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May 16, 2024

Buying a Luxury Car as your next vehicle

Admit it – when a sleek and beautiful luxury car glides by as you’re walking, you stop and almost enter a trance. You admire its subtle curves, and promise of power, and imagine that’s you behind the driver’s seat. Perhaps you’ve saved up enough of a deposit or have landed a big pay rise and now’s the time to pull the trigger on that luxury vehicle you’ve always had your eye on. Is it the same as buying a “normal” car? What do you have to look out for? Here are some tips for getting the best deal as well as other bits and pieces to look out for.

What kind of luxury are you after?

When we say a luxury car, it means different things to different people. Some may think of plush saloon-style cars such as Mercedes-Benz or BMW; others think of performance vehicles like Lamborghini or Bugatti. You can even think of the highest of the high-end like Rolls-Royce or Bentley. Cars are much like watches; a $100,000 Audemars Piguet Royal Oak is less accurate than a $29 Casio F-91W. We’re buying the comfort, the prestige, and the thrill – so figure out what is the most important aspect of your car wisely and go from there.

Taking a test drive

To get a feel for a luxury vehicle, you need to take a test drive. Is it plush enough to warrant your price tag? Does it have the grunt you’re after? What about the bells and whistles – or is a simple charm inviting? Don’t ever blind buy a luxury car – even if you choose to import it from elsewhere.

Negotiating a bargain

If you are buying locally, you should approach dealers during the week instead of the weekend and around the end of the month. It gives you more time to haggle and salespeople may feel compelled to meet your price if they have a quota to fulfil. Keep an even keel, read the fine print, and be prepared to walk away if you don’t feel comfortable.

Getting finance ready

When getting finance ready for your purchase, be up to date with average interest rates so you know what is available ahead of time. You may want to consult a specialist luxury car loan broker so they can source bespoke finance packages that suit your needs. You could save money with a sizeable deposit or a trade-in for the dealer.

The dreaded Luxury Car Tax and long-term costs

If you are buying a car with a GST-included price above $76,950 (or $89,332 for fuel-efficient vehicles) you will be paying a 33% luxury car tax (LCT) above that threshold. You either pay that at the dealership or after the fact if you import your car from elsewhere. You also need to be mindful that most luxury cars will not run well on RON 91 fuel and need at least RON 95, ideally 98. You also have to pay high premiums for insurance and secure storage if it isn’t your daily driver. Other costs may include servicing, which can run well into four figures if you buy performance vehicles overseas.

With all this in mind, you can get a great deal on your new luxury vehicle!

Instagram / #Luxurialife