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How to buy a car

June 22nd, 2011 -

If you are considering either buying a car for the first time or just renewing your existing chariot, then follow these easy steps for a stress free, peace of mind, good value purchase.

  1. Decide how much you want to spend on a car and, if you need to borrow, how much can you afford to repay each payday.
  2. Go to your nearest NZCU credit union and apply for a pre-approved loan, and discuss your options with a staff member.
  3. Go and find the car you want.  Auctions, Trademe, dealers or privately, knowing you have the pre-approved loan means you can negotiate a good price. (For tips on negotiating a good price, watch this video!).
  4. Get a Motor Vehicle Inspection Report from an independent organisation eg. AA, Motor Vehicle Inspection Services, or just look someone up in the Yellow pages.  This will cost between $120-$180 depending on who you choose to do the report, but it is money well spent.  Even if you end up not buying the car because of some fault discovered during the inspection – spending $100-odd dollars now could save you thousands in the near future.  You can always ask for this cost to be included in the loan.
  5. Consider the report and negotiate with the seller to either fix any problems discovered or reduce the selling price accordingly.  At this point you can decide whether to purchase the car or walk away and look at other options.
  6. Once you find the car you want, take the details back to the NZCU credit union and they will check that the car is not secured to a Finance company – if it is they can arrange to have this sorted but they will always keep you informed as to what is happening.
  7. Arrange for full motor vehicle insurance through the NZCU credit union, or your own contacts, and ensure that the NZCU credit union is noted as an interested party on the policy
  8. Payment is made and – CONGRATULATIONS! – you are now the proud owner.
  9. Drive safely!!


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