Financial tips for when you start your medical career
After years of study, the end is in sight. Before you start looking after patients and clients, here’s a few simple tips to ensure your own financial health.
Learn MoreDecember is a great time to buy a new car as dealers look to boost sales towards the end of the year.
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Why you may ask? With higher the sales, the more buying power the dealer has with the manufacturer - the result being attractive discounts or free upgrades for buyers. BOQ Specialist has a long history of offering unique finance packaging to take advantage of new car price reductions in December.
Our checklist to help you secure a smart purchase
1. Make a decision about your old car – trade it in versus private sale?
2. Do your research before you go to the dealers – know what you want
3. Be wary of test driving a model that exceeds your budget
4. Seek pre- approval from your finance provider so you can go in as a “cash” buyer
5. Negotiate
6. Reconsider unnecessary extras like paint protection, window tinting and leather protection
Helpful car finance tips
Once you have ticked all of the above off your list, you are in a good position to buy. In most cases it may work out better to arrange your own finance rather than going through the dealer. Here are some tips to help you avoid common car finance mistakes.
- Compare the total monthly cost and not simply the quoted rate: Sometimes competitive quotes from brokers include terms and repayments “based on a banks very low rate”. This rate may be lower than other quotes, but when you work out the monthly repayments the effective rate can be much higher due to additional brokerage fees.
- Be wary of fixed rate contracts with no break fees: Some dealers use the “Rule of 78” which results in interest being repaid first and capital thereafter. In this instance, if you break the contract early the outstanding capital is artificially inflated. Essentially you are not getting a fee-free break.
- Don’t make a decision on the dealership floor: Buying a new car is an emotional purchase, making you vulnerable to the dealer’s influence and suggestion. If you really like a particular vehicle, you may consider speaking to a broker who will give you an unbiased opinion and help you secure the best price for your chosen model.
- Think about your broader financial commitments: for every $30 000 of car finance you are effectively limiting your ability to borrow $91 000 against a residential property purchase.
