Did you know that for every five cars in Australia, one is a ute? Utes are uniquely Australian, with the first “coupe utility” rolling off the Ford Geelong plant in 1933 – a Model 40-A Light Delivery, or a modified coupe with a tub bodywork instead of a passenger compartment in the back.
With prices on the rise and waiting lists blowing out in 2022, how can you get a good deal on a Ute? In this guide, we’ll show you how to make the most of your Ute, finance, and when and where to buy.
Choosing the right Ute for your budget
Consumers have a plenty of options. There are a wide variety of utes on the market, including dual cab, single cab, and even high-end luxury Utes. We can now learn more about vehicles than ever before thanks to the internet.
The first stage is to determine which Ute best suits your needs; this separates important information from unimportant information and produces a list of probable Utes that really makes sense. How much can you afford to spend on your ute is the next question – you can get deals for under 30K if you want to go used and all the way to 80K and beyond. What can you – or you as a business – afford in repayments, insurance, fuel, and maintenance each month? Do the maths and set a hard budget.
New vs used
New utes have a higher initial price than used but used may eat up more of your dough over the long term in fuel, maintenance, repairs, and so on. Lenders also pass on favourable rates to those going new, as it’s seen as low risk. If you have the stomach and time for tyre kicking, checking PPSR, test driving, and no shows, you can drive home a steal of a deal if the stars align and your ute is in good nick.
Buying Utes as a business – loans
If you’re buying a Ute as a business you’ll likely need to get a car loan for a work ute. Businesses use chattel mortgages because they can get tax breaks when they buy and as they pay off the loan. You can claim the GST paid and the interest on the loan through your activity statements. You can also get tax breaks for depreciation up to the limit for depreciation. Other flexible options are that you can finance more than the sale value of the Ute, so you can pay off rego and insurance in the loan as well. This can be great if you’re just starting out and want to keep cash flowing.
Timing your purchase
The Federal Chamber of Automotive Industries claims that June and December are the two months when most vehicles are sold. Dealers are making room for new models, which is why. They are losing money because of the cars in the showroom. You can get a decent price if you can convince them to let you take it off their hands. Since sales associates are required to meet quotas, consider visiting dealers at the end of the month if you are unable to wait that long. If you negotiate well, you could find yourself walking away with a great deal.