It’s almost the end of the financial year, which means many people have their heart set on buying a brand new car.

Not us. We just can’t go past the fact that new cars lose around 30 per cent of their value in their first two years, making second hand cars much better value. Third party website like www.carsales.com.au and www.drive.com.au make it so easy to search for used (and new) cars these days. We recently bought a second hand mini over the internet to commute in to Sunrise each morning. It was just 6 months old, had done 6,000km and was 35 per cent cheaper than the new car price. Turns out the previous owners had unexpectedly fallen pregnant the month after they bought the car and were keen to get a family wagon. If you’re in the market for your next car, here are our tips on how to get the best deal.

1. Do your homework and narrow down choice

There are new and second-hand cars for all budgets. It’s vital you work out how much you can afford to spend before you start shopping for a car and set a strict limit. Think about how often you drive, how many passengers you take, how much boot space you need, whether fuel efficiency is important, how long you want to keep the car and your price range.

Use the car websites like the ones listed above to narrow down the models that best suit your needs and your budget. Also ask friends and relatives for their recommendations because there’s nothing like real world experiences. If a friend is driving a model you’re looking at, ask them about your key issues like boot space, reliability, turning circle, fuel efficiency etc. When you have decided on the model you want it’s time to shop around.

2. Understand the tricks of the trade

If you’re going to a dealer, remember that car salespeople are amongst the best in the world… so you have to understand, and try to beat, their tactics.

Check different dealers selling that car online and get their best price. Next, walk into a dealership, tell them the lowest price you’ve been quoted and ask if they can beat it. Local dealers may give you a better deal because they’ll hope to get your car servicing business too.

Try not to be too picky on colour and accessories. You’ll get a better price if the car is in stock and you’re prepared to buy it that month. The car sitting in the showroom is costing the dealer money. They want to get rid of it as quickly as possible and will be prepared to deal, especially at the end of the month and the end of the financial year. In June manufacturers need to clear stock to make way for new models, which can mean big discounts.

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Another little tip. Don’t be too picky in cleaning your trade-in. For example, a trade-in which has been detailed says to the salesperson “here is a person who has already made the decision to buy a new car so I don’t have to work as hard to get them across the line”.

And no matter who you’re buying from, never be afraid to negotiate; the headline price is for mugs. Make a reasonable offer, keep emotion out of it and walk away if you’re not getting what you want. A few hundred bucks may not seem like much in the context of a car, but quickly adds up.

3. Be careful with the financing

If you’re buying from a dealer, using the car dealer’s finance may not be such a bad thing. Some dealers will give you a better discount on the car if you get finance through them, instead of paying cash, because they get a cut.

Of course you need to understand what’s out there before you sign. Negotiate the price before you talk to the finance manager, otherwise they may try and make the car seem affordable without discounting the sticker price. Also look at alternative sources of finances from banks, credit unions and peer-to-peer lenders like Society One.

Armed with this advice, you’re in a great position to find your dream car at a dream price. Happy hunting!