 Buying your first car is an exciting experience.
This purchase represents a ticket to freedom for many teens,
however it can also present a minefield of trouble if care
is not taken. Following is a checklist of things to consider
when buying a used vehicle.
Choosing the right car
It
is important to consider a variety of factors when choosing
the right car. Budget, safety, fuel consumption and other
running costs will all impact on what is the right car
for you. High-performance, high-tech or luxury
vehicles usually mean more expensive maintenance and fuel
bills as well as insurance and repair costs. Check the
prices of common spare parts (eg headlights, oil and air
filters) and insurance premiums for various models you
may be interested in to get an idea of running costs.
The real cost of your new car
There's more to the cost of a car than
the purchase price. Stamp Duty, Registration transfer and
insurance can add a sizeable amount to the price. These
items vary according to model and purchase price so do
some research and factor it into your budget. Don't forget
regular maintenance costs. If the car is due for a service
or needs new tyres this can add hundreds of dollars to
the cost of the car. Set an upper limit to your budget
and stick to it.
Where to buy your dream car
So you have decided on the car for you.
But where is the best place to find it.
Used cars can be purchased several
ways, auctions, car dealers, privately and even over the
internet. There are issues with each method so it pays
to think about what suits you. Be sure to check out our Inspecting
the vehicle checklist.
- Dealers
Car
yards offer some advantages over buying privately however
this comes at a cost. When buying from a dealer you
receive a guarantee of title and usually are provided
with a warranty. This means however that cars are often
more expensive. To get the best quality used car, go
to a dealership that specialises in the makes you like.
New car dealers usually don't sell 'lemons'. Any used
cars they don't like they dispose of at trade auctions.
- Privately
Buying
privately can be risky. Even though the car will probably
be cheaper you're not guaranteed a clear title, and
you've got no legal backup. You can reduce your risk
by checking the vehicle with REVS the "Register
of Encumbered Vehicles Scheme" a service provided by
Fair Trading Offices in most States. When you contact
REVS you can find out if the car you are interested
in buying is "encumbered".
In other words, whether the person selling the car
still owes money on the car. REVS contains details
of financial interests registered on cars and trailers
in all States and Territories except Tasmania and Western
Australia. You will need to supply the registration
number, the Vehicle Identification Number (VIN or chassis
number) and the engine number of the car so that REVS
can do a search for you. If the car has no money owing
on it then you can ask for a certificate from REVS.
As long as you buy the car by midnight the next day
the certificate is legal proof that the car is "unencumbered".
The cost of a REVS search certificate varies, for example
the cost in NSW is $10, $12 faxed to you. As an additional
service REVS should also be able to tell you if the
car you want to buy is a stolen vehicle, or de-registered
because of unpaid traffic fines.
- Auctions
You can save money at an auction, but
you must do your homework. Ex-government and fleet
cars are often good value and have usually been regularly
maintained but they might not have been driven as carefully
as privately owned cars.
- Online
Pros
: You don't have to drive to dealerships
There's plenty of research material available
You don't have to negotiate face-to-face
Cons : You
may not be able to see/test drive cars
Continue to page 2 - Inspecting the vehicle >
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