What people underestimate about changing vehicles

A new car can represent a lot of things. A taste of freedom. A safer way to get your family to where they need to be. An opportunity to reflect your personality. But if you’re thinking about changing to a new vehicle, there are a few things to keep in mind that you might not yet have considered.

The number people focus on, and the ones they miss

Lots of people who are thinking about buying a vehicle focus on the price that’s displayed in the window. That makes sense, because that purchase price is what you know you’ll have to hand over to the seller of the vehicle. But when you only think about the price you need to pay to take the vehicle home, you may overlook some of the other costs that can come with ongoing ownership.

Running costs that catch some people by surprise

Once the car is yours, you’ll need to think about things like insurance, fuel, servicing and maintenance. The cost of insurance can vary quite a bit, depending on the value of your vehicle, its age and the type of vehicle it is. There are a number of insurers operating in the New Zealand market and it can be worthwhile shopping around to compare quotes. Consumer NZ said last year that vehicle premiums had increased by as much as 46 percent between 2023 and 2025.

Similarly, fuel economy can be different from one vehicle to the next. Your new vehicle could be more efficient than your current one, or it could use more gas – it’s worth trying to find this out at the outset so you know what to expect. Fuel prices have fallen quite a bit since the big increases in March, but if you’re budget-conscious, it might pay to do a bit of research on how much you could expect to spend on filling any car up. The RightCar website has some information that may help.

You’ll also need to have your vehicle serviced regularly to keep it running well, and you’ll have to pay for things like tyres from time to time. These are all costs that aren’t anything to worry about but it’s helpful to know that they are likely coming, so you can find space in your budget.

As well, you may need to think about things like depreciation. All cars lose value over time, and new cars often drop in value most quickly in the first few years of ownership. If you’re borrowing to buy a vehicle, you might consider how that drop in value is likely to compare to the speed with which you pay off your loan.

Does it actually fit your life?

Anyone who’s owned a two-seater convertible then had children can probably tell you that sometimes a car that’s a great fit in one stage of life isn’t quite so good for the next one.

If you’re looking for a new vehicle, you might be thinking about things like whether there is space for any child seats that your family needs. In New Zealand, it’s generally recommended that kids are in some form of carseat until they are at least 148cm tall.

You may also think about things like how the car works with your lifestyle. Someone who is doing a lot of driving on unsealed roads, for example, might be looking for something that can handle rougher terrain. Someone who spends a lot of time commuting in a city might find a smaller car easier to park. You’ll know how you and your family need to use your vehicle, and you’ll be able to compare your options to find one that will work well for you.

The family vehicle equation

People looking for a family vehicle often want something a bit bigger to fit children and all the things they need to move around. You may be looking for something that’s really safe, to help protect the ones you love. You can also look on the RightCar website to find out how any vehicle you’re considering stacks up for safety 

Thinking it through before you commit

It’s often a good idea to take a minute to ponder your decision before you settle on a new vehicle. You’ll want to think about how the car will work with your life. How will you use it day-to-day? Are you likely to continue to commute as you currently are, or are there changes ahead that may alter how you use your vehicle? How practical will the car be for your daily driving habits?

If you are thinking about changing vehicles, it can help to look at the full cost picture - not just the repayments. The better finance™ team can help you understand what different options might look like for your situation. If you’d like to chat about what could work for you, get in touch better finance™️.

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.