16 Jun Buying a Used Car: Things You Need to Know
So you decided to purchase a new (kind of) set of wheels but you reckon a used car is relatively cheaper than opting for a brand new one.
You’ve seen those EOFY car sales and you’re convinced that June is the best time to buy a new car. The used car industry in Australia is a big business so you won’t have a hard time in terms of looking for options. However, the process can be overwhelming, much like buying any other property. So to help you navigate the seemingly-complicated used car market, take note of these tips before landing on that deal.
Choosing the Vehicle
Look for a car that meets your needs. Is it for family use? For weekend long drive perhaps? Set yourself a strict budget based only on what you can afford. Consider the ongoing running costs that will go along with buying the car—fuel, insurance, maintenance costs, repayments if you opt for a car finance. Essentially, buy a car that best suits your needs and budget.
Conduct a Research
Once you know what kind of car you want and the budget you set, you can now look for cars that fit within those range. Check out the market price for the used models so you can compare. Find out the car’s strengths and weaknesses by looking at the public forums online. There are also helpful websites where you can customise your search. Try crowdsourcing on your social media accounts and see if there are people you’re connected with who are selling their cars. Conducting a market research empowers your decision and you can avoid getting blindsided and fooled.
Arrange an Inspection
Yes, you might know a lot about cars or not. The point is, it’s better to be sure than sorry. If you’re buying from a private seller and not a dealer, have a qualified mechanic inspect the car. You might have your dad, your uncle, or anyone you might know who’s a mechanic who can expertly check if the car is good to go. Don’t accept the purchase if you are not satisfied with the condition.
Document the Transaction
Any promise, warranty, or guarantee that is only discussed verbally is difficult to enforce. Put everything into writing. Check the contract and make sure it’s complete. If something does not satisfy you, you may opt to modify the contract and insert the provisions you desire to protect your interests. Read and understand it carefully before signing. Get a copy of the contract and warranty documents.
The compulsory third party personal (CTP) insurance is the minimum legally required insurance included with all registered vehicles. It covers the driver for liability with regards to claimants health and medical costs. It may not cover the driver who should have his or her own travel or health insurance. Other insurance you might want to consider are the following:
- Comprehensive – covers damage to your own vehicle and other people’s property, as well as theft and some other risks, plus legal costs
- Third Party Property – covers damage to other people’s property and legal costs, but not damage to your own vehicle
- Third Party Fire and Theft – Third Party Property with some add-on features that cover your vehicle
Now that you have an idea what to consider when looking for a used car, don’t hesitate to message me if you have clarifications or concerns. Remember, when it doubt, ask! Afterall, it’s okay to not know everything! 😉
Credit Representative (486927) is authorised under Australian Credit Licence 389328.
This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.