1. Work out your car needs
Before choosing a car model and colour, take a moment to work out what you need from it. Is it just to get you from A to B? Or is driving a big part of your job? Do you need a large boot? Or do you need lots of space for your growing family?
By understanding what you need from a car and what you want out of it, you can narrow down your options significantly. And it can help you work out if you want a new or used car.
You can go online to research different models to find one that meets your needs. Another option is to visit car sales website, like Carsales , Redbook and GoAuto, to see what’s out there.
2. Understand your finances
Understanding your financial situation can help you immensely during the car-buying process, especially in the earlier stages. As a starting point, you can make a budget to assess your finances and work out how much you can put aside. Don’t forget to factor in any upfront and ongoing costs too, like fees associated with a car loan and the registration.
Where you can, ask the seller for a written quote. This can help you understand what you’re actually getting and compare costs to find the most affordable option that suits your lifestyle and driving needs.
Another thing to consider is how you want to pay for your new car. Some buyers might have enough savings to purchase the car outright. But if you don’t, you could take out a secured or unsecured car loan.
3. Get a background check on the car
If you’ve decided to buy a used car, then it’s a smart idea to do a Personal Property Securities Register (PPSR) check. This type of check can tell you if your future car:
- Still has money owing on it or if it’s leased.
- Is listed as or considered stolen.
- Has been written off or was repaired after an accident by an insurer.
- Has had its odometer tampered with.
You can get a PPSR check through the Australian Government’s vehicle search website for a small fee.
Another thing to think about is getting a roadworthy check done through automotive clubs like RACV or RACQ. This certificate will confirm whether the car is safe to drive on public roads.
4. Look at the car in person
After you’ve found the car you want to buy, it’s time to visit it in person to give it a thorough look over. Remember to check:
- The Vehicle Identification Number (VIN), registration number and engine number all match the registration papers.
- If there’s evidence of repairs from a major crash, like an overspray or missing fasteners.
- The tyres for uneven tread.
- For rust or any fluid leaks.
- Faulty break and indicator lights.
If you happen to know a mechanic, you can ask them to come along with you to look at the car’s condition too. They might be able to spot something that you might’ve missed. It’s also common for people to buy a pre-purchase inspection from a certified mechanic for a few hundred dollars, where they inspect and drive the car to provide a comprehensive opinion on any potential issues or work that needs doing.
You can also ask the buyer to take it out for a test drive. When on the road, think about how it feels to drive. Does it steer smoothly? How does it go when you’re stopped on a hill? While driving, listen for anything that sounds unusual, like any odd whirring noises. You can also ask a friend or mechanic to be your passenger to get their opinion on the test drive.
5. Consider when you want to buy
Like with a lot of big purchases, timing is everything, and buying a car is no exception. The end of the financial year and December tend to be quieter months for car dealers. So, if you can be patient, then you can take your time and secure a deal during those periods. And regardless of the time of the year, you can always try to negotiate for a few extras, like a free service or bonus car mats.
6. Check the contract
Carefully checking your contract can help you understand exactly what you’re agreeing to pay for. And it’s a clever way to spot any hidden costs that a seller might not have been upfront about. An add-on here and an extra there can quickly rack up, so work out if you really need the additional features now or if you can get them later.
7. Get car insurance
Taking out car insurance can provide cover for your car, other peoples cars, property and people. There are four different types of car insurance you can take out:
- Compulsory Third Party (CTP) insurance is required for all registered vehicles. This type of insurance covers the third party – pedestrians, passengers, and drivers of other vehicles – if you cause an accident and they become injured, require ongoing care for an acquired disability or pass away. It’s usually included in the cost of your car registration. Just remember that the rules for CTP insurance change from state to state.
- Comprehensive Car Insurance is the highest level of coverage your insurer can offer. It covers damage caused to your car and damage your car might cause to other vehicles and property in events that are included in your policy. This level of cover is broader than third-party insurance.
- Third Party Property Damage only covers your liability for accidental damage your car causes to someone else’s property or vehicle. It doesn’t cover you if there’s damage to your car.
- Third Party Fire and Theft offers the same cover as Third Party Property Damage, but with the addition of cover in the event of a fire or theft.