Cars - they’re the ultimate ticket to freedom and make getting around a whole lot easier, but are you having trouble deciding what kind you want?
From registration to budgets, dealerships to private sellers - buying a car can sometimes be financially daunting.
If you’re feeling a little overwhelmed, we’ve created this handy guide with tips on how to buy your first car.
You might have just scored your provisional licence or need one for your new job, whatever the reason might be - everyone has a different budget.
Consider the following before buying a car:
What’s the maximum price you’re willing to pay for a car?
Can you budget for the upkeep? (like fuel and regular maintenance)
What type of car insurance do you need?
Owning a car comes with extra costs like registration, insurance, servicing, and petrol, so ensure your budget accounts for these things on top of making the purchase.
Depending on where you got your licence in Australia, you might be restricted to driving a certain transmission. For example, if you got your provisional licence in Queensland, you must take a separate test to drive a manual car. Automatic and manual transmission have different pros and cons.
Read below to get a better idea of the transmission types:
| Pros | Cons |
|---|---|
| Easier to maneuver | Cost more than manual cars |
| Sometimes safer (can keep both hands on the wheels, doesn’t require manual gear change) | Require more maintenance |
| Better to use in peak hour/ traffic | Less fuel-efficient |
| Pros | Cons |
|---|---|
| More control over the vehicle | Harder to learn |
| Better fuel economy | More effort to drive in peak/heavy traffic |
| Cost less than automatic cars | Less convenient |
The next thing you might be wondering is - where do I buy my car? There are a few avenues you can take, and similarly to picking what transmission you want, there are pros and cons of going through a car dealership or private seller.
If you want to simplify the process of buying a car - a car dealership might be right for you.
Salespeople can help you with the car, registration, warranty, and safety inspection. While this might be more convenient than going through a private seller, it usually comes at an extra cost.
Most car dealerships carry out rigorous inspections to ensure cars are in working order but consider hiring an independent mechanic to check over the vehicle.
Going through a private seller is sometimes a more affordable option but carries more risk.
People often use online marketplaces like , Facebook Marketplace, and Gumtree to sell second-hand cars. If you do your research, you’ll get a good idea of how much the make and model you want is selling for. If the car is listed above the second-hand market price, there might be an opportunity to haggle the price down.
The main risks of buying from a private seller are no warranties or guarantees. Some sellers may not disclose all the problems with the car, which could leave you with unaffordable repair costs.
It’s always a good idea to request an inspection report from a mechanic, but things you can check before purchase include:
How many kilometres the car has travelled
The condition of the vehicle for any scratches, dents, or noticeable faults
How many previous owners the car has had
If there’s any outstanding finance on the car
Where possible, request a certificate of roadworthiness and service history from the previous owner. Also, take the car for a test drive to see how it feels at different speeds and whether it makes any unusual sounds. Check out our buying a used car guide for further details.
Now that you know a little bit more about buying your first car, have you considered what insurance you want? Everyday Insurance offers flexible cover options for you and your car.
Cover and benefits are subject to eligibility criteria and terms and conditions, including the limits and exclusions of the insurance policy. Any advice provided is general only and may not be right for you. Before you purchase this product you should carefully read the Car Insurance Product Disclosure Statement and consider the Target Market Determination to decide if it is right for you.
