The Best Value Cars Awards conducted by the NRMA Open Road focussed on assessing the ‘real-world ownership’ of 120+ vehicles with the MG3 the overall winner. Several of the most popular vehicle types were included in the awards with winners announced for each category.
This assessment of vehicles based on the real costs of ownership may provide buyers with useful information when selecting their next vehicle. What does value mean for you? Many buyers may only consider the driveaway price and loan repayments. With costs-of-living pressures persisting, considering what a vehicle may cost beyond the initial purchase may be significant in easing budget pressure across the ownership cycle.
We cover off on the results of the Open Road awards plus provide details on adding even more value to your purchase with your choice of financing.
Awards Criteria for Best Value Cars
Open Road is a publication issued by the NRMA which includes interesting and valuable information for car owners. This inaugural awards program is aimed at assisting buyers to make a more informed decision when selecting a vehicle that offers value.
When considering winners of any awards program, it is important to consider the criteria or guidelines that the judges used to arrive at their decisions. With the Open Road Best Value Car Awards 4000 calculations were carried out and 120+ vehicles assessed. The vehicle categories included were hybrids, EVs, small cars, dual cabs and SUVs.
The factors covered in the calculations included insurance, depreciation, costs of fuel or electricity, registration, tyre replacement, maintenance and servicing. Depreciation was assessed on the 5 year mark resale value. Fuel cost calculations included consideration of the national average price of fuel and consumption. The EV calculation used a ‘blended charging model’. That is public fast charge, home and solar charge.
As price is a major contributor to value, the entry level variants of the vehicles were chosen for assessment. The results indicate the ‘real-world ownership’ rating for vehicles over a 5 year period.
For more information on specific criteria and calculations, head to the awards webpage.
Best Value Cars – Winners
Overall, the MG3 was crowned the winner and the winner in the Small Cars category. The MG QS won the Family Cars category and the BYD Shark 6 the Dual Cab Ute
category. SUVs were categorised as small, medium and large with winners Suzuki Ignis, Chery Tiggo 7 PHEV and Skoda Kodiaq respectively.
There has been a marked surged in the sale of EVs and hybrids in recent months. But what to buy? If you want value and trust these awards, the best value hybrid was assessed as the Toyota Yaris and the best value EV, the BYD Atto 1.
Highly commended across the categories were Mahindra XUV3XO 1.2 AX5L, GWM Ora 5, Honda ZR-V VTi X, Kia Picanto manual sport, Kia Sorento and KGM Musso ELX.
There is plenty of information for buyers to digest when creating their short-list of vehicles before heading to a dealership for an inspection and test-drive.
Add More Value when Financing Best Value Cars
While these awards comprehensively cover the ownership costs over 5 years, they do not cover the cost of finance. Most buyers will need a car loan to buy a new vehicle. When talking ‘value’ in relation to motor vehicle finance, getting the best value for most buyers will mean getting the lowest monthly car payment which usually means getting the lowest car loan interest rate.
While many are clear on what they want, they may not be completely across how to get what they want. How to get the lowest rate and the lowest payments. Whether requiring a personal car loan for a new vehicle or business vehicle financing, the same factors should be considered in securing the best value.
The interest rate is critical! Rates vary with lenders, individual loan products and the financials and credit profile of the buyer. Finding the lender, loan product and hence the lowest rate to suit an individual buyer can be time-consuming, confusing and challenging. Using an expert motor vehicle finance broker can help buyers to identify their most suitable and affordable finance.
While focussing on the monthly payment, don’t overlook the total interest that accrues on the loan. A critical factor in the overall cost of buying the vehicle. Consider the term of the loan and the amount borrowed.
The term affects both the monthly payment and the total interest payable on the loan. The easiest way to see how this works is to calculate payments at different terms using our Car Finance Calculator. Consider the value which may be realised by paying a little more per month and saving on total interest.
The loan amount affects the monthly payments but can also affect the interest rate offered. A larger loan compared with the value or price of the vehicle may be seen as a higher risk loan by lenders and attract a higher rate. The loan requested usually reflects the deposit a buyer is prepared to make on the vehicle. Making a larger down payment may deliver a better value result.
When applying for finance, credit profiles and scores are integral to lender offers. Taking time to follow the guidelines for improving a credit score may deliver benefits.
Lender fees and charges can vary with lenders and with different types of loans and can affect the overall cost of finance. If considering dealer finance for example, look beyond the rate and at any extra fees and any special conditions. Where a promotional interest rate is advertised, make sure you are aware of what happens after that promotional period expires.
To add value when buying one of the best value cars, connect with a Jade car finance broker online or by phone on 1300 000 003 for your best value car finance.
DISCLAIMER: IN REGARD TO MISREPRESENTATIONS AND ERRORS CONTAINED IN THE MATERIAL AS PRESENTED, LIABILITY IS NOT ACCEPTED. THE DETAILS AND CONTENT IS PROVIDED FOR CAR BUYERS AND INDIVIDUALS AND BUSINESS SEEKING FINANCE PURELY AS GENERAL INFORMATION. THIS IS NOT PROVIDED AS THE ONLY SOURCE OF FINANCIAL INFORMATION. ANYONE THAT CONSIDERS THAT NEED FINANCIAL ADVICE ABOUT THEIR SPECIFIC REQUIREMENTS SHOULD SEEK THEIR OWN FINANCIAL ADVISOR.
