Buying a new or used car is usually a fair whack of money and you want to be sure you don't get a lemon. There are even more questions with a used car, but whichever car you're interested in, you should do your homework and learn about the pros and cons of the model you want. After all, a little groundwork now might prevent an expensive mistake later on.
The good bits. A new car is great because it'll come with a warranty so you'll only have to pay for regular servicing. If anything goes wrong, the car will be fixed and the parts replaced free of charge.
The bad bits. Depreciation is a huge hidden cost. By the time you've driven off the dealer forecourt and out onto the road, it could have lost a whopping 20% of its value, as the car becomes technically 'used'. Scary stuff. So it pays to do your research and buy a model that holds it value.
Questions to ask about a new car:
And remember, you can say "No, I won't be having those unnecessary and expensive extras, thanks".
The good bits. A second hand car is cheaper than a new one so you won't have to spend so much to get the freedom you want.
The bad bits. You don't really know the history of the car and even though you'll get it checked out, you'll never really know how it's been treated in the past.
Questions to ask about a used car
It might cost you a few more dollars to start with, but a car with a good reputation is less likely to break down every 5 minutes, and it will hold its value far better in the long run. Do your homework, and ask friends and family who might be in the know.
If you know the right price for the car that's caught your eye, you're far less likely to get ripped off. Good places to check car values are:
It might look nice and shiny on the outside, but rogue traders know every trick in the book to disguise expensive or even dangerous faults beneath the gloss. So don't just lift the bonnet and kick the tyres to give an impression you know what you're doing. Get the car properly inspected, either by your state or territory motoring club or someone you trust if you can't afford to pay for an inspection.
Check it's debt-free
Depending on where you live, you can find out if that lovely car you are thinking of buying is carrying a debt. So if you don't want your new car repossessed or find yourself having to clear someone else's debts (it happens), check the website below, which covers all states and territories.
It's best to steer clear unless you really know your stuff. It's easy to get carried away and once the hammer falls it's legally yours, like it or not. While it can save you money, it can also come with serious consequences. Cars that would fail an extended road test are often sold at auction and as the buyer you take all the risk. Make sure you check the auctioneer's terms and conditions before you bid. Some have high auctioneer's fees and the difference between buying at auction or through a dealer may not be worth the extra risk involved. If you do feel you want to take your chances, make sure you do a trial run and bring someone along with you who really knows their cars.