Car Buying Tips: Are you making these 10 common mistakes when buying a car?
Check out these car buying mistakes and tips; and be sure to avoid them before you fork out tens of thousands of dollars!
Car Buying Mistake 1:
Not being sure of whether you are offered Guaranteed or Non-Guaranteed COE packages
Attracted to a car package that seem very low in price? Be cautious as such car packages may consist of COE packages that may require you to top up extra or one in which you may even end up not securing a COE.
If you get a guaranteed COE package, the car dealer will secure your COE within a specified number of bids. At times, it may also come with a cap and you have to top up if the COE price exceeds the cap. On the other hand, a non-guaranteed COE package would require you to pay a booking fee to the car dealer to bid for your COE for an agreed time duration, normally 6 bids, with the COE amount already fixed to enter the bidding. However, if the COE price stays above the fixed COE amount, you will not get a COE at the end of the agreed time duration.
At MHG Cars, where customers always get the best deals, all our car packages are Guaranteed COE packages without top-ups. Therefore, no matter how much the COE price rises, the amount you pay will still be the same and you will definitely get a COE by the agreed time duration. If you are unsure of how the COE works in Singapore, check out How does COE Work.
Car Buying Mistake 2:
Not knowing what is included, and what is not, in the Pricing Package
With so many components making up a car package including but not limited to the COE, the car’s OMV, ARF, Excise Duty, GST, it can be confusing to determine if a package is a good deal or not. Similar to knowing which COE package you are getting, you should also find out what is included, or rather what is excluded, in the pricing package so you know the overall amount your car is costing you.
Here at MHG Cars, car packages include all of the above plus road tax, registration fees, warranty, servicing and premium accessories so you do not have to worry about having to pay more than expected for your car.
Car Buying Mistake 3:
Not getting the best interest rate
When buying a new car, you will probably need to get a loan to help finance your purchase. Aside from getting a good package price, the interest rate on your loan can also make a significant difference to the total that you are forking out for the car.
At MHG Cars, we do our best to secure the most competitive interest rates in the market for our customers so that they need not do the work themselves. For example, the banks are now having a promotional interest rate of 1.98% and this is also what MHG Cars is offering. Do make sure you are not going for higher interest rates unnecessarily. But also, be careful when dealers are offering interest rates way lower than the rest. The low interest rate often comes with a much higher car price. Contact us to find out about our promotional interest rate now!
Car Buying Mistake 4:
Overpaying the Downpayment
After deciding on the car that you want to get, you should ensure that you do not overpay the downpayment. Find out the required downpayment amount before signing for the package.
A downpayment at MHG Cars consist of the COE bidding fee and booking fees (excluding high loan customers) – the $10,000 COE bidding fee being fully payable to LTA to secure a COE for you, and a $2,000 booking fee payable for processing a range of services that include securing a loan for you as well as booking and locking down the car model and colour you want.
Car Buying Mistake 5:
Not knowing how much you need to loan
Making the right decision on the car model can translate into a bigger loan that you can get. Depending on the OMV (Open Market Value) of the car model you choose, your loan options will differ. If the OMV is less than $20,000, you can get a 70% loan; conversely if the OMV is more than $20,000, you can only get a 60% loan. Before you finalise your car model choice, check to see if it matches your loan needs. With MHG Cars, you can also choose to take a full loan as well. Contact us for a non-obligatory consultation now!
Car Buying Mistake 6:
Not knowing what accessories you are getting
While some car packages include accessories such as leather seats and DVD player, they can be very basic. So when considering car packages, you might want to find out more about the accessories you are being offered.
Car packages at MHG Cars comes with premium accessories so you can be assured that they are of good quality.
Car Buying Mistake 7:
Getting a car where the warranty and servicing package is unreliable may be a costly mistake
The warranty should be an important factor to consider when you are shopping around for a car. For such a large purchase, the warranty would give you peace of mind that any possible faults are covered for.
One thing to check for reliability is if the warranty offered by the dealer is outsourced or in-house. If it is outsourced, the risk factor increases for customers – in the event that the workshop ceases to operate, warranties of cars will also be affected. On the other hand, for workshops that are in-house, warranties of cars will still be backed by the dealer. At MHG Cars, our workshop is in-house and are backed by insurance companies so this translates to even lesser risks for customers.
Car Buying Mistake 8:
Choosing a popular car model but lack uniqueness
If you choose a popular car model and common colour, your car will look just like many other cars on the road. However, at MHG Cars, you can easily make customisations to differentiate your car. From changing the car’s bodykit to the accessories and colour, you can make the car truly yours and stand out.
With our extensive network of working partners, you can be sure that you get the best deals for any customisation you wish to get for your ride!
Contact us to find out about our different customisation packages now!
Car Buying Mistake 9:
Trading in your old car before getting your new ride
If you are trading in your old car for the new car, you may end up with the inconvenience of not having a car before you collect your new car.
Here at MHG Cars where customers’ needs are a priority, customers will definitely not face this inconvenience. Our customers will still be able to drive their old cars all the way until they receive their new car. Additionally, we offer high valuations for trade in cars so that our customers always get the best deal at MHG Cars!
Car Buying Mistake 10:
Not selecting a trustworthy dealer
With so much talk on car dealers closing down before customers get their cars resulting in financial losses, it is therefore critical to ensure that you engage a dealer that is recognised, reliable and does not partake in any unethical conduct.
For companies in the motor business, the CaseTrust and Singapore Vehicle Traders Association’s joint accreditation differentiates the dealers who offer transparency and good business practices in their dealings with consumers. It also provides mediation facilities in the event of disputes.
Prioritising fair trading and transparency to customers, MHG Cars has been awarded the CaseTrust-SVTA Joint Accreditation for Motoring Businesses for a period of 4 years and also put in a $50,000 insurance bond to protect customers.
In addition to being CaseTrust accredited, MHG cars is also backed by MoneyMax Leasing and Hyper 21 Enterprises Pte Ltd. Customers can therefore shop hassle-free with ease and confidence at MHG Cars: for example, if there are any delays in getting your new car, you can get compensation from MHG Cars (*on a case by case basis). Additionally in the event of any disagreements arising, customers can be assured that MHG Cars would be fully committed to resolve any possible disputes with assistance from CASE if need be.