Buying Your First Car? Here’s What to Do

Buying your first car is one of the most exciting experiences you can have. To help you through the process, we’ve rounded up a few things to consider before making the big purchase.

New or Used?

This is the biggest and most obvious question you should ask yourself before setting out to find a great first car. New cars are obviously more expensive, but often come with a warranty and sometimes even a promotional deal like a year worth of free maintenance. They can also feature capped price servicing, which is when the maximum cost of your car’s services is set for a year or two. This really helps you budget for the ongoing costs of owning a car.

However, new cars start depreciating the moment you purchase them, sometimes up to 20% immediately after you’ve driven it home.

Used cars on the other hand are much cheaper, meaning that you’re more often to find a good deal. The trade-off is that sometimes you might not know their full history. Dutiful owners should keep their cars in good shape and have all the receipts the records. Sometimes though it might be missing, and if you’re unlucky, you might end up paying a fortune in ongoing costs because of an issue that you weren’t aware of.

Whether you choose to buy new or used, do the research, and buy a car that has a good reputation. This will always make it easier to resell down the line, and less likely to have any issues with regular day-to-day use.

Money and Budgeting

Next up, it’s time to sort out your money situation. It’s always a good idea to work out your financials, set a budget, and stick to it. You should think about whether you can buy the car outright with savings, or if you’ll take a loan out to cover the costs. Also consider the costs of owning a car: things like petrol, registration, car insurance, road tax, maintenance, etc. You should want

Finding Your Car

Nowadays, it’s easier than ever to find your car. Once you’ve worked out your budget, you should have narrowed down your choices a bit. After that, think about the make, model, and age of the car you want. What will you be using it for? What are your needs?

Once you’ve narrowed down the search even further, the fun part begins. If you’re buying new, it’s as simple as showing up to the car dealerships in your area. If you’re buying used, you’ll probably have to spend some time trawling through the internet sites to find something that meets your needs.

Questions to Ask When Buying a New Car

Here are a few common questions you should ask if you’re deciding to buy a new car.

• Does it come with capped price servicing?
• What are the standard features of the car?
• How long does the warranty last?
• Does it come with any promotional deals?

Questions to Ask When Buying a Used Car

If you’ve decided to buy a used vehicle, here are some questions to keep in mind when searching.

• Has the car ever been in an accident?
• How long have you owned the car? How many other people have owned the car?
• Do you have the records of all the work that has been done?
• Is there any debt on the car?
• How many kms are there on the clock?

Checking Things Over

For new cars, you won’t have to spend a whole lot of time inspecting the vehicle – things should be spick and span. A quick check should do it.

For used cars, the process is a lot more involved. Here’s a list of things to look at:

• The paperwork: Ask the owner for the records of work done and registration documents. Look for anything that doesn’t add up – perhaps the mileage is different from what’s on the dash, or the colour/engine number are listed as something different. If there’s something suspicious, be wary.
• The exterior: Look out for any dents, check whether the paint finish is even, and check the treads on the tires.
• The interior: Double check the seatbelts are all working, if there are any fault lights on the dashboard when it starts, and if the wipers and washers are working. Also make sure that the spare tyre, jack, and toolkit are there.
• The test drive: Before you set out, you might want to check whether all the lights are working. When you’re out on the road, pay attention to the feel of the clutch, brakes, any rattling at high speed, and if the steering wheel vibrates.

And if you’re buying used, make sure there’s no money owed for the vehicle that might transfer to you if you purchase it.

Car Insurance

After you’ve made your purchase (congratulations!), the first thing you should do is purchase some car insurance. NRMA offer a wide variety of insurances from comprehensive coverage to CTP Green Slip.