How do I get the finance and accessories details right on my next SUV?

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Choosing the right SUV is only half of the battle. Getting the finance right is essential if you want a cost-effective ownership experience

Hi John,

Looking through your videos, I find them interesting and helpful. I am wondering whether to buy a Nissan X-TRAIL, new or used, 1 to 2 years old. Should I get the extras aftermarket?

Also, is a lease is better than a bank loan? I think leasing is right for me because I like the package: the fuel card, servicing, tyres, insurance, etc. and I like to keep my options open at the end of the lease period.

I will probably only travel about 9,000km a year. I use to be one of those guys that went out and bought a $10,000 car and kept it for 6 years. Anyway, I am interested in any advice.

Thank you, 
Stephen

Hello Stephen,

For starters, I wouldn’t have the X-TRAIL as my first choice. If you want a five-seater, consider the CX-5, Kia Sportage or Hyundai Tucson. In the seven-seat category: Mazda CX-9, Kia Sorento and Hyundai Santa Fe are all better. All these vehicles are objectively better than the X-TRAIL. More detail here:

• Mazda CX-5 review >>
• Hyundai Tucson review >>
• Kia Sportage review >>
• Hyundai Santa Fe review >>
• Kia Sorento review >>
• What's the best 7 seater review >>

The best type of finance depends on you and your financial situation. There’s no ‘one size fits all’ answer to your question.

Leases, chattel mortgages, etc., generally suit businesses. Bank loans etc., tend to be for private buyers. Novated leases (also called salary sacrifice) are a great way for salaried employees to eliminate GST and increase buying power. There are ‘fully maintained’ options for novated leases and some business finance products as well, which include a fuel card, etc. I’ll get a specialist to call and walk you through the details. Or you can make ask me more on that here >>

More to read up on here:

• The different kinds of finance >>
• Salary sacrifice/ Novated lease >>

Finally I'd suggest that getting the accessories wrapped up in the finance (ie - purchasing the accessories when you purchase the car and bundling it all up together in the finance) seems cost-effective because you don't need to find (potentially) thousands in cash up front, straight after buying the vehicle. Just bear in mind that this option also increases the cost of the accessories over time.

Sincerely, John Cadogan

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