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Carsales Staff4 Dec 2023
ADVICE

Buying your first car

Buying your first car can be a great experience, but it pays to do a little research and this advice guide will walk you through the process, step by step

Buying your first car is a really exciting time – and so is the independence that comes with it. You can hit the road when you feel like it, rally a spur-of-the-moment road trip with your mates, and best of all you'll never have to wait for a bus, train or tram ever again!

But, before you drive off into the sunset, there are a few things you should know about before buying your first car. It pays to know what to look out for and to understand all the associated costs involved.

Choosing The Car That's Right For You

Being realistic is really important when considering the type of car to buy. Perhaps your dream car would make James Bond himself jealous, so you may have to tone down the fantasy...

1.  What is your budget?

You will most likely be looking to buy a used car for your first set of wheels, however if you have the budget for it, new cars can offer certain advantages such as a full new-car warranty, reduced maintenance costs and you get to pick the colour of your car as well as any added extras. As you are likely to be constrained by a budget, try not to get sidetracked by cars outside of this limitation. Your budget must also take into account some of the easily forgotten costs such as transfer fee on purchase, insurance, annual registration, and maintenance costs including servicing, tyres, cleaning and, of course, petrol!

2. What will your car be mainly used for?

You'll also need to consider how you will be using the car. For example, if you are mainly zipping around the city, a large SUV probably isn't going to be the best option for you. As a general rule of thumb, the bigger the engine the more it will cost up front and in running costs.  In fact, for young drivers, V8 or turbocharged engines are not permitted in some states. Smaller cars are generally much more economical.

3. Do your research

By now you probably have a particular make and model in mind, so make sure you research all aspects of owning this car. Some cars might seem cheap to buy, but can cost a bomb to maintain, or may even have specific reliability issues. Also consider whether you are looking for a manual or automatic (manuals tend to be cheaper), safety features, how many kilometres the car has done, and does it have a full service history. All of these things can affect the buying price.

When searching for your first car, online is generally the best place to start. At carsales.com.au you can research and compare cars in the comfort of your own home. carsales has over 200,000 new and used cars online, as well as the latest automotive news and reviews. The carsales.com.au editorial team test-drive and review everything from compact cars to large off-roaders, providing unbiased reviews on each car. carsales reviews cover all the key details including safety, technology and, not least of all, fuel economy.

4. Shopping around

It goes without saying that being well researched is vital to making the correct choice. It's important that you don't make any decisions if you are feeling pressured. Unlike a new pair of jeans, you can't just take back a car if you change your mind. Most importantly don't be afraid to ask questions. If somebody is asking a much cheaper price than everyone else, ask why. And remember, if it seems too good to be true it generally is.

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Here are some things that you should take note of when checking out a car:

  • History: A seller should be able to show you a history of any servicing or repair work. Ask if the car has been in any major crashes or had any major parts replaced.
  • Legitimacy: You will be able to check through your state/territory government transport authority of the car's credentials such as whether or not the registration is current, if it has been recorded as stolen or written off, and if there is a registered security interest showing money is still owed on the vehicle.
  • Registration: Consider how much it costs to register the car.  If the rego is due soon after the sale, you might be able to bargain down the price.
  • Roadworthy Certificate:  A car should be roadworthy. Ensure that the seller provides you with a Roadworthy Certificate to prove this and check that the date is current.
  • Inspection:  Paying for an independent inspection is highly recommended, and can be useful to clear up any doubt that you may have about the car. Mobile inspectors from RedBook Inspect are a great option. You could also turn to motoring associations or an independent mechanic in your area.
  • Mileage: A car engine can usually go for 200,000km to 300,000km before it conks out, so aim for the lowest kilometres covered. Around 20,000km a year is considered average. Checking through the service book is often a good way of getting a feel for the car.
  • Safety:  A car's safety features should be carefully considered. Does it have airbags? If so, how many? How are the brakes? If you are purchasing a used car, ensure you arrange an independent vehicle inspection to address any potential issues. And check out the How Safe is Your Car? website to check on the safety ratings of individual models.
  • Walk-Around: Be sure to closely inspect the car's body work to ensure that it is in tip-top condition. Take particular note of any rust or dents. This is important if you want the car to last and be safe in the event of a crash.
  • Test Drive: It goes without saying that you should always take your potential new car for a test drive.

What to look for on a Test Drive

Ride Quality - Drive the car on a number of different road surfaces. Test it on the kind of roads you expect to drive every day.

Transmission - If driving a manual look for a smooth gearshift and clutch action. If testing an automatic, how are the upshifts and downshifts? There should be no abrupt jolts or lurches during these automated shifts.

Handling - How well does the car react to changes in direction? Does it feel stable and controllable? Do you feel you could avoid an accident if you had to? Does the steering feel precise with no excessive motion?

Braking - Really use the brakes. Make sure they slow you in a straight, controlled manner. Brake softly and then aggressively to test the car's reaction to sudden braking input. Remember to warn passengers before doing so and be sure to check for other cars around you.

Noise - Listen for excessive engine, interior, tyre and wind noise with the windows up and down. If the car is equipped with a sunroof, open it and listen. Do this under normal driving conditions to ensure noise levels are suitable.

Parking - Parallel park the car to check for blind spots or any difficulty identifying the corners of the car.

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5. Buying the car

Once you've found a car you're interested in it's likely that it will be through one of the following three options.

Buying from a car dealer

Buying from a licensed dealer has many advantages.  A dealer car is also more likely to be prepared for sale in a roadworthy condition and you will have ample opportunity to inspect and drive the car prior to making your decision. Dealers are also subject to much tougher laws than private sellers, including statutory requirements to provide a warranty, depending on age and mileage of the car.  In most states, a 'cooling off' period is allowed for and the dealer also guarantees title, which takes the risk out of buying a stolen car or one where finance monies are still owed. The downside is you can pay a little more for this peace of mind.

Some things to consider when buying from a dealer:

• Check the fine detail of a statutory warranty and confirm what is, and isn't, covered.
• Once you've taken the car for a test drive and checked the car's documentation, you can request a full mechanical inspection.

Buying from a private seller

Cars sold privately can be a bit cheaper, but you need to do the running around to ensure the car is legitimate. You also don't get the benefit of a statutory warranty or a cooling-off period. You'll have to check things like registration, whether the person selling you the car has the right to do so, and if the car has been written off by the authorities. It's a good idea to go with somebody who knows their stuff.

Some things to consider when buying from a private seller:

  • For registered cars, check the registration certificate to see that the owner's name, licence plate number, vehicle identification number (VIN), engine number and other details correspond with the sellers driver's licence. You can confirm these details with your state's road transport authority.
  • Ask the seller about the car's history. Has it been owned by anyone else? When was it first registered? Have they had anything modified or repaired?
  • Take the car for a test drive, but be sure you take someone with you. The seller may ask you for a copy of your driver's licence so be prepared for this.
  • Make sure the car has a current roadworthy certificate before you buy. Never offer to get it yourself; it is the seller's responsibility.
  • If like most people, you don't know much about cars, get a professional mechanical inspection. Private sellers will usually accept this if you agree to pay a small deposit. This should be fully refundable if you are not satisfied with the mechanical inspection report.
  • To help you get the best price for your new car, it pays to be informed. Be sure to research the price of the car before you go to the inspection. RedBook is a pricing authority that allows you to value new and used cars online. Check out RedBook.com.au for more information.
  • Get a receipt for any money you pay.

With over 200,000 cars to choose from, you can find Australia's largest selection of new and used cars for sale at carsales.com.au, from both dealers and private sellers.

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Buying from an auction

An auction is another cheaper alternative however there are greater risks, so it's not a place for the inexperienced. In some states, vehicles bought at auctions will have barely any paperwork. Also keep in mind that it is highly unlikely you will be able to test drive an auction car before the bidding process begins.

Some things to consider when buying at an auction:

  • Turn up as early as possible so you can get a good look at the car and always go with someone who knows their stuff. Inspect as best you can, including starting the engine.
  • Pick a budget and stick to it. This is especially important at auctions as people can get caught up in the heat of the moment in a bidding war.
  • Stick to reputable auction houses. Remember that auction houses don't know the history of the car so you may be exposed to buying a stolen car.
  • Be wary of any warranties provided by auctions as they have a lot of exclusions.

For more detailed advice on buying a car and what your rights are as a buyer, check out the carsales.com.au Help Centre.

Good luck with buying your very first car and enjoy all the memories that will come with it!

Tags

Car Advice
Buying A Car
Buying a Used Car
First Car
Written byCarsales Staff
Our team of independent expert car reviewers and journalists
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