What you need to know about Buying a Car for your Teenager

Not so long ago, your child was just a toddler, reaching out their pudgy little hand for you to hold as they crossed the road. It seems that no time at all has gone by and now they’re suddenly old enough to not only cross the road by themselves, but to actually drive a car!

Our parental instincts stay with us regardless of the age of our children so when it comes to your teenager’s first car, it’s no wonder that safety is at the top of the list of priorities. If you’re buying a car for your child, here are the top considerations to ensure you make the right choice:

• What will the car be used for? Sounds like a silly question, but will they be driving younger siblings around? If so, consider suitability for car seats and for youngsters to safely get in and out of the car.

• Brand new or second hand? Cost will probably come into the equation for this one, but take into consideration the cost of any repairs on an older vehicle that may outweigh the upfront cost of having a new car warranty.

• Not all new cars are created equal! Be sure to research and compare safety ratings and features of new vehicles. Look closely at items such as airbags, brake systems, crash test results, reversing camera, electronic stability control.

• If buying a second hand car, have a professional mechanic do a pre-purchase inspection. Although it’s not a guarantee that the car is in perfect condition, it will point out any weaknesses that need to be addressed and give you a realistic view of the condition of the car.  You can come and see us at any of our service centres for a pre-purchase inspection.

• Once you’re happy with the car you’d like to purchase, make sure it is clear who is responsible for the upkeep. Who will pay for petrol, insurance, repairs, service and general maintenance?

In their eagerness to get on the road (and look cool), your teenager may be pushing for a little red vintage convertible, but when push comes to shove, you can always pull out the ‘parent card’ and remind them just who is paying for it. J

The low-down on capped price servicing!

Capped-price servicing is one of the buzz phrases doing the rounds in the new car market in Australia. But what does it mean and is it all it’s cracked up to be?

The basic idea of capped-price servicing is to offer buyers peace of mind when buying a new car. Dealerships will give new car owners an idea of how much their car servicing costs will be over a set period, so that they know in advance how much they’ll have to fork out.

Most of the big brands offer capped-price servicing, but the Australian Competition and Consumer Commission (ACCC) has recently investigated the program offered by Kia, and is set to investigate further into what other manufacturers are offering.

The ACCC issued a statement about Kia and its capped-price servicing offer, stating that a provision in its terms and conditions that allowed the price of scheduled services to be increased over time was “misleading”, given the scheme supposedly implied the price of a scheduled service was fixed for the entire term.

In other words, Kia’s conditions said it could scale up the price of a capped service, likely by either linking it to the CPI or passing on increased parts of labour costs, at any time after purchase, couched with the fact that a ceiling — albeit a higher one — would remain in place.

This, according to the ACCC, contravened statements on Kia’s

website starting in 2012 which, in its words, represented to consumers that its scheduled service prices were capped at a maximum price set upon purchase.

Kia has since amended its terms and conditions to ensure that its service prices were “genuinely capped”; written to affected consumers confirming the applicable capped service prices for their vehicle; and offered to refund any amounts paid by consumers above the capped service prices that applied to their vehicle when it was purchased.

Due to the ACCC’s investigation, several car companies have reviewed their capped-price servicing plans and more importantly the terms and conditions. The corporate watchdog has re-iterated that it is “reviewing other offers made by other manufacturers”.

The point is here that a buyer can be influenced by promises of capped, or fixed, price servicing, but that reading through the small print is important. Since the ACCC investigation many car manufacturers posted on their websites that they where reviewing their policies.

Consumers still need to be careful with capped price servicing, just because it’s capped price servicing doesn’t mean it’s the best price.

At Cooper Automotive, we also offer fixed price servicing which in most cases is cheaper than the dealers capped price service plan and without the need to read the small print. 

We also promise that ‘the price we quote is the price you pay…guaranteed’. 

And coming to us for peace of mind has no effect on your dealership warranty…at all.

Nissan makes history by trumping Holden sales in February

Last month, Nissan's new car sales surpassed Holden's for the first time in Australian automotive history. It's also the second time in the past twelve months that Nissan has beaten Ford in a monthly new car sales tally. In fact, Nissan is selling more cars now than when it assembled them locally (between 1972 and 1992).

In disturbing news for Australia's struggling car manufacturers, the top-three selling car brands in February were Japanese. Only two locally made cars, the Commodore and Cruze, made it into the top 10 - barely.

Industry veterans are blaming the Australian dollar, which has been at record highs for two years. In December, one Australian dollar bought 80 Japanese Yen, but as the Japanese currency weakens, the value of one Australian dollar climbed to almost 95 Yen at the start of March.

The artificially devalued Yen has enabled Australian importers of Japanese cars to offer abnormally sharp discounts. Honda Australia has even reverted to sourcing some cars from Japan (rather than Thailand) because of the price drop.

Brand-new models of the Nissan Pulsar, Toyota Corolla and RAV4 have recently been released in Australia with the same - or in some cases even cheaper - prices than they started with in the 1990's, despite being much better equipped.

The dramatic effect of rising currency on the Australian car manufacturing industry has renewed calls for the Reserve Bank to weaken the dollar - and quickly. The industry is at risk of being squeezed down the market ladder as European brands also move to make the most of favourable exchange rates. Last year a Mercedes Benz was the second-highest selling medium sedan after the Toyota Camry, ahead of the Mazda6 and Subaru Liberty.

The preliminary sales figures for February 2013:

Top-selling brands (compared to February last year)

• Toyota - 15,992 (up 7 per cent)
• Mazda - 8728 (up 0.4 per cent)
• Nissan - 8225 (up 32 per cent)
• Holden - 7687 (down 20 per cent)
• Hyundai - 7505 (up 1 per cent)
• Ford - 6590 (down 5 per cent)
• Volkswagen - 4190 (up 1.4 per cent)
• Honda - 3862 (up 48 per cent)
• Subaru - 3104 (down 3.8 per cent)

Top-selling cars in February (compared to February last year)

• Mazda3 - 3378 (down 11 per cent)
• Toyota HiLux - 3319 (up 46 per cent)
• Toyota Corolla - 3158 (up 0.5 per cent)
• Nissan Navara - 2639 (up 30 per cent)
• Mitsubishi Triton - 2336 (up 72 per cent)
• Hyundai i30 - 2055 (down 15 per cent)
• Ford Ranger - 1739 (up 118 per cent)
• Holden Commodore - 1733 (down 42 per cent)
• Holden Cruze - 1730 (down 39 per cent)
• Nissan Dualis - 1548 (up 70 per cent)

Figures provided by news.com.au Read more at news.com.au

Compare your insurance and save!

Would you stick with your auto-insurance provider if you knew there might be a better one out there? 

These days we are spoiled for choice when it comes to insurance providers, and it's a lot easier to research their products and policies online, but changing providers can still be a bit daunting to anyone who has always stayed loyal to single insurer as we tend to in Tasmania. Today we will look at the nuances of migrating to a new insurance policy, perhaps one that suits your needs better, has more flexible options, or just saves you money!

A good insurance policy limits your damages and protects you from undue financial stress when something goes wrong with your car. The cost of the premium should be within your budget while providing the best cover for your vehicle.

So what do you do when you find a new policy or provider that you would like to switch to? It’s quite simple really. Some insurers will let you cancel your policy (if you give them proper notice) without a charge, while others will levy a cancellation fee in order to forfeit your policy. If you’re switching to a different policy offered by the same insurer, your cancellation fee may be waived depending on the company rules. You can sometimes avoid paying a cancellation fee if you cancel your policy during the ‘cooling off’ period. The cooling off period occurs just after you've purchased the policy, or when the policy is due for renewal.

If you decide to cancel your current policy, let your insurer know well in advance in order to make the transition a smooth experience. Cancelling your policy when it is up for renewal makes sense, as you will be able to avoid a cancellation fee, and the administrative process following your cancellation will be much simpler.

Most importantly, before you make the final switch make sure you read through the policies available to you. Read the fine print prior to signing up - make sure that you know exactly what you are getting into and what the insurer promises to provide in the case of a claim.

A good way to start looking at alternative insurance providers is to get a general overview of what other companies might charge you for insuring your car. This website might be helpful in getting an idea of what you can expect to pay from a range of car insurance providers.

How important is it to change your engine oil?

Saving fuel = Saving money = Saving the environment!

We all want to do our bit for the environment - and we all want to save money at the pump.

Well here's the good news - we've compiled our five top tips to help you both reduce your fuel consumption costs and diminish the impact your car has on the environment!

1. It may sound obvious, but keep your load light! Don't keep a heavy load in your car if it doesn't need to be in there. Tools, power equipment, sports gear and general luggage will all increase the weight of your car - and thereby increase your fuel consumption! Also, consider removing roof-racks and bullbars if they're not needed - tyou'll notice the difference!

2. Keep an eye on your tyre pressure. By keeping the pressure near the upper limits of the manufacturer's recommend range, you'll reduce rolling resistance and improve your fuel consumption (and keep your tyres in better condition for longer!).

3. Regular servicing will save you money! Not only at the fuel pump, but on the general maintenance of your car. Things can go wrong in between your scheduled services, and even simple things like replacing a dirty air-filter can decrease your fuel consumption by nearly 5 per cent .

4. If your car has a manual transmission, get a feel for making smoother down-changes. Rev the engine lightly, with the clutch disengaged, just before the lower gear is engaged - the result of smoother down-changes is that you'll drive more smoothly, which will in turn reduce fuel consumption and wear on your clutch and gearbox.

5. Flow with the traffic and avoid "hard" braking and accelerating. Anticipate traffic movements and give yourself plenty of warning about approaching traffic lights and lane congestion. Comparative tests have shown that an aggressive driving style can increase fuel consumption by up to 35% when compared to a smooth driving style.

Dealing with depreciation

The depressing thing about buying a new car is depreciation. We all know that the moment a new car is driven out of a dealer’s yard it begins to drop in value.

Unless you somehow pick a future classic, the chances are that your car will keep depreciating until it is worth next to nothing. Although cars depreciate at different rates, the general rule-of-thumb is that in the first 3 years your car will depreciate around 13-15%.  After that time the depreciation slows to around 6-9%.

But there are a few simple ways to reduce your depreciation costs right from the word go.

The most obvious is to buy a second hand car, since it will lose value at a slower rate than a new car. Look for a second hand car with its warranty still valid and you'll be off to a good start.

Buying older or run-out models, demo models or leftover stock at end of year sales can get you a nice discount - even though it won't stop the depreciation, it will bring the starting value down so that the depreciation cost is not as high.

It's definitely worth remembering that some cars hold their value better than others. Look for a quality model from a respected brand - cars with good reputations have generally earned them. Cars that are known for being reliable and well-manufactured tend to depreciate at a lower rate.

Don't discount the effects of depreciation - it's your hard earned money, so spend it wisely!