asymmetry, no chasing quotes across town.

Whether you use a service like Motor Scout, negotiate directly, or do your own research across multiple dealers, the principle is the same: the more informed and the more compared your decision, the better the outcome.