Getting a new car (at least new for you) can be fun. Buying it isn't always as enjoyable. However, the more research you do, the more likely it will be that you’ll buy the right car at the right price.
A minute on your money - Buying a car
In this video we give your some tips on how to avoid buying a headache and how to choose a finance option that suits you.
|Finding your car|
If you’re buying a new car, your choice is limited to dealers registered to sell that make and model. For a used car, you can see a dealer, buy privately or go through an auction house.
Your research will help identify the makes and models that suit and eventually narrow down the search to the individual cars. Some of the more popular sites include:
Before going to the expense of a professional inspection, do your own homework to rule out any duds.
Under the bonnet
The road test
If the car passes your own informal inspection, it may then be worth investing in a professional inspection to be sure that it’s in a satisfactory condition. You can arrange this through the motoring body in your area:
They'll inspect a car most days of the week, but you’ll have to book and pay a fee.
|Buying your car|
The more homework you do, the better your negotiating position is.
One helpful site for comparing the average price for various makes and models is Red Book.
Buying at a dealership
You may pay more buying through a dealer than at auction or through a private sale. After all, dealers sell cars to make a profit and they also have to comply with warranty regulations. However, there are advantages.
A new car warranty is set by the cars manufacturer, not the dealer. It can be up to five years, and some cars have longer warranties against rust. A used car warranty from a dealer is not usually as comprehensive as a manufacturers. Some dealers offer only the minimum statutory warranty on a used car; others give up to three years.
Check what your warranty covers. Does it include everything originally covered by the manufacturer?
Minimum warranties on used cars differ from state to state and in some cases the dealer will not have to offer a warranty. Check with the relevant government department in your state or territory.
Leaving a deposit
You’ll generally be required to leave a deposit with the used car dealer to hold the car while you arrange an inspection. Leave the smallest deposit possible and, if you’re yet to complete the inspection, make sure the money's refundable.
Signing an order form
The message here is read the fine print. Don't sign something you don't agree with or don't understand - get independent advice. If you’re signing subject to an inspection or finance, make sure this is in writing. Don't risk losing your deposit because you agreed to buy the car but couldn’t raise the funds.
Buying privately is a step up the risk ladder. There are no warranties, no contracts, and your seller might be trying to offload a troublesome car. But you also may grab a great car at a good price.
If you leave a deposit to secure the car until inspection, get a written agreement that the money is refundable if the inspection is unsatisfactory.
Buying at auction can mean significant savings on the dealer price, but these vehicles don't generally carry a warranty. So if you aren’t saving a significant amount on the dealer price, you might as well buy from a dealer and get a warranty.
Before you start bidding at an auction, arrange any finance. Most auction houses require a deposit of $500 or 10% of the purchase price for successful bids. Within 24 hours the balance must be paid and the car removed from the premises.
Avoiding stolen property
Stolen cars or cars carrying outstanding debt can be repossessed without compensation. When buying a used car its very important to check that the seller is the genuine owner.
The answer is to do a REVS check.
|How we can help|
At ANZ we have a range of finance options and insurance solutions, which may help you get out on the road and protect your new asset.
With a choice of secured and unsecured loans, we can tailor a package that suits your needs. Our approval process is fast and easy and that means you’ll be out on the road sooner.
1. ANZ Car Insurance is co-issued by OnePath General Insurance Pty Limited (ABN 56 072 892 365 AFSL 288160) – phone 13 20 62 (OnePath General Insurance) and QBE Insurance (Australia) Limited (ABN 78 003 191 035 AFSL 239545) (QBE). OnePath General Insurance is a wholly owned subsidiary of Australia and New Zealand Banking Group Limited (ABN 11 005 357 522) (ANZ). ANZ is an authorised deposit taking institution (Bank) under the Banking Act 1959 (Cth). OnePath General Insurance is owned by ANZ – it is a co-issuer of the products but is not a Bank. These products are not deposits or other liabilities of ANZ or its related group companies and none of them stands behind or guarantees the issuers. The information provided is of a general nature and does not take into account your personal needs and financial circumstances. You should consider the appropriateness of the information having regard for your objectives, financial situation and needs. You should read the ANZ Car Insurance Product Disclosure Statement (PDF 912kB) and consider whether these products are right for you. ANZ receives a commission of 12.5% of your premium for ANZ Car Insurance from the issuers. All ANZ Group staff members receive a salary, and may receive monetary and non-monetary benefits based on the number of ANZ Car Insurance sales achieved.
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The information provided is general information only and does not take into account your personal needs and financial circumstances and you should consider whether it is appropriate for you. Before making any decision to acquire, hold or sell any financial product, ANZ strongly recommends that you seek financial planning and/or tax advice and read ANZ’s Financial Services Guide (PDF 104kB), the relevant Product Disclosure Statement and/or Terms and Conditions.
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