The ultimate first car buyer's guide

Buying your first car is an exciting milestone, but it can also feel overwhelming. With so many choices on the market and factors to consider, it’s important to take your time and make an informed decision.

Whether you’re a new driver, starting a family, or moving to an area where public transport isn’t an option, this guide will help you navigate the process.

From car buying tips to best buys for your budget and what you can (and can’t) legally drive, our First Car Buyer's Guide will help you get the car that’s right for you.

Before you start looking at cars, consider what you need from your vehicle. Are you after a small, fuel-efficient car for city driving, or do you need a larger SUV for family duties?

If you’ll be commuting long distances, fuel efficiency and comfort should be top priorities. Those in rural areas might require a car that can handle unsealed roads. Understanding your specific needs will help narrow down your options.

If you don't know where to start, try carsales' car match quiz to help narrow down your search.

We've put together some articles on just this topic:

Five questions to ask before buying a car
Five reasons to buy a hatchback
Five reasons to buy an SUV
Five reasons to buy a sports car

and, yes, Five reasons NOT to buy a ute!

Then there’s the law. It’s important to know the law that applies to you as a learner or probationary licence holder. It’s different in each state and territory, so here’s an updated guide pointing you in the right direction.

If you are on a probationary licence, some of that ‘narrowing the field’ has been done for you. To avoid disappointment, be sure that the car you want is the car that you’re legally allowed to drive.

Related: The L-plate and P-plate rules across Australia: Every state and territory covered

Your budget should include more than just the purchase price. Ongoing costs like fuel, insurance, registration, and maintenance all add up.

If you’re considering financing, work out how much you can afford in repayments without stretching yourself too thin. Many first-time buyers opt for a used car to save money but make sure to factor in potential maintenance costs if you go this route.

There are benefits and drawbacks to both new and used cars. New cars come with a manufacturer’s warranty, the latest technology, and no previous wear and tear.

Check carsales New Car Showroom to explore the latest new cars on sale in Australia.

However, they’re more expensive and lose value quickly. Used cars are often more affordable and don’t depreciate as fast, but they might require more upkeep.

We've highlighted key used cars for first buyers to consider:

10 great used first cars for under $10,000
10 great used first cars priced under $20,000
10 great used first cars for under $30,000

If buying a used car, always check the vehicle’s service logbook, purchase a carsales vehicle history report and consider getting a Redbook Inspect pre-purchase inspection.

Never buy a car without a test drive. Pay attention to how it handles, brakes, and accelerates.

Check for any unusual noises or vibrations. For used cars, inspect the exterior and interior for signs of damage, rust, or excessive wear. If unsure, consider having a mechanic inspect the vehicle before purchase.

Related: Inspecting and test driving a car before buying

If you’re financing your car, compare interest rates from different lenders, including banks and dealership finance options. Always read the fine print to understand the total cost over the loan term.

Insurance is also essential—comprehensive insurance offers the best coverage, but third-party property insurance is the minimum legal requirement. Be sure to get quotes before purchasing to factor these costs into your budget.

The deal is done, but what’s the best way to pay for a second-hand car? Buying a car and paying for it are two very different steps. The former relates to deciding you’ve found the right set of wheels, which is exciting, while the latter is handing over your hard-earned cash, which can be frightening.

Bank transfers, bank cheques, online transfers and cash have been the go-to forms of payment for cars both new and used. If you're buying a used car, this can be even more nerve-wracking as the payment is between you and another private citizen rather than a licensed dealer.

If you are buying a used car via carsales, our new payment solution can help you trade with more confidence. Pay through carsales helps prevent scams and ensures a safer transaction by verifying the identities of both buyers and sellers.

Funds are only transferred on request at the key handover, giving both parties peace of mind. Whether you're buying or selling, paying through carsales provides confidence at every step.

Love your ride

Now that you know how much time, money and effort goes into finding a new car, our best advice to you is to look after yours. Wash it, polish it, care for the interior and stick to the suggested service schedule. A well-maintained car is a more valuable car and one day you’ll be looking to trade in your first for another. Pay it forward.

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Or email us at editor@carsales.com.au