Buying your first car is exciting, but it can also be overwhelming. There are so many decisions to make - what car, where to buy, how to pay - and plenty of potential pitfalls along the way.
This guide will help you navigate the process with confidence, avoid common mistakes, and get the best deal possible on your first car.
Set Your Budget First
Before you start looking at cars, figure out what you can actually afford. This means looking at not just the purchase price, but all the ongoing costs of car ownership.
- Purchase price or loan repayments
- Registration and stamp duty
- Insurance (get quotes before buying)
- Fuel costs based on your expected driving
- Servicing and maintenance
- Potential repairs for older vehicles
New vs Used - Which Is Right?
New cars come with warranties and the latest features, but they depreciate quickly - often losing 20-30% of value in the first year alone.
Used cars offer better value but come with some risk. A well-maintained 3-5 year old car often provides the best balance of reliability and value.
Consider Certified Pre-Owned
Dealer-certified pre-owned vehicles come with inspections and often extended warranties, offering peace of mind at used car prices.
Factor in Running Costs
A cheaper car with poor fuel economy or expensive parts can cost more in the long run. Research running costs before buying.
Where to Buy
You have several options for purchasing a car, each with pros and cons.
Dealerships
Offer financing, trade-ins, and warranties, but prices may be higher. Good for first-time buyers who want support.
Private Sales
Often cheaper, but no warranty and buyer beware. Get an independent inspection and do thorough checks.
Car Auctions
Can offer bargains but also risks. Best left to experienced buyers who know what to look for.
Essential Checks Before Buying
Never buy a car without doing proper checks. This could save you from buying a lemon or a vehicle with hidden problems.
- PPSR check - ensures the car is not stolen or has money owing
- Service history - look for regular servicing records
- Independent mechanical inspection - worth every dollar
- Test drive - check for unusual noises, handling issues
- Check the VIN matches all documents
- Verify the seller owns the vehicle
Negotiating the Price
Almost every car price is negotiable. Do your research on similar cars, be prepared to walk away, and remember that the seller wants to sell as much as you want to buy.
With private sellers, cash offers and quick settlements can help negotiate a better price. With dealers, focus on the total price, not just the monthly payment.
Getting Finance Right
If you need finance, sort this out before you start serious shopping. Knowing your budget and having pre-approval gives you negotiating power and prevents emotional overspending.
Compare dealer finance with other options - often you can get better rates through a broker or bank.
Key Takeaways
- Set a realistic budget including all ownership costs
- Consider 3-5 year old cars for best value
- Always get a PPSR check and mechanical inspection
- Get finance sorted before shopping
- Be prepared to walk away - there are always other cars