Australia is a big country. Unless you live in the heart of a major city, there’s the very real likelihood that you will need a car at some point in time. Buying your first car is a rite of passage for many young adults – and we wanted to talk you through some of the ins and outs of buying your first car so that this journey is easier for you.
After all, you do not want to live with the regret of making a poor financial decision or choosing the wrong type of car for you. Buddii are here to help with this comprehensive guide to the truth about buying your first car!
You’ve Decided – Now What?
The first thing you need to do once you have decided to buy a car is to figure out how much you can actually afford to spend. Not the upper limits, but your true amount. This includes any loan repayments that you may need to make. You also need to keep your registration and insurance in your mind when calculating your budget too. You don’t want to overextend yourself and get stressed before you have even got behind the wheel!
When choosing the type of car you want to buy, you need to consider a range of factors:
- What type of car do you want, and what can you afford to run?
- Do you need a manual or an automatic car?
- Are you looking to own this car for the next five years, and if so, what are you planning on doing for that time? Will a coupe with two doors still be what you want in five years’ time?
- Are you looking for a diesel or a petrol car?
- How much are parts for the vehicle make and model you are considering?
All of these factors can be worked out with some research, and you may need to spend some time online looking at cars for sale and working out what type of car suits you best. You can also engage the services of a specialist to help you find your car for you!
Ultimately you will find your ideal car if you work out the make and model of car that suits you when you think about what you are using it for. Larger engines might be more powerful, but they use more fuel. How important is safety? Work out your priorities and go from there.
New or Used?
Once you have decided on your car, for the sake of an example let’s say you’ve decided on buying a Toyota Camry. There are plenty of great used Toyota Camry cars out there online, but what if you want to buy a brand new one from a dealership?
After all, if you are buying a used car you run the gauntlet of buying a bomb – but if you buy from a dealership, you have the assurance of a warranty and a vehicle which is being sold with guarantees. A private seller, on the other hand, knows their own car well and will have an idea about the driving history.
A private seller also does not have any overheads like renting a commercial premises so they can sell their car for significantly less. A private seller might also be more motivated to sell their vehicle, for whatever reason, and you may walk away with a great deal.
The option you choose here will come down to your budget, overall, and will depend on what kind of vehicle you are looking to buy. If you do opt for a brand new car, you need to know exactly what you want, and this will mean doing your research.
You will also need to be prepared to negotiate and be ready to walk away if the dealer does not agree to come down to your chosen price. You need to read the fine print and make sure you do not get sucked into paying for extras you do not need.
Also, be aware of any finance on the car – any debts it has can quickly become your own.
Top Tip: don’t be afraid to haggle! The dealer wants your business, and you are a valuable asset to them; they will be happy to come down to a reasonable price.
The Big Test Drive
When you’re buying a vehicle, you need to take it for a test drive and ensure that it drives well and is in good condition. Check the tyres and ensure they have sufficient tread. Make sure as well that your vehicle is not blowing smoke from the exhaust or emitting fumes or gases.
Check the lights, check the brakes, check the gear shift as well – these are all critical things which can indicate something is wrong. The car should start immediately, and the vehicle should handle well. If there are any groans, creaks, or rattles, then it could be a sign something is wrong.
Top Tip: Get your car checked by a qualified mechanic or a friend or family member who knows cars – as this can save you hassle down the line.
Make the Purchase and Drive Away Happy
Ultimately, you need to do your research, get your car checked out by a professional (if you are buying second hand), check the warranty (if you are buying new), and ensure that you get the car for the price you want. If you are getting a loan for your vehicle, work out how much you can afford to borrow and take your time with it.
When you know what you want and what it’s worth paying for it, you will get a good deal. Don’t buy on an impulse, always sleep on your decision. If you want a great deal on a loan that you can trust, Buddii is here to help with quality car loans for new and used vehicles. Call us today to find out more on 1300 BUDDII or contact us online to apply.