'Don't overspend on a car purchase - smaller and cheaper equals better value!'
There seem to be lots of good reasons to buy that new car at the moment - trade-in assistance, guaranteed buybacks, balloon payments, low interest rates...
But how big a role should any of these factors play in your decision?
Bruce Whitfield gets valuable pointers from Warren Ingram, personal financial adviser and executive director of Galileo Capital.
One key piece of advice: Always try to buy secondhand or at least older demo cars.
And when it comes to financing, even if you take a low interest rate deal, ensure that you pay a big deposit.
Ingram admits that's he's just taken on a financing deal himself to buy a car, but at a rate below inflation.
The calculation I do in my head... is can I do better with that money without taking excessive risk over the same time frame because if I can, then I should keep that money and invest it. But if I can't... then I should definitely pay off the car with cash.Warren Ingram, Personal financial adviser and executive director - Galileo Capital
I'm fairly confident in my ability to do a bit better than 1.5% a year over the next few years, and that was the reason for financing the car.Warren Ingram, Personal financial adviser and executive director - Galileo Capital
Having said that, I didn't do any of the other fancy stuff that these car companies offer... I definitely didn't take a new car... I definitely didn't do balloon payments or any of those things where they give me payment holidays or guaranteed value...Warren Ingram, Personal financial adviser and executive director - Galileo Capital
He says those options create a false sense that the buyer is getting a car relatively cheaply, while in fact they'd be overpaying.
Listen to Ingram's money-saving advice in the audio below:
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